FHA reform

The House of Representatives, along with Treasury Secretary Paulson, on behalf of the Bush Administration, announced a bipartisan economic stimulus package with provisions that can help jumpstart the housing market and protect some current homeowners.

An overhaul of the Federal Housing Administration’s mortgage insurance program and an increase in the size of mortgage loans that Fannie Mae and Freddie Mac can purchase are key housing components included in the economic stimulus package announced yesterday. As late as last week, there was uncertainty on whether housing finance was going to be part of the stimulus package. However, NAR and its members did not give up, focusing on continued education and communications with Members of Congress both in Washington, D.C. and in their home districts.

FHA Reform will:

• Stimulate new-home sales and refinancing
• Reduce the number of families facing foreclosure
• Give families who want to purchase a home a safer alternative to many of the riskier mortgage products of the past
• Help more people refinance into less-expensive FHA-backed loans
• Allow more families to buy a home because of lower downpayment requirements

Information taken from the following article: NAR Successful In Injecting Housing Components in Federal Economic Stimulus Package