According to CNNMoney, lawmakers are optimistic that they will be able to send a bill for FHA Reform to President Bush by April.

Really?

I wonder what it will include and what it won't include.

According to the article, possible changes include:

Permanently raise loan limits.
The economic stimulus bill passed in February temporarily increased the limit on loans eligible to be FHA-insured. The ceiling until Dec. 31, 2008 is now $729,750, up from the normal $362,790 for single-family homes. Those are the ceilings for high-cost areas. The ceiling is lower in low-cost housing markets.

Reduce down payment requirements.
Homeowners would no longer be required to have 3% equity or the cash equivalent to get an FHA-insured loan. The House bill would allow borrowers to get an FHA-insured loan with 0% down if they can show they can afford the mortgage payments. The Senate bill requires 1.5%.

Make it easier for borrowers in high-cost loans to refinance. The House bill would let some homeowners in default or at risk of default refinance into an FHA-insured loan.

Stay tuned, when the FHA Modernization bill finally comes out (?, ! or .) it will be interesting to watch -- that much is guaranteed.