[Congressional Record Volume 156, Number 87 (Thursday, June 10, 2010)]
[Extensions of Remarks]
[Page E1065]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         FHA REFORM ACT OF 2010

                                 ______
                                 

                               speech of

                             HON. JOE BACA

                             of california

                    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. BACA. Madam Chair, I rise in strong support of H.R. 5072, the FHA 
Reform Act.
  The failed economic policies of the Bush administration and 
Republican-controlled Congresses, led this country into a deep 
recession where we experienced serious drops in housing value and 
unemployment.
  The economic conditions caused the FHA to dip below acceptable 
capital reserves numbers.
  But thanks to the leadership of HUD Secretary Donovan and FHA 
Commissioner Stevens, FHA has continued to operate in a safe and stable 
manner, continuing to provide mortgage insurance to credit-worthy 
homeowners.
  Since 1934, the FHA has played a vital role in the nation's economy 
helping over 37 million Americans achieve the dream of homeownership.
  FHA's role can be seen clearly today as they play a vital stabilizing 
role in the market and support homeownership for first-time buyers and 
underserved markets.
  As our economy continues along the path of recovery, it is likely 
that the FHA will continue to play a large role in our housing market.
  H.R. 5072 will make essential reforms to the FHA program, 
strengthening their finances, improving risk management, and rooting 
out the bad actors that helped cause this crisis in the first place.
  The bill before us calls for an increase in FHA's authority to raise 
annual premiums enabling FHA to decrease entry barriers and up-front 
premiums.
  This bill also enables the FHA to go further in the action they have 
already taken in increasing the FHA fund at an approximate value of 
$300 million per month.
  Finally this bill will also strengthen FHA's ability to ensure 
responsible lending activity by withdrawing from lenders that 
repeatedly fail to follow responsible underwriting and financial 
standards.
  I want to thank Ms. Waters, Ms. Capito, and Mr. Frank for their 
leadership and hard work in bringing this bill to the floor.
  I encourage my colleagues to follow the leadership of Secretary 
Donovan and Commissioner Stevens and vote ``yes'' on H.R. 5072.

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