Media Center

WASHINGTON, DC—Yesterday, Congressman David Scott helped pass legislation that seeks to revitalize the Federal Housing Administration, which was established to provide a reliable source of affordable mortgage loans for first-time homebuyers. The bill will enable the FHA to serve more sub-prime borrowers at affordable rates and terms, to attract borrowers that have turned to predatory loans, and to offer refinancing to homeowners struggling to meet their mortgage payments in the current turbulent mortgage markets. Congressman Scott voted in support of H.R. 1852, which the House passed by a 348-72 vote.

“I am committed to protecting the dream of homeownership for all Americans. I believe that everyone is entitled to affordable housing and with this legislation, we are taking the necessary steps to support and serve the families troubled by the current turbulent mortgage market,” said Scott.

This new FHA reform will serve families seeking homeownership, protect and provide counseling for high risk FHA borrowers, and reverse mortgage payments for senior homeowners, enabling them to take out money from their mortgages to pay high healthcare bills and/or other expenses.

“Reforming the Federal Housing Association creates an opportunity to support American families, their communities and the American Dream.”

The House Financial Services Committee will hold a hearing on September 20, 2007, entitled “Legislative and Regulatory Options for Minimizing and Mitigating Mortgage Foreclosures”. Secretaries Henry Paulson and Alphonso Jackson, along with Federal Reserve Chairman Ben Bernanke, will discuss the President’s plan to expand FHA programs and review other options for assisting homeowners at risk of foreclosure.

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