A Bush administration reform proposal that would allow the Federal Housing Administration to charge risk-based mortgage insurance premiums is not going down well with Democrats and consumers groups.Rep. Barney Frank, D-Mass., said he is in "overwhelming agreement" with the administration FHA reform package, except for charging lower-income subprime borrowers higher mortgage insurance premiums. The ranking Democrat on the House Financial Services Committee recommended that the premiums be cross-subsidized with other funds. Meanwhile, several Republicans on the committee want FHA Commissioner Brian Montgomery to increase the participation of mortgage brokers in the FHA program. The mortgage brokers have concerns about the FHA annual audit requirement, Mr. Montgomery said. "We are in communication with them to see if we can resolve that," he said. The Bush administration formally released its FHA reform package April 5. The legislative proposal would increase the FHA single-family loan limits and allow the FHA to insure 40-year mortgages for the first time.

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