This story appeared in Bank Digest.
A bill intended to counteract the reductions in available mortgage credit due to the Federal Housing Administration's (FHA) new lower loan limits has been introduced by Rep. Gary Miller (R-Calif). The measure, which Miller said would provide many first-time home buyers access to low down payment financing that is affordable, would address recent FHA changes by:
- stabilizing the loan limit calculations by requiring that the Department of Housing and Urban Development use the Median Home Price used to calculate the loan limit for the area be at least the MHP that was used in 2013 to calculate the limit; and
- granting HUD Sub-Area authority to subdivide and adjust loan limits for different real estate markets within the same county.