by Robert Schroeder, Marketwatch
WASHINGTON (MarketWatch) -- U.S. housing woes are set for a return to the congressional spotlight next week, with hearings planned about mortgages and subprime lending and action possible on a reform package for the Federal Housing Administration.
With more than two million loans expected to "reset" to higher rates over the next two years, lawmakers and Bush administration officials have been scrambling to address the weakened home market.
As soon as next week, the House could pass a bill that would boost the limit on loans that the housing agency may insure. The reform bill would also lower downpayment requirements on loans. Goldman Sachs analysts see the bill as likely to clear the House next week, and get through the Senate Banking Committee later this month or in October.
House Financial Services Committee Chairman Barney Frank said Tuesday an amendment he plans to offer next week would raise the limit on the size of loans that could be insured by the agency, with a provision that would allow more growth based on market conditions.
Meanwhile, Sen. Charles Schumer, D-N.Y., is planning a hearing about subprime lending issues for Wednesday.
Frank's committee is also planning a hearing, with Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson to testify. Scheduled for Thursday morning, the hearing will examine how to head off foreclosures.
On Aug. 31, President Bush urged lawmakers to reform the FHA and allow homeowners with good credit histories who are otherwise unable to afford their mortgage payments to refinance into FHA-insured mortgages.
Meanwhile, on Friday, Treasury Secretary Henry Paulson announced $27.3 million in grants to organizations that serve economically distressed communities. Paulson said the grants are intended to reach borrowers "who are likely to have trouble" and to help them keep their homes.
Robert Schroeder is a reporter for MarketWatch in Washington.
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