Congress to Consider FHA Reform, Mortgage Insurance Hike

House Resolution (HR) 5072, the FHA Reform Act of 2010, was reported to the House of Representatives Tuesday and could begin facing votes as early as this week. The bill, which establishes a handful of new Federal Housing Administration (FHA) regulations and authorities, is already stirring the response of mortgage finance industry players who warn pieces of the reform could harm lenders' business and make homeownership unaffordable to some. The FHA insures approved mortgage lenders against default-related losses on qualifying loans.

The FHA reform bill would raise the annual mortgage insurance premium to 1.55% from 0.55%.

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