Contact: Scott Olson For Immediate Release 571-527-2601 May 9, 2019
In identical letters (Read here) to House and Senate appropriators and authorizers, the Community Home Lenders Association (CHLA) today asked Congress to authorize higher pay scales for the Federal Housing Administration (FHA), commensurate with other federal financial regulators, such as the FHFA and the FDIC. This letter follows a similar letter CHLA sent in March, arguing for higher pay-scale authority for Ginnie Mae employees.
The CHLA letter also asked Congress to re-authorize lapsed authority from the 2008 HERA legislation which allowed FHA to use up to $25 million in FHA profits to fund FHA IT improvements.
“ The Community Home Lenders Association (CHLA) writes to urge appropriators to take two important actions in the FY 2020 THUD appropriations bill: (1) authorize a higher pay scale for the Federal Housing Administration (“FHA”) commensurate with higher pay scales for other federal financial regulators and (2) re-authorize lapsed funding authority under the 2008 HERA statute for critical FHA technology upgrades.”
The CHLA letter asked Congress to reject the Administration’s proposal to pay for FHA IT improvements through a new $25 fee on each new loan – arguing instead that it should come out of the over $7 billion in net profits FHA is projected to make for taxpayers next year.
CHLA emphasized that “these two proposals would enhance FHA’s ability to manage this mortgage program which plays a critical access to mortgage credit role for low and moderate income, minority, veteran, rural, and other underserved homebuyers”
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