NAR: FHA’s expanded market share must be supported

WASHINGTON – June 19, 2009 – Without the Federal Housing Administration’s (FHA) mortgage insurance program, a large portion of today’s homebuyers would be unable to realize their dreams of homeownership. The National Association of Realtors® (NAR) urged Congress today to invest resources that will ensure FHA’s continued role in stabilizing housing to stimulate the nation’s economy.FHA’s market share has grown from less than 3 percent to more than 25 percent in a short period of time. NAR submitted testimony to the House Financial Services Subcommittee expressing support for increased FHA staffing and resources to keep up with the rising demand.“As the leading advocate for homeownership, NAR strongly supports FHA’s single- and multifamily mortgage insurance programs, and we have worked diligently with Congress to fashion housing policies that ensure federal housing programs meet their mission responsibly and efficiently,” said NAR President Charles McMillan. “FHA is now the primary source of safe, affordable mortgage financing for American families. To keep up with increasing demand, FHA must expand its capabilities – but FHA has not yet received the additional staffing and other resources commensurate with its expanded role in financing mortgages.”Realtors have advocated strengthening oversight of FHA and preventing fraud in the agency and other U.S. Housing and Urban Development (HUD) programs for several years. Despite voiced concerns about FHA’s soundness and oversight, studies show that FHA remains financially sound and should remain so in the coming years. The FHA-approved group of lenders maintains strict oversight of loan originators.“Since FHA has been underinvested in for a number of years, we hope Congress will act now to provide them with resources to increase staffing and invest in technological improvements,” McMillan said. “We believe provisions of what the U.S. Senate has proposed regarding FHA loans in S. 896, the Helping Families Save Their Homes Act of 2009, will be a big step in providing the type of necessary oversight now that FHA is such a major force in the market. We look forward to working with Congress and HUD to make sure that FHA continues to offer stable, affordable, safe options for homebuyers across the country.”© 2009 FLORIDA ASSOCIATION OF REALTORS®