Wednesday, July 30, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Realtors applaud FHA for taking steps to improve its financial stability

By
From page HS17 | April 19, 2013 |

National Association of Realtors

WASHINGTON, D.C. — While the Federal Housing Administration still faces challenges ahead, the agency has already taken a number of significant steps to mitigate risk and increase the solvency and strength of the mortgage-insurance fund. That’s according to National Association of Realtors President Gary Thomas, who recently testified before the U.S. House Financial Services Subcommittee on Insurance, Housing and Community Opportunity about the future of the FHA.

“Realtors believe that recent increases to premiums, increased down payments for some borrowers and greater risk management controls will help to substantially improve the FHA’s financial condition,” said Thomas, broker-owner of Evergreen Realty, in Villa Park. “These changes combined with an improving national economy and rising home prices will surely help stabilize the fund so that FHA can continue to serve the needs of hardworking American families who wish to purchase a home.”

Thomas testified that FHA has also implemented a number of other measures to help improve the health of the fund, including hiring the agency’s first credit risk officer to help better manage risk, implementing credit score floors, and instituting significant lender enforcement and oversight measures to increase the return to the fund.

FHA sustained housing markets nationwide during the economic and housing downturn, and like other holders of mortgage risk, it incurred financial losses as a result of employment and market conditions that led to increased foreclosures. However, had FHA not stepped in to fill the market void, many families would have been unable to purchase homes, housing values could have dropped an additional 25 percent, and the country would be much further from a recovery, said Thomas.

FHA continues to be one of the primary sources of mortgage financing available to families today as private capital slowly makes its way back into housing finance markets. As housing markets continue to stabilize and improve and new mortgage regulations are finalized, NAR anticipates that the private mortgage market will return and FHA’s market share will return to traditional levels.

Increased private capital in the mortgage market doesn’t obviate the need for additional reforms to FHA to further enhance and protect the availability of mortgage credit so that the fund can maintain its vital role to home buyers, said Thomas. NAR strongly supports legislation that would give FHA greater flexibility to quickly change program requirements and help protect the fund from losses. NAR also supports legislation that would allow FHA to improve its enforcement and oversight of lenders.

“Realtors urge Congress to quickly consider these bills to ensure FHA has the tools it needs to be able to continue to serve its mission of providing home buyers with safe, affordable financing in all markets,” said Thomas.

Comments

comments

.

News

District 2 candidate statements tell of goals

By Dawn Hodson | From Page: A1

 
Sand Fire nears containment: 66 structures destroyed

By Cole Mayer | From Page: A1 | Gallery

 
Quarter-acre fire in Kelsey

By Rebecca Murphy | From Page: A3

Schedule for Highway 50 blasting closures

By News Release | From Page: A3

 
Tails wagging over dog park approval

By Julie Samrick | From Page: A3

.

Opinion

My Turn: Privatization of public services

By Mark Belden | From Page: A4

 
Policy book

By Mountain Democrat | From Page: A4

 
.

Letters

District 2 supervisorial special election

By Letters to the Editor | From Page: A5, 4 Comments

 
GDPUD management report

By Letters to the Editor | From Page: A5

Piano replaced

By Letters to the Editor | From Page: A5

 
Comments sign-in policy

By Letters to the Editor | From Page: A5, 1 Comment

Save the Guinea Worm

By Letters to the Editor | From Page: A5, 1 Comment

 
Large bangs

By Letters to the Editor | From Page: A5, 2 Comments

Private property gets no respect

By Letters to the Editor | From Page: A5, 2 Comments

 
.

Sports

Ex-Bruin lends a helping hand

By Steven Shaff | From Page: A8 | Gallery

 
Sierra Sharks finish middle of the pack

By Democrat Staff | From Page: A8

Roundup: July 29, 2014

By Democrat Staff | From Page: A8

 
Taz pull through for SSL trophy

By Patty Pope | From Page: A8

.

Prospecting

Nuns discover a pleasant place

By Lexi Boeger | From Page: B1 | Gallery

 
Bargains can be found everywhere

By Democrat Staff | From Page: B2 | Gallery

At a glance: Game time

By Mimi Escabar | From Page: B2

 
Barbecue dinner to benefit Blue Star Moms

By Mount Aukum Winery | From Page: B2

Stagecoach story takes riders on a trip

By Wendy Schultz | From Page: B3

 
Help needed to make cool ties

By Sew 4 | From Page: B3

Stroke and osteoporosis screenings planned

By Life Line Screening | From Page: B3

 
Master Food Preservers: Tomato time

By Monique Wilber | From Page: B4

 
Gold Rush Days activities cancelled this year

By Sacramento Convention And Visitors Center | From Page: B4

Build an author platform at the Library

By El Dorado | From Page: B5

 
Sacramento area museums offer summer fun

By Sacramento Association Of Museums | From Page: B5

.

Essentials

Weather stats 7-29-14

By Michael Raffety | From Page: A2

 
Building permits 6/2-6/2014

By Michael Raffety | From Page: A2Comments are off for this post

Crime Log: July 17

By Cole Mayer | From Page: A2

 
.

Obituaries

Wallace Murrel Thomas

By Contributor | From Page: A2

 
Merlyn Wilbur Adams

By Contributor | From Page: A2

.

Real Estate

.

Comics

.

Women’s Health

Love the skin you’re in

By Noel Stack | From Page: WH4

Dump stress and improve your health, productivity

By Wendy Schultz | From Page: WH7Comments are off for this post

Women’s Health Expo

By Marshall Medical | From Page: WH8

Find the confidence you need to fight back

By Special to the Democrat | From Page: WH12

Our choices directly affect our health

By Special to the Democrat | From Page: WH14

They’re NOT your mother’s hearing devices!

By Marshall Medical | From Page: WH17