Chris Sununu: “last week, I was pleased to support passage of the FHA Modernization Act, S. 2338. This legislation will update the FHA…”

“last week, I was pleased to support passage of the FHA Modernization Act, S. 2338. This legislation will update the FHA program so that it once again is better able to provide many low-income and first-time homebuyers another option as they try to secure a mortgage for a new home or to refinance an existing mortgage under more affordable terms. As some consumers experience credit tightening in the home mortgage and other financial markets, a byproduct of issues in the subprime mortgage market, the availability of stable financing alternatives is critically important to reducing the negative effects of the current market turmoil. While the FHA Modernization Act is not a silver bullet, it represents a responsible step the federal government can take to benefit thousands of borrowers around the country. Additionally, in the last several days Congress passed a measure, which I cosponsored, that encourages homeowners and their lenders to work out alternative payment plans that prevent individuals from losing their homes. The Mortgage Forgiveness Debt Relief Act, H.R. 3648, will protect taxpayers from an IRS tax bill in the event they have a portion of their mortgage debt forgiven. Under current law, homeowners entering foreclosure or refinancing their mortgage at a lower loan value due to a drop in housing prices, face an unfair and unwarranted tax. The last thing someone struggling to stay in their home needs is a huge tax obligation on income that they never saw.”