Department of Housing and Urban Development proposing changes to the Federal Housing Administration to decrease the chances of more families going into foreclosure.
Below is the full text of Secretary Jackson's letter to Senator Dodd and Representative Frank:
September 5, 2007
Dear Chairmen Frank and Dodd,
With Congress returning this week from its August recess, I am writing to urge you to make passage of a Federal Housing Administration (FHA) reform bill, a top legislative priority for the fall session. A modernized FHA is a critical component of the Administration's efforts to help more American families keep their homes during the current market turmoil.
On Friday, August 31, I joined President Bush and Treasury Secretary Henry Paulson in announcing FHASecure, a plan to allow the Federal Housing Administration to make it easier for families with strong credit histories who had been making timely mortgage payments before their loans reset - but are now in default - to qualify for refinancing. FHASecure will bring stability to the housing market and give eligible families, who were in good financial standing before their loans reset, a chance to keep their homes.
According to industry estimates, there are just under 2 million resets due in the next two years. About one quarter, or 500,000 of those mortgages are going to default. Under FHASecure, we can help approximately half or 240,000 of those hard-working families stay in their homes without using any taxpayer dollars. If Congress approves legislation to modernize FHA, as the President and I have called for, we could help another 200,000 families get into a safe, fair, and affordable FHA-backed loan.
I know you share my strong support for modernizing FHA. With many more families facing increased mortgage payments every day, the time to act is now. Please know I stand ready to work with you to pass a bipartisan, comprehensive FHA modernization bill that will help many families realize and maintain the American Dream of homeownership.
Sincerely,
Alphonso Jackson
###
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
Comments