Bill H.R. 3700, Housing Opportunity Through Modernization Act of 2015, has passed house and will be put before the senate.
The bipartisan bill proposes various reforms to federal housing programs that will aim to make it easier for clients to access financing.
The bill has earned support from the National Association of Realtors.
“H.R. 3700 reforms the Federal Housing Administration’s (FHA
) single family mortgage insurance program and eliminates the current unequal treatment of buyers and sellers of condominiums vis-à-vis those purchasing single family homes,” Tom Salomone, president of the National Assocation of Realtors, wrote to representatives, according to OPP Today. “This legislation also makes commonsense reforms to the U.S. Department of Housing and Urban Development’s (HUD) rental assistance programs. H.R 3700 would ease administrative burdens for housing agencies and owners, while delivering fairer and more efficient assistance to low-income families. The reforms also provide incentives for self-sufficiency.”
According to Salomone, current FHA rules place burdens on buyers, despite how strongly the FHA’s condo portfolio performs.
He argues the bill will create more opportunities for buyers to purchase condos while also protecting tax payers.
“H.R. 3700’s provisions will ease restrictions, opening affordable home ownership opportunities for many American families,” Salomone wrote. “H.R. 3700 also permanently authorizes the Rural Housing Service (RHS) use of direct endorsement lenders to approve RHA loans. FHA and VA home loan
programs already utilize this approach, which uses approved private lenders and reduces the burden on the agencies.
Originator clients may soon have an easier time qualifying for condo units.