RISMEDIA, Sept. 25, 2007-The California Association of Realtors (C.A.R) applauded the passage of H.R. 1852, the “Expanding American Homeownership Act of 2007,” by U.S. House of Representatives. The act, introduced by Congresswoman Maxine Waters (D-Calif.), modernizes the FHA mortgage insurance program, providing American homeowners with safe, affordable mortgage alternatives that are fairly priced without resorting to teaser rates or negative amortization.
“An amendment by California Representatives Gary Miller (R-Calif.) and Dennis Cardoza (D-Calif.), and Barney Frank (D-Mass.) to H.R. 1852 increases the FHA loan limits to 125 percent of an area’s median home price, with a cap at $729,750. By contrast, the current FHA loan limit is only $362,790,” said C.A.R. President Colleen Badagliacco. “For high-cost states like California, this legislation is especially critical,” she said. “The median price of a home in California ranges from $841,660 in the San Francisco Bay Area to $709,720 in Orange County and $601,730 in San Diego.
“Passage of the “Expanding American Homeownership Act of 2007″ will give home buyers in high-cost areas like California an affordable mortgage alternative instead having to resort to significantly more expensive subprime loans,” she said. “The Frank/Miller/Cardoza amendment also will give the Secretary of Housing and Urban Development the flexibility needed to respond to changing market conditions.”
“C.A.R. will now focus its attention on getting this vital piece of legislation through the Senate,” Badagliacco said.
For more information, visit www.car.org.
