House Passes Bill To Modernize Federal Housing Administration

The U.S. House of Representatives today passed "The Expanding American Homeownership Act,” which will increase homeownership opportunities for millions of Americans by modernizing the Federal Housing Administration (FHA) and returning it to its traditional role as an important financing option in today's housing market.

"I applaud the House for passing this far-reaching legislation and express appreciation for the leadership provided by Representatives Bob Ney, Maxine Waters, Gary Miller, and Patrick Tiberi,” said Housing and Urban Development Secretary Alphonso Jackson.  "I expect the Senate to take similar action thanks to the efforts of Senator Jim Talent and the support of Senators Mel Martinez, Johnny Isakson, and Saxby Chambliss.”

"When FHA was formed in 1934, it was an historic event that made homeownership possible for people who had nowhere else to turn,” said Assistant Secretary for Housing-Federal Housing Commissioner Brian D. Montgomery.  "We are now closer to another landmark - a modernized, flexible FHA that can respond to the needs of today's low and moderate-income homebuyers who need a helping hand.”

The Expanding American Homeownership Act (H.R. 5121) will enable FHA to reach more prospective borrowers and allow millions more low- and moderate-income families to achieve the American dream of homeownership.  Many of these borrowers currently have little choice but to pay subprime rates because FHA lacks the ability to offer an affordable financing option.

FHA was created in 1934 to give homebuyers access to reasonably priced mortgages under fair terms.  Over the years, it has been able to help more than 34 million families become homeowners and now it needs to be able to adapt to today's marketplace.  This legislation will bring FHA into the 21st Century and offer hard-working Americans a variety of safe homeownership options at a fair price. Read more at hud.gov