Magazine article Mortgage Banking

Lawmakers, MBA Urge Withdrawal of Proposed FHA Fee Hike

Magazine article Mortgage Banking

Lawmakers, MBA Urge Withdrawal of Proposed FHA Fee Hike

Article excerpt

A bipartisan faction of Congress has urged the Department of Housing and Urban Development (HUD) to withdraw its plan to significantly increase fees on a wide range of FHA affordable multifamily housing and health-care mortgage loan programs.

Led by Reps. Gary Miller (R-California) and Barney Frank (D-Massachusetts), a letter--signed by 120 members of the U.S. House of Representatives--to HUD Secretary Alphonso Jackson objected to the department's proposed 71 percent FHA fee increase.

On June 28, HUD published in the Federal Register a notice of its intent to implement its FY 2007 budget proposal to impose a 71 percent fee increase on a wide range of FHA affordable multifamily housing and health-care mortgage loan programs.

The letter, sent by House members on the final day for comments, noted the fee increases would do "serious harm" to vital housing programs while at same time the increases are fiscally unnecessary.

"This increase is not justified, from a budgetary point of view. As the administration's own budget clearly shows, the programs being subjected to this fee hike would have a negative credit subsidy without any fee increase," the letter stated. "The effect of HUD's proposed fee increase is simply to raise money for the general treasury, at the expense of affordable housing and health-care loan programs. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.