FHA reform passes through House Committee
By admin | May 3, 2007
The much debated FHA reform bill has passed its first steps towards helping many subprime borrowers from being foreclosed upon.
In the Financial Services Committee of the House of Representatives the bill was approved by a vote of 45-19. This bill is set to reform the Federal Housing Administration which should benefit low-income borrowers to qualify for low interest rate loans.
Many borrowers were passed over by the FHA because they lacked the necessary 3% FHA down payment. This led to an increase of lower income families going to the riskier subprime loans thus leading to an increase in foreclosures throughout the United States.
A bill similar to this passed through the US House last summer with a vote of 415 to 7 but failed to make it out of the US Senate.
It appears that once again FHA reform rests in the hands of the Senate who have yet to take up the notion of FHA reform.
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