U.S. senator to bring FHA bill to Senate floor for vote

WASHINGTON Thu Dec 13, 2012 5:09pm EST

WASHINGTON Dec 13 (Reuters) - A bill aimed at placing the U.S. Federal Housing Administration on firmer financial footing is expected to reach the U.S. Senate floor for a vote before lawmakers leave Washington for the holidays, according to a letter obtained by Reuters.

Senator Banking Committee Chairman Tim Johnson said he will introduce an FHA bill that has already passed the House of Representatives. He is trying to bypass the usual committee process and is pressing for a speedy vote with little or no debate.

"I believe this is a necessary and responsible step to protect the taxpayers given the short amount of time left in the legislative session," Johnson said in the letter to Republican Representative Spencer Bachus.

The agency is facing a projected $16.3 billion deficit in its insurance fund, which has raised concerns it will need a taxpayer bailout. The bill is aimed at reducing the FHA's need for a cash infusion.

The legislation, which cleared the House with an overwhelming margin, would set a minimum rate for the annual premiums paid for mortgage insurance, allow the FHA to exclude poorly performing lenders from the program and tighten the agency's oversight of delinquent loans, among other measures.

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Comments (1)
JennieDVDI wrote:
The housing market is beng flooded with easy money from the Feds right now. Mortgage rates are seriously at historically low rates. Unfortunatley most Americans will have problems taking full advantage of the rates because they have poor credit. Thanksfully there are places like Lexington Law that specialize in fixing one’s credit report and helping individuals take advantage of thee historically low rates.

Dec 13, 2012 5:33pm EST  --  Report as abuse
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