Bill Would Self-Fund Single-Family Rural Program

Rep. Paul Kanjorski, D-Pa., has introduced a bill to make the Rural Housing Service single-family program self-funding by imposing higher loan guarantees fees. The bill (H.R. 5017) would increase the upfront guarantee fee to 3.5% and allow the Agricultural Department to assess a 0.5% annual fee on the loan balance. "This change will cost taxpayers nothing and ensure families in rural areas can continue to access affordable mortgages," Rep. Kanjorski said. The second-ranking Democratic on the House Financial Services Committee noted that more and more rural families are turning to the RHS program in these difficult economic times and the RHS program is running out of loan commitment authority. RHS has $13.1 in funding authority for fiscal year 2010, which ends Sept. 30, and less than $3 billion is left. "Rather than relying on ad hoc federal funding, my bill would transform the (RHS) program and allow it to pay for itself," the Pennsylvania congressman said. House Financial Services Committee chairman Barney Frank, D-Mass., said the committee would act on the bill soon.