The House Financial Services Committee will roll out a bill to scale back the Federal Housing Administration single-family program in the “next month or so,” according to Rep. Randy Neugebauer, R-Texas.
“FHA has moved way beyond their original charter,” the Texas congressman said Tuesday.
In speaking at a National Association of Realtors conference in Washington, the subcommittee chairman noted that FHA has a higher lending limit ($729,750) than Fannie Mae and Freddie Mac’s $625,500 lending limit.
FHA should be focused on financing “first-time and low- and moderate-income homebuyers,” Neugebauer said.
When it comes to Fannie and Freddie, the Texas congressman said, “We need to dial their presence back” to make room for private capital to return to the mortgage market.
House Financial Services Committee chairman Jeb Hensarling, R-Texas, has indicated his plans to pass a FHA reform bill before August.
It is unclear if the committee chairman will introduce a Fannie/Freddie reform bill before the August recess.