Mr. Speaker, I am excited that we are here today considering this piece of legislation that was passed out of committee unanimously. It has been a bipartisan process from the very beginning. I believe we have a better bill that Members can…
Mr. Speaker, I am excited that we are here today considering this piece of legislation that was passed out of committee unanimously. It has been a bipartisan process from the very beginning. I believe we have a better bill that Members can support because of that process, a bill that will make it easier for Americans to be homeowners. I thank Mr. Frank. As a former realtor, I want to associate myself with his remarks with respect to the flexibility of this bill, the importance of this bill. We have come a long way in getting here today passing this bill.
I do want to acknowledge his valuable input as a cosponsor of the legislation, a key cosponsor, as well as his work on the Financial Services Committee, and also his aid Scott Olson. This legislation today is better because of the work that you all put into it. I really appreciate and am grateful for that work.
Mr. Speaker, I also want to acknowledge the leadership of Mr. Ney, chairman of the Subcommittee on Housing, and Chairman Oxley for their work on this legislation, and the key work of committee staff Clinton Jones. Clinton, you have been great on this legislation from the very beginning; Cindy Chetti, Tallman Johnson, Rashmi Puri, along with Lindsay Vogtsberger from my staff as well. This has been a great collaboration. I appreciate the full support from the Members and the committee.
This legislation builds on the past successes of FHA's title I program by increasing the availability of title I loans for manufactured housing, encouraging more private sector participation and increasing access to the ever-important secondary mortgage market.
Manufactured housing has played a critical role in creating homeownership for families both in urban and rural settings across this country, across our State in Ohio. Unfortunately, manufactured housing is in the midst of a downturn, a downturn in housing production levels due in part to tightening of underwriting standards.
Historically, FHA title I programs have provided loans for financing mortgages of manufactured homes, which are homes leased on land. In 1992, FHA title I insured over 30,000 loans nationwide. In 2004, the number fell to 2,000. In Ohio, the chairman's home State and my home State, loans fell from a high in 1992 of 281, to only 15 written in 2004.
This bill incorporates recommendations from HUD's Commission of Independent Agency ``Report to Improve the title I Program.'' The legislation raises the maximum loan limits for manufactured homes on lots with annual indexing using the U.S. Census data. It also makes a number of changes, Mr. Speaker, to ensure the financial soundness of the program by allowing the Secretary of HUD to revise underwriting criteria.
Furthermore, the Congressional Budget Office estimates that implementing this piece of legislation will result in savings of half a million dollars a year.
Mr. Speaker, I am truly proud of the fact that I am the sponsor of this bill with Mr. Frank and look forward to its passage here in the House and hopefully passage soon in the Senate so that more Americans may achieve the American dream of homeownership.