FHA Reform Prospects Brighten in Senate

The prospects for Senate passage of a Federal Housing Administration reform bill have improved greatly now that Sen. Tom Coburn, R-Okla., has signaled a willingness to allow a vote if his concerns about FHA reverse mortgages are addressed.Sen. Coburn has been holding up passage of the FHA bill for several weeks. But under pressure from fellow Republicans on the Senate Banking Committee, he finally relented provided he can offer an amendment. The amendment is expected either to restore a cap on the number of reverse mortgages the FHA can insure or require the agency to notify the banking committee if losses on the reverse mortgage program outstrip revenues. A vote on the FHA bill could come at any time.