Washington Update - 04/11/2006 (Plain Text Version)

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Immigration Bill Sidetracked in Senate

After a bipartisan group of senators announced a major compromise last Thursday on a reform measure that would benefit an estimated 11 million illegal immigrants in the U.S., procedural and partisan wrangling shelved the measure, perhaps indefinitely, and at least through the two-week congressional spring recess.

The compromise plan proposed by Senators Chuck Hagel (R-NE) and Mel Martinez (R-FL) would have created a three-tier approach to illegal immigrants now in the U.S. Those here for more than five years would be offered legal status; those here two years to five years would be eligible for a temporary worker program; and those here less than two years would have to return to their countries of origin and apply for a temporary work visa from their home country, though they would not be guaranteed acceptance into the program.

Senate leaders believed the Hagel-Martinez plan had sufficient bipartisan support to be passed, but the measure was derailed by procedural roadblocks. Senate Democrats refused to allow several amendments to be offered on the Senate floor, fearful that they would significantly alter the nature of the bill and that Democrats up for re-election this year would be placed in the position of having to take roll call votes on some tough border security issues. Angered by the Democrats’ efforts to stop consideration of the amendments, the Republicans voted on April 7 against invoking cloture on the bill, preventing it from moving forward. The 60-38 vote fell closely along party lines.

Senate Judiciary Chairman Arlen Specter (R-PA) said he intends to introduce the Hagel-Martinez plan as a stand-alone bill after the Senate returns from its spring recess. See the April 10 issue of Nation’s Building News Online for more details or contact Jenna Morgan Hamilton at 800-368-5242, x8407.

NAHB Urges Congress to Adopt FHA Reforms

NAHB Executive Vice President and CEO Jerry Howard testified last week before the House Financial Services Committee's Housing and Community Opportunity Subcommittee in support of the Administration's recently released reform proposal to revitalize the Federal Housing Administration's (FHA) single-family mortgage insurance programs. Testifying along with FHA Commissioner Brian Montgomery, Howard highlighted the statutory and regulatory constraints that have limited the FHA's ability to respond to the needs of borrowers, while supporting the broader authority and reforms included in the Administration's reform proposal.

Specifically, Howard urged Congress to take the following actions included in the new reform proposal:

Increase the current limit for FHA-insured mortgages.
Grant the FHA flexibility to establish downpayment requirements for its single-family programs, including zero-downpayment options, to more fully address market needs.
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 to consolidate all of the single-family mortgage insurance programs under one section of the National Housing Act.

Following the hearing, a bipartisan group of committee members led by Subcommittee Chairman Bob Ney (R-OH) and Ranking Member Maxine Waters (D-CA) formally introduced the Administration's reform plan as H.R. 5121, the "Expanding American Homeownership Act of 2006." NAHB staff will continue to monitor this debate, providing support and expertise where needed. For more information, contact Scott Meyer at x8144.
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