The Federal Housing Administration has been urging Congress to expand its loan buyback powers for years and now it might be close to reaching its legislative goal.

The Senate Banking Committee approved a FHA reform bill (S. 1374) last July that expands the agency’s indemnification powers to seek buybacks or recover loan losses from all its direct endorsement lenders. Currently, FHA’s indemnification authority is limited to its largest originators that participate in the lender insurance program.

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