OH-13: Sutton (D) Speaks in Favor of Increasing FHA Mortgage Assistance

Rep. Betty Sutton (D-Copley Township) spoke on the House floor today in support of H.R. 1852, a measure that would modernize and expand the role of the Federal Housing Administration in guaranteeing mortgage loans. Under the new rules, the FHA could guarantee refinanced mortgages loans for tens of thousands of borrowers who face delinquency due to interests rates resetting to sharply higher levels under adjustable rate mortgage loans with low introductory "teaser" rates:

"The American dream is in peril for many families in this country as foreclosures rise and dreams shatter," Rep. Betty Sutton, a Democrat from Ohio, a state particularly hard-hit by the default wave, declared in House debate on the measure.

She called the legislation, which backers say could help an estimated 250,000 families, "a bold step forward on what is going to be a long road to fix this broken system."

This is the first stand-alone bill by Congress in response to the mortgage lending crisis. In addition to changing the formula for determining eligibility for FHA mortgage insurance, it would also make funds available for financial counseling and provide grants for affordable housing. It also eliminates the statutory ceiling on the number of reverse mortgages that the FHA can guarantee.


UPDATE: I see that I have a press release from Rep. Zack Space (D-Dover) indicating that he voted for H.R. 1852 and that it passed with bipartisan support by a 348 to 72 margin. This is very good news.