H.R. 1852, The Expanding American Homeownership Act of 2007 (66 comments ↓ | 7 wiki edits: view article ↓)

  • This item is from the 110th Congress (2007-2008) and is no longer current. Comments, voting, and wiki editing have been disabled, and the cost/savings estimate has been frozen.

H.R. 1852 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.

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Tom Grove

April 22, 2007, 8:50am (report abuse)

The part of this bill that deals with Reverse Mortgages is vital concern to those of us turning 62. The current legislation allowing same will expire on 9/30/07 so it is extremely important to pass this legislation before the deadline.

A. Olivo

May 2, 2007, 2:21pm (report abuse)

This bill has good intentions in that it seeks to make FHA a real financing option in high cost areas where the current low FHA loan limit precluded many from using FHA and were forced to use subprime financing. However, it fails highlight the possibility of using FHA with a non-profit downpayment (NDPA) gift. By using the gift, the FHA marginal buyer has an instant safety net for the should they have to sell unexpectantly. This bill would allow a buyer to finance about 103% of the value of their home into the loan. In this declining market, these riskier borrowers can hardly afford to be in a negative equity situation from the very beginning.

J. Le Francois

June 29, 2007, 4:42pm (report abuse)

As a loan officer for Reverse Mortgages I can tell you that a reverse mortgage can change lives. The lending caps per county should be removed in favor of the Hud lending cap of $417,000.00. Two homeowners live in two different counties and both have the same value house one gets $93,000 less because of the lending caps is unfair.This is a true example and is hard to explain why they are intitled to less when their house is worth more.

Nancy D.

July 13, 2007, 3:19pm (report abuse)

I appreciate the comments of J. Le Francois, as many seniors in a county with lower limits suffer although the value of their property matches one in a nearby region. Also if Reverse Mortgages are no longer backed by the Government of the United states there will no longer be a standard to do business. If that were to happen businesses would ramp up programs that might not serve the need of the public, namely the senior public. Congress must vote on this bill to ensure the lively hood of some of its most patriotic citizens. Those from the WWII era, and baby boomers.

Fran Markowitz

July 23, 2007, 11:40am (report abuse)

One Major Flaw in the Reverse mortgage provisions that should be addressed and i do not see it in the new Bill is the fact that the condominium must have a reserve fund and many of them do not this has kept many eligible people out of the reverse mortgage system

jim flanary

July 26, 2007, 9:03am (report abuse)

Can someone tell me where this bill sits at the present time and what the chances are that it will pass?

I believe that approval is needed to allow more people to access the benefits.


August 7, 2007, 2:05pm (report abuse)

Please hurry and pass this bill. I am a senior who pays 75% of my income on a mortgage that is constantly going up. I need help fast because I don't want to lose my house that I've been in for 23 years. Thank you.

Sharon Roddy

August 10, 2007, 10:41am (report abuse)

I hope I live long enough to see this bill passed! What happened last year? I have been struggling since 1993 to maintain my HUD approval for my small mortgage company. Many of my broker friends have already thrown in the towel. I hope I don't have to.


August 13, 2007, 3:07pm (report abuse)

For those who do not know: In order to provide an FHA mortgage, a mortgage broker must have audited financial performed every year which is very expensive ($4000 plus in most cases.) This makes continuing to do FHA business a yearly decision. The FHA loan is, for many, the best mortgage loan possible for many, many people. Unfortunately, many people either do not purchase a house or use non-conforming loans (and therefore, much higher rates) in order to purchase their house because the FHA program is not available to the lender or broker that they go to.


August 18, 2007, 4:43pm (report abuse)

As a mortgage broker and living in a retirement area, I believe this bill is dearly needed. Too many people are being forced out of their homes because of higher insurance and taxes and not enough income to pay for them. Leaving the family home is very traumatic for many seniors. This leads to bad things happening to them. The audit is expensive too. Thanks Oliver. Hopefully the bond will be less. The more originators of FHA's the better for the consumer.


September 11, 2007, 10:00am (report abuse)

The addition of the home purchase option with the HECM is going to make a huge difference for many seniors. So many seniors are living in paid for homes in "less than safe" areas. At the time they bought their homes (30-40 yrs ago) they were in wonderful neighborhoods, but time and flight to the suburbs have drastically changed the face of their neighborhoods. With the existing policies the homeowners have to do two mortgage transactions in order to take advantage of the HECM loan. They have to buy a new home with the proceeds of their old home and take on a mortgage to make up for the difference in housing prices. That mortgage can then be refinanced with a HECM. It's time consuming and costly to the homeowner to have to do two seperate transactions. Also the increased loan limits (proposed) will allow the senior homeowner to buy homes in more upscale neighborhoods near their children or other family members in nicer (and safer) neighborhoods.


