RISMEDIA, April 4, 2007-The National Association of Mortgage Brokers has applauded passage of legislation by the House Committee on Financial Services that improves access to key assistance programs for home buyers in high-cost areas. The bill would also reform the oversight procedures for government-sponsored entities (GSEs) Fannie Mae and Freddie Mac.
In a letter last week to the leadership of the House Committee on Financial Services, NAMB President Harry Dinham praised provisions of the Federal Housing Finance Reform Act of 2007 that would ensure the GSEs' ability to perform their missions, while creating parameters for the secondary mortgage market to operate safely and efficiently.
"Passage of this bill will advance the process of establishing a strong, even-handed regulatory framework for the housing GSEs," said Dinham. "NAMB supports GSE regulatory reform efforts because they allow the entities to focus on their housing mission for the benefit of all homeowners."
The legislation includes provisions to set regional conforming loan limits at levels that are better designed to assist would-be home buyers in high-cost areas. Home buyers in these areas are currently penalized by not having access to assistance and benefits from GSEs because the median cost of housing in their areas is higher than the current conforming loan limit.
"Increasing conforming loan limits in high-cost areas is an essential component to this legislation," said Dinham. "Those who choose to live and work in high cost areas should not be victimized by the very systems intended to help them."
The bill will next be considered by the full House of Representatives.