WASHINGTON The House Financial Services Committee will roll out a bill to scale back the Federal Housing Administration’s single-family program in the “next month or so,” according to Rep. Randy Neugebauer, R-Texas.
“FHA has moved way beyond their original charter,” the Texas congressman said Tuesday during his remarks at the National Association of Realtors Conference.
The subcommittee chairman noted that FHA has a higher lending limit ($729,750) than Fannie Mae and Freddie Mac’s $625,500 lending limit, according to National Mortgage News, an affiliate of Credit Union Journal.
FHA should be focused on financing “first-time and low- and moderate-income homebuyers,” Neugebauer said, adding that when it comes to Fannie and Freddie, “We need to dial their presence back” to make room for private capital to return to the mortgage market.
House Financial Services Committee chairman Jeb Hensarling, R-Texas, has indicated his plans to pass a FHA reform bill before August.
It is unclear if the committee chairman will introduce a Fannie/Freddie reform bill before the August recess.
