Number: RS22662
Title: H.R. 1852 and Revisiting the FHA Premium Pricing Structure: Proposed Legislation in the 110th Congress
Authors: Darryl E. Getter, Government and Finance Division 
Abstract: The intent of H.R. 1852 as stated would "modernize and update the National Housing Act and enable the Federal Housing Administration to use risk-based pricing to more effectively reach underserved borrowers, and for other purposes." Specifically, the bill would make reforms to the Federal Housing Administration (FHA) program, a federally operated mortgage insurance program primarily serving less creditworthy borrowers, that would make it a more viable option for borrowers unable to access it under current regulations. H.R. 1852 was passed and agreed to in the House of Representatives on September 18, 2007, and referred to Senate Committee on September 19, 2007. Among the many reforms proposed in the bill, FHA's premium pricing structure would be modified. FHA would be allowed to risk-base price or charge different premium rates to borrowers based on their levels of credit risk.
Pages: 6
Date: September 25, 2007