Washington, DC– Today, in reaction to this morning’s House Financial Services Committee hearing, “Examining the Proper Role of the Federal Housing Administration in our Mortgage Insurance Market”, NCRC President and CEO John Taylor made the following statement:
“FHA plays a critical role in the housing market, which it has served very well for many years. The fact is, FHA and Ginnie Mae weathered the worst of the housing crisis, and are still standing. It is unreasonable to expect that they would emerge totally unscathed given the enormity of the crisis, which brought down some of the largest financial institutions in the country. FHA doesn’t guarantee bad product; the product they guaranteed suffered when toxic, subprime and predatory loans brought down the whole housing market and left millions underwater.”
“FHA has already taken several steps to recapitalize its single-family insurance fund, which should put it well on the way to full financial health. The agency has excellent leadership and a prudent manager in FHA Commissioner and Assistant Secretary for Housing Carol Galante.”
“Throughout its history, FHA has been able to help those toward the bottom of the economic ladder to access homeownership and build wealth through equity. If Congressman Hensarling had his way, Congress would cut off the rungs on that ladder that have allowed so many American families to move into the middle class.”
“FHA’s immediate financial future is of course linked to the health of the housing market and the economy as a whole. The focus for Congress should be measures to boost our economy and help families facing foreclosure.”
About the National Community Reinvestment Coalition (NCRC): The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America’s working families.