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Vote NO on H.R. 5072
The Federal Housing Administration (FHA) Reform Act
June 9, 2010
NTU urges all Representatives to vote NO on H.R. 5072, the Federal Housing Administration (FHA) Reform Act.
Among myriad provisions, this bill would increase the cap on annual premiums for the FHA single-family program from 0.55 percent to 1.55 percent, reduce down payment requirements, and create a new position of Deputy Assistant Secretary for Risk Management and Regulatory Affairs. While this bill is well-intentioned, and certain parts of it may have some merit, overall it expands the role of government in the housing marketplace and fails to adequately protect taxpayers from looming liabilities. FHA's share of this marketplace has already risen from 5 percent to more than 30 percent.
Accordingly, we support the following amendments that we believe would significantly strengthen H.R. 5072:
Government manipulation of the home lending sector caused many of the financial problems we currently face. In seeking reform, we cannot afford additional expansion of a federally sponsored lending portfolio that will lead to the continuation of risky practices backed implicitly by American taxpayers.
A "NO" vote on H.R. 5072, the FHA Reform Act, and "YES" votes on the Price and Garrett amendments, will be significantly weighted in our annual Rating of Congress.
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