[Congressional Record Volume 156, Number 95 (Wednesday, June 23, 2010)]
[Extensions of Remarks]
[Pages E1184-E1185]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         THE FEDERAL HOUSING ADMINISTRATION REFORM ACT OF 2010

                                 ______
                                 

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                        Wednesday, June 23, 2010

  Ms. McCOLLUM. Madam Speaker, I rise in strong support of the Federal 
Housing Administration Reform Act of 2010 (H.R. 5072). This legislation 
will help ensure the availability of affordable home loans while 
safeguarding the interests of the American taxpayer.
  The Federal Housing Administration (FHA) has played a crucial role in 
stabilizing the nation's housing market during the current recession. 
Since the financial crisis and credit crisis that followed, nearly 40 
million qualified Americans became homeowners and arne insurance 
through the FHA. The FHA was critical to keeping mortgage loans flowing 
to credit-worthy home buyers during the foreclosure crisis. As private 
lenders fled the housing market, the insurance provided by the FHA 
helped prevent the housing decline from becoming even more severe.
  The FHA Reform Act of 2010 will strengthen the FHA loan insurance 
program and help keep credit available and affordable to responsible 
homebuyers. Over the last year, the FHA implemented a number of policy 
changes aimed at curbing risk and increasing its capital reserves. This 
legislation builds on these reforms and helps reduce risk by increasing 
net worth requirements for FHA loan originators

[[Page E1185]]

and providing the FHA with authority to prevent fraudulent lending. In 
addition, this bill increases accountability by requiring the FHA to 
modernize its reporting systems to better manage risk and to provide 
transparent data to the public and Congress.
  This legislation helps restore fiscal accountability by reducing our 
deficit by $2.5 billion over five years.
  The Federal Housing Administration Reform Act of 2010 makes essential 
reforms to strengthen the financial footing of the Federal Housing 
Administration and stabilize the mortgage market. I urge my colleagues 
to support this bill.

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