HUD Statement on House Passage of the Federal Housing Administration Emergency Fiscal Solvency Act of 2012
WASHINGTON – Today, the Federal Housing Administration (FHA) Emergency Fiscal Solvency Act of 2012 was passed by the full House of Representatives by a vote of 402-7. The Fiscal Solvency Act includes provisions to strengthen and broaden HUD’s ability to avoid or recoup losses for loans originated or underwritten by a mortgage lender which did not comply with FHA guidelines, as well as expand HUD’s ability to terminate the authority of poorly performing lenders to participate in FHA programs.
The following is a statement by Acting FHA Commissioner Carol Galante:
"We are pleased that the bill passed by the House includes provisions that will allow FHA to continue its efforts to strengthen its enforcement capabilities in order to protect its insurance fund and American taxpayers. We look forward to continuing to work with both chambers to enact final legislation to provide FHA with the tools it needs to build on the vital reforms implemented by this Administration.”