WASHINGTON, D.C. – June 19, 2009 – (RealEstateRama) — As Chairman of the House Financial Services Subcommittee on Oversight and Investigations, Congressman Dennis Moore (Third District – Kansas) on Thursday presided over the subcommittee’s hearing, entitled “Strengthening Oversight and Preventing Fraud in FHA and other HUD Programs.”
Moore called the hearing to discuss the role of the Federal Housing Administration (FHA) and its rapid expansion of lending in the mortgage market and the need for more resources to conduct stronger oversight with respect to FHA-insured loans, as well as the use of reverse mortgages that are primarily used by seniors. Moore also called for a closer examination of the appraisal process to ensure appraisals are performed accurately and independently.
“Even after the subprime market collapsed, FHA has continued to provide mortgage credit to responsible borrowers,” Moore said. “But we must be vigilant to ensure the same bad actors that contributed to the housing crisis don’t make their way into the FHA program.”
Witnesses included Kenneth M. Donohue, Sr., Inspector General, U.S. Department of Housing and Urban Development; Kevin Nunnink, Chairman, Integra Realty Resources; David Kittle, Chairman, Mortgage Bankers Association; Marc Savitt, President, National Association of Mortgage Brokers; David Berenbaum, Executive Vice President, National Community Reinvestment Coalition, and; Frank Pellegrini, President, Prairie Title.
To view video of the subcommittee hearing or to read the witnesses’ prepared testimony, visit: http://www.house.gov/apps/list/hearing/financialsvcs_dem/oihr_061109.shtml.
“There are a number of great people and resources out there to help homeowners work with their lenders so they can meet their mortgage obligations,” Moore said. “As a former District Attorney, however, I know all too well that there are also people out there who will exploit weakness and prey on the fear of others. We often think of robberies taking place with a knife or a gun, but these thieves instead come with a smile, a handshake and a ballpoint pen.”
Contact: Rebecca Black
rebecca.black (at) mail.house (dot) gov