FHA, OFHEO Receive Funding Support

The Senate has passed the $820 billion omnibus appropriations bill that provides additional funding for the Office of Federal Housing Enterprise Oversight and new loan commitment authority for the Federal Housing Administration multifamily program.Once the President signs the bill, the Department of Housing and Urban Development will be able restart the FHA multifamily, 203(k) home renovation, reverse mortgage and condominium loan programs, which have been shutdown since Jan. 14. Since last summer, FHA's General Insurance/Special Risk Insurance fund has run out of loan commitment authority three times. The appropriations bill also provides OFHEO with $7.5 million in additional funding to help cover the costs of its special investigation of Freddie Mac's accounting scandal and to initiate a special examination of Fannie Mae's accounting practices and systems. The additional funding will also allow the agency to hire additional staff.