[Congressional Record Volume 156, Number 87 (Thursday, June 10, 2010)]
[Extensions of Remarks]
[Pages E1068-E1069]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         FHA REFORM ACT OF 2010

                                 ______
                                 

                               speech of

                         HON. JOHN CONYERS, JR.

                              of michigan

                    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. CONYERS. Madam Chair, I rise in strong support of H.R. 5072, the 
``FHA Reform Act of 2010.'' This bill will make essential reforms that 
are needed to strengthen the financial footing of the Federal Housing 
Administration, which helps provide mortgage insurance to expand 
homeownership opportunities for thousands of Americans each year.
  Passage of H.R. 5072 will enhance the FHA's authority to crack down 
on fraudulent lenders and those who violate their loan requirements. 
Clearly, the time has come for the federal government to provide much 
needed oversight of unscrupulous participants in the mortgage lending 
industry.

[[Page E1069]]

  FHA has helped 37 million Americans buy homes since 1934, and is 
filling a vital role in the nation's economy by providing crucial 
mortgage insurance at a time when the private sector has pulled back 
from the mortgage market. Because of the ``FHA Reform Act of 2010,'' 
FHA will be able to put itself on strong financial footing so that it 
can continue providing American families with the necessary financial 
backing to become home owners--the foundation of the American dream.
  H.R. 5072 also requires the FHA to improve its internal reporting 
systems to better manage risk and to provide transparent data to the 
public and Congress. This includes better monitoring of early defaults 
and claims, tracking mortgage information by loan servicer, and 
requiring a Government Accountability Office study on FHA. These kinds 
of reforms will make the FHA a more efficient, cost-effective, and 
sustainable program in the long run, and hopefully allow more families 
to become homeowners.
  The bill is supported by a range of organizations including the 
National Urban League, the National Association of Realtors, the 
National Council of La Raza, the Mortgage Bankers Association, the 
National Community Reinvestment Coalition, and the National Association 
of Home Builders.
  I encourage my colleagues to support the bill.

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