we continue to analyze the bill, we may suggest some fine-tuning of
specific provisions," Stevens said.
"We support the direction of this legislation and look forward to working with the chairman and ranking member as the committee considers their proposal in the coming days and weeks."
Senate Banking Committee Chairman Tim Johnson (D-S.D.) and ranking member Mike Crapo (R-Idaho) released a discussion draft on Monday that strengthens underwriting standards, improves lender accountability measures and overhauls the agency's reverse mortgage program.
The FHA, created nearly 80 years ago, has run
into financial struggles caused by the failure of bad loans made during
the period around the financial crisis.
Johnson has said
his committee would take up an FHA bill first before moving on to a
measure that would overhaul mortgage giants Fannie Mae and Freddie Mac.
GOP members of the House Financial Services Committee last week
released a discussion draft that would deal with both issues together
and would require the FHA to become a self-sustaining entity, most
likely within about two years of enactment of a measure.
The FHA has
already taken some recommended steps to mitigate its losses. But the
Johnson-Crapo would provide more flexibility to bolster its balance
sheet and protect taxpayers from having to step in with a bailout, the