The Senate Banking Committee held a hearing last week on S. 1376, the “FHA Solvency Act of 2013,” introduced by Senators Johnson (D-SD) and Crapo (R-ID). This bill provides promotes FHA’s financial solvency with common sense financial reforms, while still retaining FHA’s critical historic mission.
The bill is very similar to legislation that passed the House last year by a vote of 402-7. It gives FHA the tools to better manage their financial position, while providing additional protections for taxpayers. In a letter of support for the bill, NAR President Gary Thomas said, “While ensuring that the FHA program remains affordable and available to responsible and qualified homebuyers, the Act also includes a number of critical measures that will protect taxpayers during future financial crises.
FHA needs legislation to rebuild its capital reserves, protect taxpayers, and continue its mission of providing responsible qualified borrowers with affordable mortgage financing. NAR believes that the FHA Solvency Act of 2013 is that legislation.”