Congresswoman Maxine Waters, D-Calif., and Rep. Michael Capuano, D-Mass., reintroduced a bill that's designed to strengthen the Federal Housing Administration by ensuring its long-term solvency.
The lawmakers re-proposed the 'FHA Emergency Fiscal Solvency Act' this week.
The provisions of the bill give FHA more flexibility to take action against loan originators that deploy faulty underwriting practices and lenders that end up with high loan losses.
"This legislation takes an important step towards improving the financial stability of the FHA," Waters said.
She added, "This is an important first step, and should be considered immediately, given that it was supported on such an overwhelming, bipartisan majority in the last Congress. It is time to move beyond discussion of this issue and take action."
Capuano said there's also a need to provide FHA with additional risk management tools, while increasing transparency and enhancing reporting requirements.
"Let's move forward now with what we agree on and work together to make additional improvements," he said.