Home Builders Urge Big Jump in FHA Adjustable Mortgages

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An industry group urged Congress Thursday to increase the amount of FHA-insured adjustable-rate loans that may be issued annually.

Donald Martin, president of the National Association of Home Builders, told House Banking's housing subcommittee that current limits on the loans prevent many low- and moderate-income borrowers from obtaining mortgages.

The home builders group "wholeheartedly supports an increase in the number of adjustable-rate mortgages FHA can insure," Mr. Martin said.

The provision is included in a broad bill sponsored by the subcommittee chairman, Rep. Rick Lazio, R-N.Y., that would affect federal housing programs

Under current law the …