The recent economic downturn may have at least one advantage: pushing along passage of FHA modernization. The Financial Times reports that Senator Chris Dodd is seeking a long term economic stimulus plan that he feels must include getting an FHA reform bill passed. Dodd has also suggested the government buy mortgages from home owners in trouble. Dodd plans to meet with Representative Barney Frank to try to straighten out the differences between the House and Senate versions of the bill, which has been keeping this at a standstill.

Mr Dodd said he would meet Barney Frank, House financial services committee chairman, on Thursday “to talk about how we can reconcile these two bills, so that it could be a part of the stimulus package as well”.

“I want to get beyond just [tax] rebates … If this is in fact a [mortgage] foreclosure crisis then we need to be doing something if we can about the housing issue,” Mr Dodd told reporters.

Let’s cross our fingers that things will get moving along and FHA reform can become a reality!

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