Support for FHA

Resolved that the National Association of Home Builders (NAHB) reaffirm support for the Federal Housing Administration (FHA), its mission to support liquidity, innovation and continuity in the housing finance markets by providing mortgage insurance backed by the full faith and credit of the U.S. government, and its counter cyclical role to promote stability in the housing market;

Further resolved that NAHB support prudent FHA underwriting criteria that considers the availability of FHA-insured mortgages and protections for tax payers;

Further resolved that NAHB support the continued funding of FHA through borrower-paid mortgage insurance premiums and the fiscally responsible operation of FHA in a manner that does not require a federal subsidy;

Further resolved that NAHB support the modernization of FHA to allow the agency to operate more efficiently and effectively and urges Congress to:

1. Restructure FHA as an independent government corporation within the U.S. Department of Housing and Urban Development (HUD), separate from the Government National Mortgage Association (Ginnie Mae), that would continue its current mission;
2. Maintain oversight over FHA, but provide authorities enabling FHA to have the flexibility to react promptly to changes in market and other conditions;
3. Direct that FHA be led by a chief executive officer, appointed by the President, who would report to a presidentially appointed board, chaired by the HUD Secretary;
4. Authorize FHA to establish policies with respect to matters involving hiring, compensation, personnel management, and procurement that are free from federal government constraints in order to be operated in a manner more consistent with the best practices found in the private sector; and,
5. Allow FHA to retain revenues generated in excess of expenses to be used for mission purposes; and

Further resolved that NAHB urge Congress, that in evaluating proposals for further change in FHA programs, the standard protocol for accurately determining the ultimate outcome of any proposed change on FHA’s mission, effectiveness and financial condition should be to:

1. Analyze any modifications within the context of other changes that have occurred or may occur both within FHA and in the broader housing finance system, and
2. Assess such modifications in terms of the cumulative impact of all components of housing finance system restructuring, including the interplay among housing finance sectors.

Resolution originally adopted: 2013.6, Resolution No. 9

• Housing Finance Committee