Calls for FHA Reform Gaining Momentum 

Momentum to reform the FHA mortgage lending program is again gaining speed, with officials from both the U.S. Department of Housing and Urban Development as well as the National Association of Realtors pushing anew for proposed reforms from legislators in Congress. “Now is the time the country needs FHA. As subprime loans reset and real estate markets have cooled, a reformed FHA would be perfectly positioned to offer borrowers a safer mortgage alternative and help bring stability to local markets and local economies,” said Iona Harrison, NAR spokesperson, in testimony today before the House Financial Services Subcommittee on Housing and Community Opportunity. Harrison’s view is shared by many at HUD, with Federal Housing Commissioner Brian Montgomery offering similar testimony before the House Financial Services Committee earlier in the week. “With expanded authority to set insurance premiums commensurate with risk, FHA could potentially assist tens of thousands more borrowers who need an exit strategy from their subprime mortgages,” he said.