The House Financial Services Committee gave voice vote approval to the FHA Emergency Fiscal Solvency Act of 2012, which is designed to ensure the financial stability of the Federal Housing Administration (FHA).
‘The financial condition of the FHA continues to decline, threatening the stability of our housing market and taxpayers,’ says Rep. Judy Biggert, R-Ill., the sponsor of the bill. ‘We cannot afford another Fannie- and Freddie-style bailout. This administration needs to enforce stronger standards and create room for the private sector to replace taxpayers as the primary source of funding.’
Biggert adds that the legislation would provide the U.S. Department of Housing and Urban Development with the ’emergency tools to protect the solvency of the FHA.’ The bill will now be forwarded to the full House of Representatives.