Home / News / Foreclosure / House Votes to Terminate FHA’s Short Refi Program
Print This Post Print This Post

House Votes to Terminate FHA’s Short Refi Program

The U.S. House of Representatives has passed legislation to end the ""Federal Housing Administration's"":http://www.fha.gov (FHA) ""Short Refi Program"":http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2010/HUDNo.10-173 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 â€" 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.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

Check Also

Statutory Requirements: Strict Construction or Strict Compliance?

Make sure that your Section 1304 notices do not include anything beyond what the statute expressly prescribes, and it is mailed in a separate envelope. Arsenio Rodriguez and Ali Degan Esq. from Stern & Eisenberg, P.C. explain this crucial detail.

Your Daily Dose of DS News

Get the news you need, when you need it. Subscribe to the Daily Dose of DS News to receive each day’s most important default servicing news and market information, absolutely free of charge.