I recently spoke with Mary Trupo of the National Association of Realtors (NAR) about the current FHA modernization situation. Like many supporters of modernization, Trupo stressed that time is of the essence when it comes to making changes to the FHA. This is particularly important, she explained, because of the escalating situation with the sub-prime market. “If we can modernize FHA quickly we can A) Make sure people don’t run into the same problems of today and B) Help others affected by the sub-prime problems,” she said.

Trupo credited the strong bipartisan support for modernization as the most powerful factor in moving things along and commends Chairman Frank and his committee members on the Financial Services Committee for working quickly. NAR’s hope is that the issue will remain in a prominent position on the calendar.

As for the controversial issue of down payments, NAR supports the House bill with a 0% down payment. According to Trupo, the Association could also get behind Senator Dodd’s proposal for a 1.5% cash down investment. The cash down would serve as a commitment to a borrower’s investment and a safeguard against foreclosure.

I’d like to thank Mary Trupo for taking the time to speak with me and providing a great kickoff for this series.

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