House approves bill simplifying downpayment for FHA-insured mortgages

WASHINGTON – Legislation that safeguards low borrowing costs for low-income families was passed by the House on Nov. 15. The Federal Housing Administration Downpayment Simplification Act of 2002, sponsored by Reps. Marge Roukema (R-N.J.) and Barney Frank (D-Mass.) amends the National Housing Act to permanently simplify the downpayment requirements for FHA-insured mortgages for single-family homebuyers; repeals the 50% increase in the Ginnie Mae guarantee fee scheduled to go into effect in 2004; and requires the U.S. Department of Housing and Urban Development to index the multifamily mortgage limits each year, starting in 2003, to the consumer price index. The bill was passed by the Senate last month.