CONGRESSWOMAN ELISE STEFANIK
The House is expected to consider H.R. 5872 on the House floor on Wednesday, July 28, 2010, under a motion to suspend the rules, requiring a two-thirds majority vote for passage. This legislation was introduced by Rep. Barney Frank (D-MA) on July 27, 2010.
The bill would authorize the HUD Secretary to enter into commitments to guarantee loans in an amount not exceeding $20,000,000,000 in total loan principal. Some Members may be concerned that the bill would increase the HUD Secretary’s commitment authority by $5 billion for FHA’s multifamily program. HUD expects to reach its current $15 billion commitment limitation before the end of the current fiscal year.
According to CBO, the bill would enable FHA to insure more loans, about $3 billion more than currently estimated for 2010. Using a subsidy rate of slightly more than 3 percent, additional collections would be close to $96 million.