July 17 - The American Bankers Association has released the following statement by Frank Keating, ABA president and CEO:
“The American Bankers Association commends Banking Committee Chairman Johnson and Ranking Member Crapo on their bipartisan proposal to reform the Federal Housing Administration. The FHA plays a vital role in our nation’s housing finance system, ensuring that first time homebuyers and low-to-moderate income borrowers are able to access mortgage credit. During the financial crisis, the FHA helped to ensure that mortgage credit remained available, even as credit markets in many other areas froze.
“The proposed FHA Solvency Act of 2013 furthers the important task of placing FHA on a sound financial footing and ensuring that its programs remain viable options for future generations. Its reforms include required improvements to capital levels for the Mutual Mortgage Insurance Fund, the establishment of a chief risk officer within the FHA to ensure better risk management for the agency, stabilization of the Home Equity Conversion Mortgage program that provides reverse mortgages to qualified borrowers and new improvements to the FHA’s underwriting and indemnification programs.
“One of these key reforms, using underwriting standards based on the CFPB’s Qualified Mortgage rules, makes it that much more imperative that the CFPB gets the QM rules right - and that sufficient time is allowed for it to do so.
“We look forward to working with members of the Senate and the House as each body moves forward on this important issue.”