Frank Sees FHA Reform Bill Delay

Because the appropriations process is crowding out other legislation, House Financial Services Committee Chairman Barney Frank, D-Mass, says he believes passage of a Federal Housing Administration reform bill will have to wait until Congress returns from its August recess in September.During floor debate on a housing resolution, Rep. Frank said a dispute over origination fees on FHA-insured reverse mortgages held up action on the FHA bill until the July 4th recess. That has been resolved, he said, but added that "we then ran out of time because of the appropriation process." The House Financial Services Committee approved the FHA reform bill (H.R. 1852) on May 3. The reforms would increase the FHA single-family loan limits and allow the FHA to charge risk-based premiums and offer zero-downpayment loans. The Senate Banking Committee has scheduled its first FHA hearing for July 18, and FHA supporters are hoping it will lead to the introduction of an FHA reform bill in the Senate soon.