House Approves FHA Single-Family Reform Package
With the full support of the nation’s home builders, the U.S. House of Representatives on July 25 voted overwhelmingly to approve broad-based measures that would revitalize and reform the Federal Housing Administration's single-family mortgage insurance programs. H.R. 5121, the Expanding American Homeownership Act of 2006, includes several provisions supported by NAHB.

Prior to the vote, NAHB sent a letter to the full House urging lawmakers to approve the legislation and  also contacted every member of the Republican Study Committee to urge support for the bill and explain the importance of an invigorated FHA. The bill, which was subsequently approved by a 415-7 vote, would:

•  Increase the limit for FHA-insured mortgages in high-cost areas
• Grant the FHA flexibility to establish zero or reduced downpayment requirements for its single-family programs 
• Allow the FHA to establish a risk-based mortgage insurance premium pricing structure
• Permit the FHA to extend the maximum loan maturity to 40 years
• Revise the FHA’s requirements for condominium loans, which are often burdensome and differ significantly from mortgage loans that are secured for detached single-family homes

NAHB will now urge the Senate to approve companion legislation S. 3535. To read the legislation, click here and enter the bill number in the box at the center of the page. For more information, e-mail Scott Meyer, or call him at 800-368-5242 x8144.

Bill Would Lift Multifamily Loan Limits in High-Cost Areas
The House Financial Services Committee on July 26 approved legislation that would address housing cost discrepancies across the nation by empowering the secretary of Housing and Urban Development to increase the Federal Housing Administration's multifamily loan limit in high-cost areas by up to 170%. Sponsored by Rep. Gary Miller (R-CA), H.R. 5503, the FHA Multifamily Loan Limit Adjustment Act of 2006, would allow the HUD secretary to raise the loan limit up to 215% on a project-by-project basis.

The measure would allow major urban markets — such as San Francisco, New York, Chicago and Boston — which had previously been unable to take advantage of the FHA multifamily mortgage insurance programs, to now be able to provide much-needed new multifamily housing.

To ensure a strong committee vote, NAHB spearheaded a letter of support signed by seven housing industry groups. NAHB will urge the Senate to introduce companion legislation. To read the legislation, click here and enter the bill number in the box at the center of the page. For more information, e-mail Scott Meyer, or call him at 800-368-5242 x8144. [return to top]