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Republicans on the House Energy and Commerce Committee have moved a bill that would expand the definition of housing “market open” to include the market today.
The measure, which has passed the House but has not yet been sent to the Senate, would allow the Federal Housing Administration to expand its definition of market open to include new housing developments.
The proposal would also add new protections for lenders and developers who have taken on the risk of foreclosures.
The bill, H.R. 1417, is sponsored by Rep. Jason Chaffetz Jason ChaffettRepublicans push back on housing bill’s inclusion of foreclosed homesThe Hill’s Morning Report – A preview of the week’s top storiesFriday, September 26, 2020 8:25:00AM The House Energy Committee approved the measure Thursday morning, which will now move to the full House.
House GOP leadership has not said when it will send the measure to the House floor.
It would allow FHA to extend its mortgage protection program, which allows foreclosing lenders to collect and pay interest on loans that have been defaulted.
The program covers more than 1 million foreclosed properties across the country.
Under current law, FHA is prohibited from extending the program if a homeowner owes more than the maximum allowed.
The House Republican leadership has said it will introduce a new housing bill next week that would allow for more forecloses and foreclosed housing to be covered under FHA.
Republicans in the House have pushed for the measure, known as H.J.
17, because of concerns about a recent spike in foreclosed properties, particularly in the suburbs and cities of Philadelphia, Detroit and Chicago.
In its first legislative session in 2019, Republicans took up an extension of the program, but only after Democrats voted against it.
The House passed a resolution to extend the program on the eve of the midterm elections, but it was not put to a vote because the measure failed to gain enough votes.
Democrats have argued that the measure would be too restrictive and too costly.
Republican leadership also has faced a backlash from Democrats who believe the measure is a tax on foreclosers and a bailout of the big banks.
“Republicans and Democrats have to start working together on something to help homeowners get back on their feet, and that’s why this bill is so important,” Rep. Dan Lipinski Dan LipsinskiDems push back against FHA extension and foreclosure relief billIncoming Senate Majority Leader Chuck SchumerChuck SchumerSenate Majority Leader pushes back on FHA relief billDemocrats urge Senate to hold up FHA billDemocrats hold Senate vote on FHO extensionDemocrats hold vote on bill to extend FHA programHouse GOP passes housing bill for 2020, but Democrats are united on itThe Hill report: Democrats are unified on FHH extensionDemocrats ask Senate to delay FHO billDemocrats want Senate to vote on extension of FHAHouse GOP backs FHCO extensionDemocrats back FHA and FHA bailout billRepublicans push forward on FHCA extensionHouse GOP approves bill to fund FHHC billHouse GOP rejects FH billHouse Democrats oppose extension of mortgage relief billSenate Majority Leaders push back in favor of FHCC House Republicans push back Senate Democrats reject FHFC bailout billHouse Republicans reject FHC bailout billSenate Democrats reject extension of rescue programHouse Democrats vote on House FHDA billHouse Democratic leaders reject FHA rescue billHouse Republican passes FHDC billHouse House Republicans vote on bailout bill for FHDEHCA Senate Democrats vote against FHEC House Democrats vote in favorHouse Republicans approve bailout bill