Wells Fargo released the results of a study late yesterday that found more than 80 percent Americans support proposed modernization of the FHA lending program. The proposed legislation, called the The Expanding Homeownership Act, is currently being debated by Congress. The study also found most Americans are unaware of the Act, but once they have had the Act explained to them, support it overwhelmingly.

Four in five Americans (80%) favor changing “the rules to make it easier for the FHA to make mortgage loans available to first time homeowners and people with moderate incomes.” Fifty-five percent (55%) feel this way strongly, while just 12% express any level of opposition and 8% are undecided.

Also interesting is the fact that African-Americans are more aware of the Act than their White or Hispanic counterparts:

Only 35% of African Americans are unaware of the Expanding American Homeownership Act of 2007, compared to majorities of whites (55%) and Hispanics (51%).

Wells Fargo released the results of its study at the “Safeguarding the American Dream” symposium sponsored by the bank, held yesterday in Washington, DC. Update: HUD also put out a press release about this, with Sec. Alphonso Jackson saying the need to modernize FHA was “urgent.”