Bill Sponsor: Rep. Maxine Waters (D-CA)
Status: Introduced on March 29, 2007 the bill passed the House on September 18, 2007. It currently awaits a vote in the Senate.
Stated Goal: To modernize and update the National Housing Act and enable the Federal Housing Administration to use risk-based pricing to more effectively reach underserved borrowers, and for other purposes.
Currently in order to offer FHA loans mortgage broker are required to provide audited financials. One provision in this Bill will allow mortgage brokers to obtain a $75,000 FHA Bond in place of audited financials. Many have felt that the cost having these financials prepared was too much for many brokers to justify and therefore limited the amount of FHA loans offered, limiting the effectiveness of the program. In short, it is hoped that this policy change will allow more people to get the assistance they need by enabling more mortgage brokers to offer these loans.
Please check back as we will follow the progress of this Bill and keep you updated.