September 11, 2012
On September 11, the U.S. House of Representatives approved by a large margin the “FHA Emergency Fiscal Solvency Act of 2012,” introduced by Rep. Judy Biggert (R-IL), to ensure the fiscal solvency of the Federal Housing Administration (FHA). The bill, H.R. 4264, would (i) give the Department of Housing and Urban Development (HUD) authority to charge a maximum premium of 2.05 percent annually on mortgage insurance; (ii) establishe a minimum annual premium for mortgage insurance of 0.55 percent; (iii) bar unscrupulous lenders from participating in the program; (iv) require payment of losses to FHA by fraudulent lenders; (v) modify the FHA’s internal financial controls, transparency and disclosure requirements; and (vi) require the GAO to conduct an independent safety and soundness review of the FHA.
FHA Emergency Fiscal Solvency Act of 2012
Rep. Biggert’s Press Release