HOUSE APPROVES FEDERAL HOUSING AUTHORITY REFORM
Bill addresses lending crisis and expands home ownership September 17, 2007

WASHINGTON, D.C. -- U.S. Rep. Lincoln Davis voted in favor of the Expanding American Homeownership Act of 2007. The bill strengthens the Federal Housing Administration (FHA), which was established to provide affordable mortgage loans for first-time homebuyers. Under the bill, the FHA will be able to protect borrowers from predatory lending and provide an alternative to homebuyers who could not previously afford a loan covered by the FHA. In addition, the bill gives some current homeowners affected by the sub-prime crisis an opportunity to refinance so they can keep their homes.

"It is my hope that every American with the dream of owning a home can one day know that blessing,” Davis said. “Congress has responded responsibly to predatory lending and oncoming foreclosures, and I am proud to see us getting help to families that would like a home or are threatened with the loss of their home."

Recently, Congressman Davis brought Committee Chairman Collin Peterson to Tennessee so local officials and farmers could brief him on the needs of the State. Peterson agreed that time is of the essence to get disaster aid out to states like Tennessee. Since that time, Davis has had correspondence with Peterson requesting an active role the drafting process of a disaster relief bill

The number of foreclosure notices hit a record high in the spring, for the third quarter in a row, largely due to problematic, sub-prime mortgages. Experts believe that as many as 40 percent of current sub-prime borrowers could qualify for fixed rate loans.