NAMB Supports Stimulus Package, Urges Congress to Go Further to Help Homeowners
Jan 30, 2008
McLean, Va. – January 30, 2008 – The National Association of Mortgage Brokers (NAMB) today issued a statement supporting the bipartisan stimulus package proposed by the White House and leaders of the House of Representatives, and passed by the House on Tuesday that will ease the escalating financial crisis by increasing the dollar limit for residential loans insured by the FHA, and purchased by Fannie Mae or Freddie Mac.
“Raising the loan limits up to nearly 0,000 will have an immediate and powerful impact on families across America, particularly in high-cost areas,” said NAMB President George Hanzimanolis. “We commend Rep. Gary Miller (R-CA) and Chairman Barney Frank’s (D-MA) leadership on this issue, and we urge the Senate to take swift action on their stimulus package and include similar language.”
In its statement, NAMB said the current situation underscores the need for GSE reform, and called on Congress to take up comprehensive GSE reform as quickly as possible, beyond the confines of the economic stimulus package.
NAMB said increased FHA loan limits were also long overdue, and urged Congress to further assist families by making the increase permanent rather than temporary. The statement also called on policymakers to make it easier for consumers to apply for FHA loans through mortgage brokers.
NAMB has been working to make it more affordable for small business mortgage brokers to offer FHA loans. Right now, unlike other government loan programs, a costly yearly audit is required for loan originators to participate in the FHA program. NAMB has been seeking to replace the yearly audit with a surety bond.
“Experience shows that yearly audit is no guarantee of financial stability,” Hanzimanolis said. “Adoption of a surety bond requirement for mortgage brokers will allow many more small business mortgage brokers operating in rural, low- and middle-income communities to offer FHA loans where they will have the greatest impact.”
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