House Committee Passes FHA Reform Act

In the wake of a much reported sub-prime lending crisis, the US House Financial Services Committee stepped up to pass legislation allowing the FHA to offer buyers a safer alternative to risky mortgage products. The Expanding American Homeownership Act of 2007 will increase loan limits, eliminate the minimal 3% cash down payment and give the FHA the flexibility to provide risk based pricing. The bill goes now to the House for a vote.