PRESS RELEASE
Posted on: 9/18/2005

Contact:
Jodi Greenblatt
(703) 610-0260

NAMB Urges House to Pass FHA Reform Legislation
H.R. 1852 Would Modernize Agency Critical to Consumers and the Market

Washington, DC - September 18, 2007 – The National Association of Mortgage Brokers (NAMB) has called on members of the House of Representatives to pass H.R. 1852, the "Expanding American Homeownership Act of 2007," which would modernize the Federal Housing Administration (FHA). The House votes today on the measure, introduced by Rep. Maxine Waters (D-CA) and House Financial Services Committee Chairman Barney Frank (D-MA). "The need to reform and enhance FHA is critical, so that it can respond adequately to the needs of consumers and the market today," said NAMB President George Hanzimanolis. Hanzimanolis said NAMB supports H.R. 1852 provisions that will:

1) Strengthen FHA by raising its mortgage limits nationwide in all communities, while paying special attention in high-cost areas where consumers are most often in need of affordable mortgage financing options.

2) Allow FHA to offer flexible down payment terms and simplify the down payment process to help homebuyers overcome a significant barrier to homeownership.
3) Allow FHA to price loans according to a borrower's risk.

4) Update FHA's successful reverse mortgage program.

5) Increase the availability of FHA loan products to first-time, minority and low- to moderate-income homebuyers by expanding the distribution channels that serve FHA.

Additionally, Hanzimanolis urged the House to support an amendment that would further increase in FHA loan limits from $417,000 to $500,000. Proposed by Chairman Frank and Reps. Gary Miller (R-CA) and Dennis Cardoza (D-CA), the amendment would better accommodate borrowers living in high-cost areas of the country. "The reforms contained in H.R. 1852 will provide long-overdue modernization to the FHA, which will revitalize and increase participation in the FHA program," Hanzimanolis said. To see the full letter to the House of Representatives click here

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The National Association of Mortgage Brokers is the voice of the mortgage broker industry with more than 27,000 members in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage broker industry, which originates 68% of all residential loans in the United States.

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