Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
FHA Commissioner Backs Senate Enhancements
WASHINGTON (7/25/13)--The Federal Housing Administration Solvency Act of 2013 "addresses many longstanding legislative requests of the [FHA] in an evenhanded and forward-looking manner," FHA Commissioner Carol Galante said during a Wednesday Senate Banking Committee hearing.

Galante said the bill, which was introduced in draft form on July 15 by Sens. Tim Johnson (D-S.D.) and Mike Crapo (R-Idaho), would give the U.S. Department of Housing and Urban Development "the tools to ensure a fiscally sound and vibrant FHA continues to support responsible homeownership and affordable housing for generations to come."

Such tools include strengthened underwriting standards, enhanced lender accountability measures, and reforms to the FHA's reverse mortgage program. (For more on the bill, see July 16 News Now story: House, Senate Keep Housing-GSE Reform As Hot Topic.)

While Galante supports the Senate FHA bill, she also identified topics that should be further discussed as the bill moves forward, including ensuring mortgage servicers are held accountable for their performance, and allowing FHA to shift servicing to a specialized sub-servicer if original servicers cannot fulfill their obligations under the contract of insurance. "This additional authority would minimize losses to the Fund by facilitating more effective loss mitigation, yielding better results for both borrowers and FHA," Galante said.

The committee should also work with the FHA to craft language that best facilitates recapitalization using the full range of options available, Galante added.

An increasingly complex mortgage market, aging FHA systems and infrastructure, a need for additional skills and expertise, and difficulty responding quickly to major risk issues as a result of contractual and statutory limitations are other issues that must be dealt with, Galante said.

For more on the hearing, use the resource link.
Other Resources

Hearing Information
RSS print
News Now LiveWire
Housing starts swell in July #NewsNow #Market http://t.co/EdKIhXEj9l
15 hours ago
Consumer inflation tapers after spring surge #NewsNow #Market http://t.co/bgvQd8fyuF
15 hours ago
Have you read this one today in #NewsNow? What NCUA examiners look for on cybersecurity efforts: NCUA Report http://t.co/4g5wUavUAe
16 hours ago
.@CFPB sets $2.75M fine v. auto finance co. it says "distorted consumer credit records for years": TX-based First Investors Fin. Serv. Group
17 hours ago
University, college #creditunions add fin ed to higher ed. See #NewsNow http://t.co/NsyshwHPhg
18 hours ago