June 9, 2010

Congressman Gregory W. Meeks Votes in Favor of FHA Reform Bill
Will Help to Stabilize Housing Market and Protect Taxpayers

(WASHINGTON, DC)– Congressman Gregory W. Meeks (NY-6), Senior Member of the House Committee on Financial Services and Chairman of its Subcommittee on International Monetary Policy and Trade, voted in favor of H.R. 5072, the Federal Housing Administration Reform Bill. This bill will help families obtain homeownership, save taxpayers money, and protect Americans from mortgage fraud by instituting reforms to the Federal Housing Administration (FHA).

“This bipartisan bill makes the essential reforms to rebuild the housing market by reforming lending practices and protecting American taxpayers from mortgage fraud schemes.  This legislation brings more accountability and transparency that will protect American families on Main Street from further economic devastation while saving taxpayers billions of dollars,” stated Congressman Meeks.

This bill permits FHA to raise the premiums for new borrowers with small down payments, while continuing to provide affordable mortgage insurance to low-income and minority families. The FHA’s reserves have fallen below the two percent level required in law. This legislation would reduce federal spending and save taxpayers $2.5 billion over five years. Additionally, the bill provides FHA with authority to crack down on fraudulent lenders and those violating its loan requirements.

The legislation also requires FHA to improve its internal reporting systems to better manage risk and to provide transparent data to the public and Congress, such as better monitoring of early defaults and claims; tracking mortgage information by loan servicer; and requiring a Government Accountability Office study on FHA. In addition, the bill also makes the FHA more accountable by improving its internal reporting systems and providing greater transparency to the public and Congress.

Now serving in his sixth full-term, Meeks was elected to the House on February 3, 1998. Representing New York's Sixth Congressional District in the United States House of Representatives, Meeks' district covers all towns of Southeast Queens, Far Rockaway and Howard Beach. He is a member of the House Committee on Financial Services and the Committee on Foreign Affairs.  Congressman Meeks is the Chairman of the International Monetary Policy & Trade Subcommittee of the House Financial Services Committee.  He is a Member of the Congressional Black Caucus (CBC), New Democrats Coalition and the Democratic Leadership Council (DLC).  He serves as the Co-chair of the Malaysia Caucus, Services Caucus, Dialogue Caucus, OAS Caucus and the Middle East Economic Partnership Caucus.

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