September 11, 2007, 1:24pm (report abuse)

As a responsible mortgage broker House Bill 1852 is crucial to my survival. Only a handful of mortgage brokers can afford the hefty audit fees associated with FHA/HUD approval process. Congress will do this country a great favor by passing H.R. 1852. I disagree with lowering the bond requirement with the approval process. Moving the bond requirement up to $75k is the RIGHT thing to do. This will eliminate some brokers with less than perfect performance histories from obtaining the bond.... in turn this will help clean up our industry.

Mike Irvin

September 11, 2007, 7:04pm (report abuse)

With the meltdown in the mortgage industry, this bill would be a godsend for many mortgage brokers. Many good mortgage brokers have stayed away from originating FHA loans due to the cost of the annual audit. This bill makes sense for so many good reasons.

Mary Ann

September 17, 2007, 10:36am (report abuse)

I am looking for a date when this will be voted on. Does anyone have inside information on that?

Congressional Update

September 17, 2007, 11:42am (report abuse)

To help answer Mary Ann's question..... here is the CONGRESSIONAL QUARTERLY MIDDAY UPDATE:


Sept. 14, 2007 – 1:26 p.m.

House to Tackle Housing Crisis With Bill Liberalizing FHA Insurance...

Seeking to ease the mortgage crunch now squeezing American homeowners, the House next week will consider legislation to allow the Federal Housing Administration to come to the aid of subprime borrowers facing foreclosure....

The bill (HR 1852) seeks to modernize FHA’s mortgage insurance, once widely used by homebuyers but overtaken in recent years by more flexible offerings of private lenders.....

The House Rules Committee will meet Monday to decide how many amendments to make in order when the legislation reaches the floor later in the week....

Source: CQ Today Midday Update

Political Clippings compiled from BNN Frontrunner and CQ Politics.com.

© 2007 Congressional Quarterly Inc. All Rights Reserved


September 17, 2007, 8:41pm (report abuse)

I believe that Reverse Mortgages for Seniors is just plain nutty. Both husband and wife must be 62.

Do you all realize how many people are living into their 80's and 90's. By giving these folks a reverse mortgage the will be short by 5 or 6 years of the governments idea of how long people are living today is just plain insanity.

Better to have these folks downsize and take advantage of having a paid up home and money in the bank for living, traveling, etc.

Reverse mortgages are rip-offs.

Mary Ann

September 18, 2007, 8:23am (report abuse)

Thank you for the Congressional Update information. That is very helpful.


September 18, 2007, 4:04pm (report abuse)

Wade are you crazy? Uping the required bond? Thats only going to put the large broker that hires on all these loan officers and pushes them to CHARGE CHARGE CHARGE in the business and keep out the independent small broker like myself doing the right things for people and keeping the market in line. Not eating away equity with fees and points.

I bet you werent for the RESPA disclosure act as well right?

Im sure you fought to kill that bill..

How bout lets put that back in the works and the consumer knows what your really about.

Hows that WADE.?


September 18, 2007, 5:22pm (report abuse)

Jonah, your make a valid point.... but something has to be done to help with our PR nightmare that I read about in all the major newspapers. I believe that the insurance (bond) underwriters are tough on the bond qualifications. My record is spotless with the state, a super credit score, good assets and a clean criminal record.... yet it was still tough to get my 100k bond. If you don't have these things, you WON'T have an easy time getting the bond. My idea will only hurt the un-ethical giant that has been wacking peoples heads off (with fees) for years.

Blaming the brokers for this mess is like blaming the grocery store for selling liquor. We sold what the lenders wanted to buy.... nothing more.

Good luck Johah


September 18, 2007, 6:34pm (report abuse)

The bill passed out the House this afternoon. It waits Senate action.

Mary Ann

September 18, 2007, 10:09pm (report abuse)

I am anxiously waiting full passage. Looks like it will happen.


September 19, 2007, 3:33pm (report abuse)

Everyone keep your fingers crossed!


