Bush Administration’s FHA Modernization Plan Includes Higher Loan Limits in High-Cost Areas, Risk-Based Premiums
April 6, 2006
The Bush administration’s bid to modernize a slumping FHA mortgage insurance program this week won solid bipartisan support – at least in concept – in the House Financial Services Subcommittee on Housing and Community Opportunity. The legislative proposal features higher FHA loan limits in pricier housing markets, risk-based insurance premiums, and greater downpayment flexibility. It was designed to address the plummeting popularity of the FHA program, which fell from roughly 9 percent of total…