June 30, 2010

NCSHA joined a letter, signed by 22 national organizations, including the Mortgage Bankers Association, the National Association of Realtors, and the National Association of Home Builders, and sent on June 23 to House Appropriations Transportation-HUD Subcommittee Chairman John Olver (D-MA) requesting Congress provide the Federal Housing Administration (FHA) with at least an additional $5 billion of multifamily insurance authority to meet this year’s expected loan demand. 

FHA has exceeded 75 percent of its FY 2010 commitment authority to insure mortgages under the General Insurance/Special Risk Insurance (GI/SRI) Fund for multifamily rental and health care facilities.  In a letter HUD sent to Olver on June 10, FHA Commissioner David Stevens warns that without additional commitment authority, the FHA’s current authority will be exhausted by August or September and significant disruptions to financing apartment, hospital, and health care facilities that serve millions of Americans will occur.

Stevens’ letter also says FHA multifamily, hospital, and healthcare loan guarantee programs that are insured under the GI/SRI Fund have been experiencing higher than expected demand due to continuing disruptions in the bond and credit markets.  As of June 10, recorded loan guarantee commitments for the GI/SRI Fund exceeded $11.25 billion.