Bankers group pushes for higher FHA multifamily limits

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The Mortgage Bankers Association issued a statement Oct. 7 commending the House of Representatives, the leadership of the House Financial Services Committee, and bill sponsors Rep. Gary Miller (R-CA) and Rep. Barney Frank (D-MA), for passing HR 1985, the FHA Multifamily Loan Limit Adjustment Act of 2003.|ret||ret||tab|

The FHA Multifamily Loan Limit Adjustment Act will allow the Department of Housing and Urban Development secretary to further increase multifamily mortgage loan limits for Federal Housing Administration insured properties in high-cost areas. |ret||ret||tab|

By raising the loan limit in certain areas, HUD will be able to increase housing opportunities for many American families and expand the program to communities where it is currently rendered ineffective by high building costs.|ret||ret||tab|

"Passing of this bill by the House of Representatives is a real win for low and moderate-income families seeking affordable rental housing," said Kurt Pfotenhauer, MBA's senior vice president of government affairs, in a press release. "An increase to the FHA multifamily loan limit is necessary especially in high-cost markets, because without these provisions, critical housing needs will go unmet." |ret||ret||tab|

The Federal Housing Administration provides mortgage insurance to facilitate the construction, purchase, rehabilitation or refinancing of rental housing, and cooperatives, as well as nursing homes and assisted living facilities for the elderly and handicapped. |ret||ret||tab|

MBA believes that the current maximum FHA multifamily mortgage limits are not high enough in high-cost areas and continue to constrain new construction and substantial rehabilitation in many urban and suburban areas where construction costs are significantly higher than the rest of the country. |ret||ret||tab|

A decreasing supply of low-cost housing and an increase in the number of low-and moderate-income households has made the lack of affordable housing a critical issue in many parts of the country. HR 1985 would help address this issue by allowing the Secretary of HUD to increase the maximum FHA multifamily mortgage limits in high-cost areas.|ret||ret||tab|

MBA encourages the Senate to pass companion bill S 1714, sponsored by Senator John Corzine (D-NJ), so that FHA multifamily insurance programs can better serve the working families in America .|ret||ret||tab|

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