Statement by the Press Secretary

In April 2006, the President sent Congress a bill to modernize the Federal Housing Administration. We're pleased that the U.S. Senate passed a bill today that would give FHA some of the additional flexibility it needs to provide more families with a safe, affordable mortgage financing option. Actions already taken by FHA have helped tens of thousands of additional homeowners in recent months. With good reform legislation, hundreds of thousands of homeowners could be helped before the end of FY2008. Some concerns remain with both the Senate and House bills. The President believes FHA should be able to design mortgage products that can help at-risk borrowers, reward borrowers with good credit histories, and protect taxpayers with actuarially sound financing. We hope to work with Congress to resolve those concerns in a conference between the House and Senate. Congress should quickly send to the President's desk a bill he can sign to help homeowners.