HUD Requests Additional FHA Commitment Authority

The Department of Housing and Urban Development is concerned the Federal Housing Administration may have to suspend its single-family loan program later this summer if Congress does not provide the agency with additional loan commitment authority. HUD has submitted a request to Congress for an additional $85 billion in commitment authority to keep the FHA mortgage insurance program running through September 30, a HUD spokesman said. Earlier this year, Congress authorized FHA to insure up to $315 billion in loans in fiscal year 2009, which ends Sept. 30. On June 16, HUD notified Congress that FHA had used up 75% or $236 billion of its commitment authority. As of June 30, FHA had endorsed 1.39 million single-family mortgages - up 83% compared to the first three quarters of FY 2008. The Obama administration is seeking $400 billion in loan commitment authority for FHA in FY 2010.