September 20, 2007, 1:26pm (report abuse)

When do you expect this bill to pass Senate and be signed off by President so FHA can implement new application procedures


September 20, 2007, 2:40pm (report abuse)


From what company did you get your 100k bond? Where can I find the requirements? Thanks


September 20, 2007, 9:30pm (report abuse)

Major, I will check, and then post it for you.


September 20, 2007, 9:33pm (report abuse)

It came out of committee with a couple of changes (which I like). One change is that you can now borrow up to the appraised value of a home. I take that as to similar to the RHS loan???? What do you think?

Also, I am not sure if the Bill must now go back to the House to be voted on again, or what? I think it does..... not sure.


September 20, 2007, 11:15pm (report abuse)

This bill will allow for people to take out a 40 year loan? If you can't afford a house get a better job or rent! 35 years is to long if you can't afford to do it in 20 then get a better job or rent!


September 21, 2007, 7:20am (report abuse)

how does this affect the reverse mortgage - we live in florida

Tami E

September 26, 2007, 12:22pm (report abuse)

I can't figure out why no one at my office or lender is aware that this is a good thing. When does it got to the Senate..anyone know?


September 26, 2007, 3:26pm (report abuse)

Here is the best web site I have seen with up-to-date info on the FHA reform legislation. Senate Banking committee reportedly passed it last week, now it must apparently be passed by entire Senate, and then on to joint committee approval,etc.(copy&paste)



September 27, 2007, 11:01am (report abuse)

HR 1852 has passed both the House and the Senate, with changes. It's now in subcommittee. Any idea when it's expected out of committe and to the President for signature?


October 5, 2007, 9:05am (report abuse)

has anyone heard anything further regarding this bill?


October 9, 2007, 4:55pm (report abuse)

I have not seen any news that indicates the Senate Committee has made any approval or recommendations for change to HR 1852. Anyone have a link that gives this information?


October 10, 2007, 10:10am (report abuse)

This will help many people and Mortgage brokers too. People need to get refinanced before these ARMS adjust upward forcing people out of their homes. So many people chose ARMS to save $ 50 a month on their payments thinking rates would stay low and values would continue to rise. Wrong.


October 25, 2007, 4:02pm (report abuse)

Senator Dodd, the head of the senate committee said 10/24 that they have to work on the bill hr 1852. With him running for president i don't have much hope. The senate goes on vacation 11/25. We should all email him to get to work!


October 30, 2007, 7:54pm (report abuse)

Does anyone know status of hr 1852 or when it is suppose to be voted on


October 31, 2007, 4:07pm (report abuse)

The bill has passed the House and the Senate Banking Committee.It is expected to come to a vote in the Senate in late Dec.

warnockagency c0m

November 7, 2007, 3:48pm (report abuse)

I field calls everyday from mortgage brokers asking about the $75,000 FHA surety bond. Brokers need this bill passed to help refinance many customers on ARMs. Without the FHA market, we will see a great wave of foreclosures in the next 12 months.


November 14, 2007, 12:02pm (report abuse)

It looks like Senator Dodd has come up with an "original" bill that will modernize FHA.

The bill is S.2338

As of 1pm, 11/14/2007 there is no text of this bill. It should be out in the next 24 hours.


November 15, 2007, 5:23am (report abuse)

I'm hoping this bill passes soon.

The senate is supposed to vote in December?

What is the likelyhood that this will pass.


November 16, 2007, 7:40am (report abuse)

Would this bill also increase the single family home limit.

I keep seeing multifamily.

Gloria La Mantia

November 18, 2007, 9:32am (report abuse)

My aunt is 93 years old and needs the equity in her home. she only has enought $ to live on until May 2008. Please pass this bill. She may have to live on the state. If this bill passes.She can live for 2 more years in her home, with caregivers and food,utilitys. God Bless You! Her Niece


November 19, 2007, 10:37am (report abuse)

Will this bill go before the full senate before they go on vacation? does anyone know exactly when they go on vaction? What is the local commiteee? How soon if it is signed, does it become available?

Frank I

November 20, 2007, 10:27am (report abuse)

It will be a nice Christmas present if this bill is passed soon.Many seniors and baby boomers will benefit greatly and have a much better life with thewe have left.


November 21, 2007, 2:00pm (report abuse)

If this bill is not passed and time runs out.Do they have to start over again.with the foreclosures now and Paulson saying that 2008 will be worst. you might thing passing this bill will be a top priority.Unless they want millionsof empty homes


November 21, 2007, 7:03pm (report abuse)

Senator Coburn from Oaklahoma blocked unanimous Senate consideration of the bill. [FHA bills always seem to stall in the Senate] See more details in my blog entry HERE:


frank I

November 26, 2007, 1:27pm (report abuse)

I think Tom's right.It looks like this bill will stall also.If they wait until after the 2008 elections to do anything it might be unfixable.Not to mention the empty homes An condos.All we can do is hope someone will step up.


