Statement of Senator Hillary Rodham Clinton on Senate Approval of FHA Reform

December 14, 2007 -- “Before the full scope of the subprime mortgage crisis was realized earlier this year, I called for an overhaul of the Federal Housing Administration to meet the needs of America’s working families and provide a real alternative to the subprime and predatory mortgage industry.

The reforms I’ve laid out in my FHA modernization bill, The 21st Century Housing Act, and elements of which are included in the Senate FHA bill include:

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* Allowing the FHA to make investments in both personnel and its information technology infrastructure to help meet the market demand for affordable mortgage products and work more efficiently with mortgage lenders and borrowers.
* Increasing the FHA's mortgage limits which will help create more home buying opportunities, especially in high cost-of-living states like New York, so that working families don't get priced out of their own neighborhoods.
* Allowing the FHA to develop responsible mortgage products.

I am pleased that the Senate has taken action to enact these long overdue reforms and provide some real relief to struggling families caught in the middle of this housing crisis. I urge swift action on this issue and I urge the President to sign meaningful FHA reform into law as soon as possible.”

Source: Senator Hillary Clinton