Posted on Thursday, March 17, 2011
The U.S. House of Representatives has passed legislation to end the Federal Housing Administration’s (FHA) Short Refi Program aimed at helping homeowners who owe more on the mortgage than their home is worth obtain a new FHA-insured loan with a reduced principal.
In a 256 to 171 vote Thursday evening, the House approved the FHA Refinance Program Termination Act (H.R. 830). The vote was mostly split along party lines, with only one Republican departing from the majority and casting a nay, but 18 Democrats throwing their support behind ending the program.
It’s the first of four bills targeting federal foreclosure mitigation programs. Three others are also up for floor votes before the full House in the coming days – the Emergency Mortgage Relief Program for unemployed homeowners, the Home Affordable Modification Program (HAMP), and HUD’s Neighborhood Stabilization Program.
The bills are expected to meet strong resistance in the Democratic-controlled Senate, and will likely invoke a presidential veto if they land on Obama’s desk, according to a statement from the White House.
By: Carrie Bay DS NEWS