November 26, 2007, 5:48pm (report abuse)

I received a call from Dick Durbins office last Friday stating that the the Bill was given the number S2338 and will be placed on the senate legislative calendar #481.

John S

December 4, 2007, 7:53pm (report abuse)

Everyone email Harry Reid to get S2338 scheduled for immediate debate. Unfortunately a few Republican Senators are demanding further review of this bill.


December 12, 2007, 11:19pm (report abuse)



December 14, 2007, 3:44pm (report abuse)

And Senator Dodd's bill (S2338) The FHA Modernization Act of 2007, which passed today.

Under S2325 which is stuck in committee: loan limits would have been increased to 100% of the median home price in the area.

Under S2338, which passed: loan terms are extended from 30 to 40 years, downpayments are lowered from 3% to 1.5%...

and the FHA loan limits are raised in expensive markets from $362,790 to $417,000. In less expensive markets, from $200,160 to $271,050.

frank I

December 18, 2007, 8:37am (report abuse)

Now that they raised the loan limit to 417,000 in expensive areas.does that mean you can borrow more to pay your existing mortgage off,if you were short before the bill passed. Any one know? Thanks

John S

December 26, 2007, 3:57pm (report abuse)

Loan limits are not yet settled. The House bill has substantially higher loan limits in high cost areas. We might see a compromise between the House and Senate bill and get loan limits of $500,000 or more. It ain't over till....

Frank I

December 27, 2007, 7:14am (report abuse)

Thanks John S. That would be nice


December 27, 2007, 12:22pm (report abuse)

Although I am glad that the house bill has passed the Senate I feel that NAMB has failed miserably.

For years NAMB has been trying to make it easier for brokers to do FHA loans. Once again, during the BEST time in recent history NAMB failed. (continued)


December 27, 2007, 12:24pm (report abuse)

I hope that everyone that is a member of NAMB will recognize that under the presidency of NAMB President George Hanzimanolis, this failed. Way to go George! You wasted the MOST opportunistic time in history UNDER YOUR WATCH! Bravo! (NAMB is worthless)


January 12, 2008, 9:54pm (report abuse)

How can a person find out when this bill is to be voted on by the Senate? This bill is crucial to the survival of small mortgage broker businesses in order to compete and offer everything available to thier customers. It was supposed to be voted on and signed by the President in January. I can't find out what the status is. Can someone give me that information?

north carolina

January 15, 2008, 7:03pm (report abuse)

Does anyone know when this bill will be singed by the president?i

naples fl.

January 16, 2008, 3:45pm (report abuse)

Is this bill a done deal.Or are they going to drag they feet until it runs out again.

John S

January 23, 2008, 4:45pm (report abuse)

Barney Frank, chairman of the House Financial Services Committee holding news conference 1-24-08 to discuss agenda for 2008. Maybe he will announce progress on S2338 which now is part of the Bush stimulus plan.

Business Owner

January 25, 2008, 11:35am (report abuse)

A properly managed business should have no problem completing FHA annual audited financials, or minimum net worth requirements. This is a strong indicator of your long term commitment to your employees, and our industry.

Small Broker

January 29, 2008, 1:58pm (report abuse)

Business Owner - Completing the auditing and being able to afford it is two seperate items. These costs are getting passed on to the clients regardless of size of company.

John S

February 8, 2008, 3:37pm (report abuse)

02/08/2008 Stimulus Plan done. Higher loan limits will help the forward and reverse mortgage borrower in high cost areas. HUD will put out notification after bill signed by president, could be a month or more before you can close so get applications, counseling certs etc, etc started. S2338 the FHA Modernization Bill still needs to pass in order to help the rest who do not have a "high cost area" problem. The stimulus plan is only a short term solution ending in December 2008.

A Olivo

March 2, 2008, 8:23pm (report abuse)

Update: Negotiations are underway. Cross your fingers!


March 6, 2008, 1:34am (report abuse)

Pray! for a miracle! My Aunt runs out of money in May 2008.

Ron B

June 11, 2008, 1:14pm (report abuse)

Does anyone know when H.r. 1852 is scheduled for a vote in the Senate?

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