Last week House Financial Services Chairman Hensarling
(R-TX) introduced a comprehensive discussion draft on Housing Finance Reform.
The draft bill, called the Protecting American Taxpayers and Homeowners (PATH)
Act, includes reforms to FHA, the GSEs, and the financial regulatory law known
as the Dodd-Frank Act.
The National Association of REALTORS® (NAR) is still reviewing the legislation which
will be the subject of a legislative hearing on July 18. Based on initial
analysis, NAR has a number of concerns. The bill does not provide for a federal
guarantee for a secondary mortgage market. The bill also contains
significant changes to the FHA program that include income targeting,
downpayment increases, and loan limit decreases. The bill does include some
positive changes including language to fix the definition of fees and points in
the ability to repay/qualified mortgage (QM) regulation so that consumers have
more options when choosing a lender, and language related to mortgages seized
under eminent domain.
In addition, Senate Banking Chairman Johnson (D-SD) and
Ranking Member Crapo (R-ID) announced an outline for their own FHA reform bill.
The bill is focused on solvency issues and does not include comprehensive
reform. The bill is similar to the NAR-supported legislation that passed the
House last year. They expect to introduce the legislation this week.
NAR will continue to work with Congress to pass
responsible housing finance reform.
Author:Michael Bray Phone: 915-549-1770 Dated: July 18th 2013 Views: 2,108 About Michael: ...
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