Kerry: Good News for Massachusetts with Senate Passage of FHA Modernization Act
Senator John Kerry today issued the following statement on the Senate passage of the FHA Modernization Act of 2007. The bipartisan legislation, which was passed in the Senate 93-1, will allow the Federal Housing Administration ("FHA") to better help first time homebuyers and homeowners with subprime mortgages obtain safe and affordable home loans. The legislation will increase FHA single-family loan limits, lower and streamline FHA downpayment requirements and increase consumer protections to help limit mortgage fraud.
"This will increase the availability of fair and affordable mortgages for Massachusetts families and help keep them from falling prey to predatory lenders," Senator Kerry said. "It will help ease the recent increase in foreclosures in Massachusetts and across the United States."
Massachusetts Representative Kevin Honan (D- 17th Suffolk), Chairman of the House Committee on Housing, said, "This significant piece of legislation will assist thousands of Massachusetts families facing the very real possibility of losing their homes this winter. The subprime mortgage crisis has damaged communities, affecting the lives of our friends and neighbors to an extent that requires a coordinated approach from all levels of government. Senator Kerry has been a real leader on this issue and families across the commonwealth will benefit from his efforts."
Massachusetts is on pace to have a record number of foreclosures this year with published reports stating that roughly 25,000 foreclosure actions have been made against Massachusetts homeowners over the past year. More than 6,200 Massachusetts properties were foreclosed during the first ten months of 2007, more than three times the number of foreclosures during the same period last year. The foreclosure rates of five Massachusetts metro areas rank in the nation's top 100 - Worcester (#35), Springfield (47), Essex County (53), Boston/Quincy (59) and Cambridge/Newton/Framingham (65).