FHA: MF Shutdown Possible

The Federal Housing Administration might have to shut down its multifamily program if, like last year, there is a surge in applications in August and September, according to FHA Commissioner John Weicher.The Bush administration has requested additional loan commitment authority for the multifamily program but appropriators are complaining that it came too late to do anything, with Congress set to adjourn for the August recess in a few days. Mr. Weicher told a House panel that the current $25 billion in loan commitment authority should be adequate to keep the MF program going through Oct. 1 when the new fiscal year begins. However, he reminded House subcommittee chairman Bob Ney, R-Ohio, that there was a shutdown last summer because of a surge in applications. As insurance against another shutdown, Rep. Ney is considering a stand-alone bill to provide the FHA General and Special Risk Insurance funds with $4 billion in loan commitment authority.