[Congressional Record Volume 156, Number 87 (Thursday, June 10, 2010)]
[Extensions of Remarks]
[Pages E1063-E1064]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         FHA REFORM ACT OF 2010

                                 ______
                                 

                               speech of

                         HON. JAMES R. LANGEVIN

                            of rhode island

                    in the house of representatives

                        Wednesday, June 9, 2010

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 5072) to 
     improve the financial safety and soundness of the FHA 
     mortgage insurance program:

  Mr. LANGEVIN. Madam Chair, I rise in strong support of H.R. 5072, the 
FHA Reform Act, which will strengthen the rules and financial stability 
of the Federal Housing Administration's programs. H.R. 5072 will help 
tighten FHA underwriting standards, rebuild its capital reserves and 
assist in the recovery of the housing market. This measure has 
bipartisan support and has received numerous endorsements from housing 
and real estate organizations.
  H.R. 5072 would empower FHA to improve its financial position by 
allowing the agency to adjust their premium structure for new 
borrowers, while still providing affordable mortgage insurance to the 
individuals FHA is intended to serve. This measure also provides FHA 
with enhanced authority to terminate FHA lenders if evidence of fraud 
or noncompliance is discovered. It will also improve FHA's internal 
reporting systems to better manage risk and provide transparent data to 
the public and to Congress.
  Over the years, FHA has played a key role in supporting housing 
finance opportunities to underserved families and assisting first time 
homebuyers. Most recently, FHA has helped stabilize our housing market, 
and reform is needed to strengthen its solvency. FHA has already 
implemented an unprecedented number of credit policy and risk 
management changes to ensure its effectiveness and soundness and to 
protect the American taxpayer. The FHA Reform Act builds upon these 
necessary changes.

[[Page E1064]]

  In my home State of Rhode Island, we were hit early and hard by the 
housing and economic crises. We currently have the fourth highest 
unemployment rate and one of the highest foreclosure rates in the 
country. Congress has an important role to play in helping Rhode Island 
families regain financial ground, and this bill is an important 
ingredient in stabilizing our housing market. The FHA Reform Act will 
ensure that responsible families have the opportunity to purchase a 
home, but also put into place the appropriate measures to prevent 
future crises. I urge all my colleagues to support this bill.

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