FHA Secure Expansion

In a two-day hearing on proposed housing legislation, the FHA discussed proposed expansion of FHASecure, as well as the details of the new housing bill. FHA’s budget has recently taken a hit because of the assistance it has provided to homebuyers making down payments, as the loans that have been given to these homebuyers have seen high delinquency and foreclosure rates. In order to sustain the life of the FHA, officials call for an end to down payment assistance from sellers or other entities that might benefit from the transaction, and Congress has also been asked to back FHA’s ability to maintain its current mortgage insurance premium structure that directly parallels the risk of the insured loans. Further hearings continue to take place regarding the state of the housing market and the FHA.

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