Wednesday, May 7, 2008

Administration Opposition to Housing Bills.

Presidents signal their positions on key Congressional bills in what are called "Statements of Administration Policy"(SAP). An index of these SAP's for the current congressional session, for non appropriations bills, are indexed HERE.

Two SAP's on housing bills appeared yesterday.
H.R. 3221
H.R 5818

A read of the H.R. 3221 SAP suggests that the prior H.R. 5830 has been or may be incorporated into H.R.3221. A Politico story HERE suggests that while the Administration has raised a veto threat for the housing legislation, that may be part of a negotiation strategy. My personal view is that a key part of any negotiation will be strong desire to introduce some form of risk based pricing into FHA loan products.

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