The House Committee on Financial Services considered testimony from Federal Housing Administration ("FHA") Commissioner and Assistant Secretary for Housing, Department of Housing and Urban Development ("HUD") Brian D. Montgomery, as well as several bills concerning homeownership in the United States.

In his testimony, Mr. Montgomery provided a broad and fairly detailed update on FHA activity that emphasized general improvement in the economy and in the FHA's financial position, but also noted some negative trends in the FHA's mortgage portfolio.

Additionally, the House Committee on Financial Services discussed the following bills:

  • H.R. 3958, the "FHA Foreclosure Prevention Act of 2019," which would increase FHA oversight of loss mitigation and implement a complaint and appeals process for borrowers who believe their servicers are not complying with FHA requirements;
  • H.R.____, the "Improving FHA Support for Small-Dollar Mortgages Act of 2019," which would require the FHA to conduct an internal review to identify barriers stopping the FHA from supporting mortgages under $70,000 and provide a report to Congress within a year of how the barriers will be removed;
  • H.R.____, the "Reinstating the FHA-FFB Partnership Act of 2019," which would require HUD to continue the Finance Housing Agency-Federal Financing Bank ("FHA-FFB") partnership;
  • H.R. ____, the "Helping Borrowers Avoid Foreclosure Act of 2019," which would give the FHA and the Rural Housing Service of the Department of Agriculture the authority to provide enhanced loss mitigation options for distressed borrowers;
  • H.R. ____, the "Improving Federal Oversight of PACE Financing Act of 2019," which would require originators of Property Assessed Clean Energy loans to receive consent from the underlying single-family mortgage holder prior to providing financing; and
  • H.R. ____, the "Making FHA Work for Borrowers with Student Debt Act of 2019," which would require the FHA to permit lenders the option of considering actual monthly student loan payments based on current student lender documentation to account for borrowers who have high student debt but are in income-based repayment plans.

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