House Panel Approves FHA Reform Measure

A bill to crack down on fraudulent brokers and lenders moved out of the House Financial Services Committee yesterday after majority Democrats warded off GOP amendments to require higher down payments and tougher lending standards for Federal Housing Administration mortgages, CongressDaily reported today. Rep. Ron Klein (D-Fla.) along with co-sponsor Rep. Maxine Waters (D-Calif.) said the bill also creates a cash incentive for mortgage servicers to reach out to financially troubled homeowners and advise them on options to avoid foreclosure. The bill could be on the floor as early as next week.

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