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Looks like there is hope after all. I had feared that FHA mortgage reform would die a slow death once the FHA limits were raised as part of the recent fiscal stimulus package. But it looks like FHA reform is actually moving ahead.

According to Congressional Quarterly, (in an article highlighted on the KnowledgePlex website since viewing the original requires a subscription) the major stumbling block to moving forward with the bill has been the House of Representatives’ addition of an affordable housing trust fund to their version of the bill. An agreement has been reached to move ahead without either establishing nor pre-empting the fund.

According to the article, the only remaining sticking point is the difference between the FHA loan limits set out in the bills. The House version raises the limits much higher than the $417,000 set out in the Senate bill.

Though it appears the details have been worked out, the article does not address the fact that the House bill allowed for 100% loan to value financing and replaced the net worth requirement for FHA lenders with a bonding requirement. Judging from questions that I receive, there is much more curiosity in the mortgage industry about these two items than there was about the trust fund.

Hopefully, news on these items will filter out over the next few days.

FHA Guidelines: FHA Down Payment Assistance On The Chopping Block?


Related posts:

  1. FHA Mortgage Reform: When Will Petty Politics End?
  2. FHA Mortgage Reform: The Bill Is Heading For A Vote!
  3. FHA Mortgage Reform: More Petty Politics In Action
  4. Update: FHA Reform Bill Passes The Senate
  5. FHA Mortgage Reform Newsflash: Finally – Some Good News!

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Filed under: Down Payment Assistance • FHA Updates • H.R. 1852 • HUD Regulations • Industry Information

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