Horsford Cosponsors Bill To Improve Homeowner Lending

Press Release

Today, Representative Steven Horsford (NV-4) announced he is cosponsoring H.R. 4208, The Stabilizing FHA Loan Limit Calculations Act of 2014. The bill aims to prevent further reductions in Federal Housing Administration (FHA) loan limits, which have dropped by 14.7% in Nevada, due to the U.S. Department of Housing and Urban Development (HUD) changing how it calculated the FHA loan limits for 2014 by reducing the Median Home Price (MHP) used in the calculation.

"These reductions in FHA loan limits are hurting Nevadans' who rely on FHA-insured loans in order to purchase a home and are hurting the housing recovery across our country," Horsford said. "At a time when getting a loan is difficult enough, HUD should not be instituting loan limit policies that keep the American Dream of owning a home out of reach for many families."

HUD has previously calculated an area's loan limit based on a county's highest MHP over time. This policy has allowed for and promoted stability in the nation's housing markets.

The bill will help stabilize the loan limit calculations by requiring that HUD's MHP used to calculate the loan limit for the area be at least the MHP that was used in 2013 to calculate the limit.

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