Industry News

HUD secretary urges FHA modernization

Bill would increase loan limits in high-cost markets

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The Federal Housing Administration's loan loss-mitigation program has helped 36,000 families with FHA-backed loans avoid foreclosure since October, HUD Secretary Alphonso Jackson said in urging Congress to pass a modernization bill. In a press release, Jackson asked Congress to pass legislation updating the FHA's mortgage programs so they are available to more Americans. The modernization bill would increase loan limits in high-cost real estate markets, such as California, where fewer than 300 families have been able to take advantage of FHA loan relief measures this year, Jackson said in a version of the release sent to news media in California. "Too many families have been lured into accepting high-cost, exotic loans to purchase their homes because the market doesn't provide enough choices that are safe, fair and affordable," Jackson said. "Modernizing the FHA would provide more hard-working families with a strong alternative to risky mortgages." FHA's Loss Mitigation program gives ...