WASHINGTON, D.C.-U.S. Sens. Sherrod Brown (D-OH) and Mark Begich (D-AK) today introduced legislation to protect taxpayers by ensuring sound lending practices by the Federal Housing Administration (FHA). Brown's bill is companion legislation to the FHA Reform Act which overwhelmingly passed the U.S. House of Representatives in June 2010.
"For years, FHA has provided qualified borrowers access to safe, affordable mortgages," Brown said. "This legislation will prevent taxpayer bailouts, improve FHA's risk management, and ensure more competition in the mortgage insurance market. Our goal is to promote a safe and sound market for qualified homeowners."
"For many Alaskans, mortgaging a home can be an intimidating process. I am proud to propose legislation providing qualified Alaska homeowners with an increased sense of security and easier access to safe mortgages. This legislation would improve conditions for all parties; those seeking mortgages, the Federal Housing Administration and taxpayers," said Begich.
The FHA Reform Act would help the FHA improve its risk management and prevent future taxpayer bailouts by giving the FHA the ability to implement a risk-based pilot program and use outside credit risk experts. The bill would:
This legislation is supported by the Mortgage Bankers Association, the National Association of Home Builders, and the National Association of Realtors.
Brown serves on the U.S. Senate Banking, Housing, and Urban Affairs Committee, where he serves as chairman of the Economic Policy Subcommittee. Brown is working to overhaul federal housing programs. Brown introduced the FHA Modernization Act of 2007 which was adopted by the full Senate in December 2008. He is a leading proponent of providing assistance to communities affected by the housing crisis and population loss. He fought for the creation of the Neighborhood Stabilization Program in the Housing and Economic Recovery Act of 2008 and the continuation of the program in the American Recovery and Reinvestment Act (ARRA) of 2009. In Sep. 2008, Brown announced that Ohio communities would receive more than $258 million in NSP funds authorized by the housing bill. In Sep. 2009, Brown wrote to Secretary Donovan in support of Ohio applicants to the second wave of funding through the NSP program.
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