Senate Democrats

Reid Statement On Federal Housing Administration Reform Bill

Washington, DCSenate Majority Leader Harry Reid made the following remarks today after the Senate Banking Committee approved theFHA Modernization Act of 2007 by a vote of 20 to 1:

“Today the Senate Banking Committee took an important step in addressing some of the problems that have arisen in our nation’s housing and mortgage markets.  The FHA Modernization Act of 2007 is designed to bring added flexibility to the Federal Housing Administration so that more American families will have more options for safer mortgage products.  It raises the loan limits for FHA insurance eligibility, thus increasing the availability of safe, FHA-backed loans in the marketplace, and adjusting the amount and manner in which FHA-insurance premiums are paid by mortgage borrowers.  These changes should make the FHA program a better option for both new homeowners and those borrowers looking to refinance their mortgage.  I applaud the Senate Banking Committee’s action in ordering that this important legislation be reported to the full Senate.”