Cohen Votes to Improve Fiscal Soundness of Federal Housing Administration

WASHINGTON, D.C. – Congressman Steve Cohen (D-TN-9) today voted to support legislation that would protect Americans from mortgage fraud by instituting reforms to the Federal Housing Administration (FHA), expand opportunities for homeownership, and save taxpayers money.

“During these tough economic times, we must ensure working families don’t lose their homes and are protected from mortgage fraud,” said Congressman Cohen. “By supporting the Federal Housing Administration, we help thousands of families across the country keep their homes and save them money.”

The Federal Housing Administration Reform Act (H.R. 5072) would save taxpayers $2.5 billion over five years and make crucial reforms to strengthen the FHA, which has helped 37 million Americans buy homes since it was established in 1934. This will help families realize the dream of homeownership, especially low-income and minority families, through responsible lending.

The reforms would help protect Americans from mortgage scams and fraudulent lenders by modernizing and strengthening the FHA’s ability to analyze risk and go after lenders who violate regulations. The measure would also make the FHA more accountable by improving its internal reporting systems and provide greater transparency to the public and Congress.

The FHA Reform Act is supported by a wide coalition of organizations, including the National Urban League, the National Association of Realtors, the Mortgage Bankers Association, the National Community Reinvestment Coalition, and the National Association of Home Builders.