US Senate Passes FHA Modernization Bill

The National Association of Realtors® reported this week that on July 11th, the Senate voted 63 to 5 to approve the FHA Modernization Bill. It is the Realtor® position that HR 3221 creates affordable housing opportunities by setting loan limits up to $625,500 for Fannie Mae, Freddie Mac and FHA, and will stimulate housing demand with a temporary $8,000 home ownership tax credit. The bill also includes broad reform for Fannie Mae, Freddie Mac, and FHA, and creates a new FHA program to help homeowners at-risk for foreclosure.

NAR believes that this bill is critical to restoring confidence in the mortgage and housing markets and the nation’s entire economy. But it isn’t complete yet. Now, the bill goes to a conference committee before Congress can send it to the President. Negotiations begin over the next few days and weeks, and both House and Senate leaders hope to get the bill on the President’s desk before the August recess.

The National, State and Local Association of Realtors® have lobbied hard to get to this point. Our strong involvement included face to face meetings between members and their Senators and Representatives in their home states as well as in Washington, DC – including the May Midyear Legislative Meetings. NAR generated more than 250,000 e-mail messages and phone calls urging Congress to take action on the vitally important Housing bill.