Missouri (PRWEB) April 20, 2007
The House Financial Services Committee met Thursday to discuss proposed reforms to the Federal Housing Administration's mortgage loan process. MortgageLoanPlace.com has been dedicated to posting updates in order to keep the public informed on all updates regarding new legislation and changes to the FHA loan program.
These hearings are due to the fact that the subprime mortgage market is deteriorating. Lenders who specialize in subprime loans have had a rough year – there has been a huge increase in the number of borrowers who have been unable to make their monthly mortgage payments and then eventually default on their loans.
Congress is expected to pass the Expanding Homeownership Act of 2007. This bill will reform the Federal Housing Administration in numerous ways that are designed to make FHA loans even more accessible to low and moderate income families. The major changes include:
1) An increase in FHA loan limits, especially for expensive housing areas in states like New York and California.
2) Borrowers can expect to see a removal of several fee hikes and an increase in the number and type of homebuyer protections, as well as a risk-based system that matches the premium amount with the credit profile of the borrower.
3) The FHA may remove the 3% down payment requirement making an FHA loan an option for many more Americans.
MortgageLoanPlace.com has been dedicated to keeping the public informed on changes to the new FHA Loan program, also referred to as FHA Modernization. Some borrowers have tried in the past to get an FHA loan only to see that they do not qualify or cannot afford the 3% down payment. However, these improvements to the program are so broad and powerful that any previously rejected borrowers should consider applying again. Homeownership is now feasible even in high-cost areas, and MortgageLoanPlace.com is ready and willing to answer any and all questions related to the FHA and its proposed changes.
MortgageLoanPlace.com is a comprehensive mortgage and loan resource for borrowers, lenders, and journalist. The site includes a variety of articles discussing lending options and educates the public on news related to the mortgage industry via the blog at http://www.mortgageloanplace.com/blog/.
Bryan Rahn, Director of Public Relations