MHI Week-in-Review reports from the halls of Congress that Rep. John Lewis (D-Ga.) introduced legislation (H.R. 1632) that would re-authorize and improve Assets for Independence (AFI), a federal grant program to help people out of poverty. The bill offers funding to repair substandard homes or replace them as well as pre-1976 HUD code homes. The bill would allow down payment assistance of up to $10,000.
In other action, legislation introduced by Rep. Gary Peters (D-Mich.) and John Campbell (R-Ca.) (HR-1859) would place Fannie Mae and Freddie Mac in formal receivership, wind down their portfolios within five years; and replace them with several private companies that would issue mortgage-backed securities with explicit federal guarantees. In addition, manufactured home loans would be considered “conventional mortgages,” as long as personal property can be distinguished from real property.