U.S. House Approved Expansion Of FHA
In an effort to help struggling home owners faced with foreclosure, the United States House of Representatives voted to expand the Federal Housing Administration (FHA), the Boston Herald reported September 18, 2007.
"The bill, which passed the House, 348-72, would allow the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, to back refinanced loans for tens of thousands of borrowers who are delinquent on payments because their mortgages are resetting to sharply higher rates from low initial 'teaser' levels."
The bill also included $300 million in grants for rental housing and homeownership assistance for low-income families.
"An estimated 2 million to 2.5 million adjustable-rate mortgages are scheduled to 'reset' this year and next, jumping from low 'teaser' rates for the first two or three years to much steeper rates that could cost borrowers their homes. The wave of resets could crest during the presidential and congressional election campaigns next year, and the issue has brought politically charged debate in recent weeks over possible responses by the government."
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