Speaking at the National Association of Realtors' (NAR) Midyear Legislative Meetings & Trade Expo in Washington, D.C., this week, Federal Housing Administration (FHA) Commissioner David H. Stevens appealed to attendees to support the passage of H.R.5072, the FHA Reform Act of 2010.
‘There would be no housing market recovery without FHA; however, the program is at risk,’ Stevens said. ‘We cannot continue to operate under the current construct if we don't shore up its fiscal situation. We need to make FHA stronger.’
H.R.5072 would allow the FHA to hold lenders accountable for the loans they underwrite and originate, and grant the insurer the authority to adjust the annual mortgage insurance premium and reduce borrowers' up-front mortgage insurance premiums.
"Adopting these changes during the current fiscal year would replenish FHA's capital reserves and strengthen its financial position," Stevens said.
During his speech, Stevens also credited increased home-buyer demand, brought about by the home-buyer tax credits, and the federal government's purchase of mortgage-backed securities for helping restore consumer confidence.
"Home prices and sales are beginning to recover, inventories are down, private capital is beginning to re-emerge, investor confidence is coming back and the job market is showing signs of improvement," he told the audience. "These all show renewed confidence in the housing market. We need to finish the job now and make the housing recovery sustainable and keep the economy on the right track."
SOURCE: National Association of Realtors