FHA Reform Awaiting Senate Action

NAR reported on August 2 that the House passed a stand-alone bill to increase FHA's annual premiums. FHA needs to increase premiums to restore their capital reserves fund that had fallen to .55% from the required 2%. However, NAR supports the full package of reforms included in H.R. 5072, the "FHA Reform Act of 2010", which passed the House earlier this month by a vote of 406-4. HR 5072 allows FHA to increase annual premiums, which in turn will allow them to decrease the upfront premium. The bill also includes significant lender enforcement, and increases FHA's ability to get rid of bad actors. HR 5072 is awaiting action in the Senate.