Housing
More on Housing
by Arthur D. Postal
President Obama on Friday morning signed into law an extension of the National Flood Insurance Program until Sept. 30.
The bill is H.R. 5569, the "National Insurance Program Extension Act of 2010."
The bill is retroactive to June 1, when the authorization for the program lapsed for the fourth time in several years.
The bill also reduces the borrowing authority of the Federal Emergency Management Agency, which runs the program, by $50 billion to $20.725 billion.
By Kevin G. Hall and David Lightman
Rushing to deliver the broad strokes of an overhaul of the financial regulatory system before leaders of the world's major economies meet in Toronto over the weekend, lawmakers Friday morning partially reinstated a ban on risky betting by commercial banks.
In a marathon session, negotiators from the House of Representatives and the Senate reached a compromise that would limit commercial banks from engaging in Wall Street trading if they're also conducting trading activities on behalf of clients.
by Ronald D. Orol
As House and Senate negotiators continue to work out differences in their versions of bank reform, a House proposal to have $3 billion used to help unemployed homeowners avoid foreclosure may prove to be a sticking point.
Several other disputes still lay ahead, particularly a section that would force banks to spin off derivatives units and a provision known as the "Volcker rule" that would prohibit banks that have federal guarantees from trading on their own account.
by Shahien Nasiripour
As few as 0.1 percent of mortgage modifications initiated under the Obama administration's signature foreclosure prevention program involve reductions of principal, according to a federal report released Wednesday.
Research by state regulators, academics, and by the Federal Reserve shows that principal reductions lead to more sustainable loan modifications. In other words, they're the best way to ensure that troubled borrowers don't lose their homes.
The House overwhelmingly approved a bill Thursday aimed at helping the Federal Housing Administration rebuild its capital reserves.
The bill, which passed 406 to 4, will allow the FHA to raise annual premiums on borrowers, helping to bolster its Mutual Mortgage Insurance Fund. The fund has seen loan losses deplete its capital ratio to 0.53%, well below its statutory minimum of 2%.
Higher premiums would bolster the agency's ability to draw more capital into its reserves and strengthen its diminished fund.