Senate Bill Would Boost FHA Insurance Reserves

Law360, New York (July 15, 2013, 7:23 PM EDT) -- The Federal Housing Administration would be required to increase the capital reserves for its insurance fund and update its mortgage underwriting standards among other changes in a bipartisan Senate bill unveiled Monday.

The FHA Solvency Act of 2013, co-authored by Senate Banking Committee Chairman Tim Johnson, D-S.D., and the committee's ranking Republican, Idaho's Mike Crapo, would also require the agency to charge a minimum mortgage insurance premium of 55 basis points as part of a plan to help it avoid a first-ever federal bailout.

“Our bill...
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