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House Passes FHA Refinance Program Termination Act

Jupiterimages/Thinkstock(WASHINGTON) -- The House approved final passage of H.R. 830 - FHA Refinance Program Termination Act by a vote of 256-171.

The bill will begin shutting down the TARP bailout program, saving taxpayers $8 billion in mandatory government spending by eliminating the Federal Housing Administration’s recently implemented short refinancing program. The FHA Refinance Program was designed to refinance homes purchased under FHA loans, but has resulted in the refinancing of only 22 homes as of the end of December 2010, according to the Congressional Research Service.

Speaker of the House John Boehner, R-Ohio, reacted after the vote:

“I’m pleased the House has voted to save taxpayers billions of dollars by beginning to shut down the TARP bailout program.  The American people understand we can’t continue spending money we don’t have, especially on things that don’t work.  That’s why we’re focusing not just on discretionary spending, but mandatory spending as well.  Unfortunately, the Democrats who run Washington believe in this time of fiscal challenges we should continue propping up government programs that overspend and under-deliver.  The new majority in the House will continue to listen to the American people, who want us to cut spending to end uncertainty for small businesses and help them begin hiring again.  I hope the Senate will give these spending cuts the consideration they deserve.”

On Tuesday, the White House threatened to veto the measure. The bill now heads to the Senate, where it’s unlikely to pass.

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