House Passes Bill Allowing FHA To Raise Premiums

Law360, New York (September 11, 2012, 4:43 PM EDT) -- The U.S. House of Representatives on Tuesday overwhelmingly passed legislation that intends to help shore up the finances of the beleaguered Federal Housing Administration by allowing the agency to raise premiums on the mortgages it insures.

The bill, the FHA Emergency Fiscal Solvency Act, passed in a 402-7 vote one day after its sponsor Rep. Judy Biggert, R-Ill., urged the House to pass the "common-sense targeted changes" to the agency, which is facing a capital crunch thanks to increased foreclosures.

The FHA, which insures more than...
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