Capito Applauds Committee Passage Of FHA Reform

Press Release

Rep. Shelley Moore Capito, R-W.Va., today applauded the passage of H.R. 5072, To Improve the Financial Safety and Soundness of the FHA Mortgage Insurance Program, through the Financial Services Committee. Capito is an original co-sponsor of the bill.

"I'm pleased to see that Members of the Financial Services Committee have joined me in taking a first step toward much needed FHA reform," said Capito. "FHA capital reserves are nearing depletion and I believe we need to take swift action to ensure this program remains solvent."

An FHA actuarial report released last fall found the program's capital reserve fund to be well below the Congressionally mandated two percent level. In the effort to shore up the capital reserve fund, this legislation calls on FHA to do a better job of analyzing risk, gives FHA greater authority to regulate faulty lenders and allows FHA to make adjustments with their premium structures to ensure that FHA is on sound fiscal footing.

Capito noted that while the passage of H.R. 5072 will make significant improvements to the FHA program, there still may be more work to be done.

"This is a first step in addressing FHA reform and I'm committed to pursuing continued efforts to make FHA more sound and secure," concluded Capito.

Source