On July 28, the House adopted legislation (H.R. 5872) increasing the commitment authority of the Federal Housing Administration’s (FHA) General Insurance and Special Risk Insurance (GI/SRI) Fund from $15 billion to $20 billion for FY2010. The Senate is expected to approve the measure under a unanimous consent agreement.

In June, Federal Housing Commissioner David Stevens notified leaders of the House and Senate Appropriations Committees that reported loan guarantee commitments within the GI/SRI fund exceeded $11.25 billion and that the agency was approaching the fund’s commitment limitation of $15 billion and that legislative authority was needed to exceed that limitation and prevent a disruption of service.

Stevens indicated that an increase of $5 billion was needed to ensure FHA would be able to honor commitments through the end of September 2010. The administration’s budget proposal also contains an increase in commitment authority to $20 billion for FY2011.

The GI/SRI Fund provides insurance for a variety of FHA loan programs, including the Title I program. Without the increase in commitment authority, FHA estimates that it will reach the currently enacted limitation of $15 billion for the fund sometime in August.

An earlier version of the FY2010 supplemental appropriations bill (H.R. 4899) contained an increase in the commitment authority, but the provision was eventually stripped out of the final bill.

For more information, contact MHI Vice President of Government Affairs Jason Boehlert at jboehlert@mfghome.org.