Expanding American Homeownership Act of 2007

Floor Speech

EXPANDING AMERICAN HOMEOWNERSHIP ACT OF 2007 -- (Extensions of Remarks - September 20, 2007)

SPEECH OF HON. BETTY McCOLLUM OF MINNESOTA IN THE HOUSE OF REPRESENTATIVES

The House in Committee of the Whole House on the State of the Union had under consideration the bill (H.R. 1852) to modernize and update the National Housing Act and enable the Federal Housing Administration to use risk-based pricing to more effectively reach underserved borrowers, and for other purposes:

* Ms. McCOLLUM of Minnesota. Madam Chairman, I rise today in strong support of the Expanding American Homeownership Act and commend the Democratic leadership, Chairman Frank, and Chairman Waters for their commitment to increasing access to affordable housing.

* Our country is currently in the middle of a subprime mortgage crisis. In my congressional district alone, there are 796 homes involved in foreclosure right now. The University of Minnesota's Center for Urban and Regional Affairs report, Subprime Lending and Foreclosure in Hennepin and Ramsey Counties, speculates that the problem of foreclosures starts with predatory lending practices that are aimed at removing equity from homes through refinancing a home multiple times.

* H.R. 1852 takes an important step to prevent American families from ever having to turn to a predatory lender by providing them with a reliable source for affordable mortgage loans. This legislation revitalizes and reforms the Federal Housing Administration, FHA, enabling it to serve more subprime borrowers, offer refinancing to families struggling to make mortgage payments, and create additional affordable rental housing.

* This legislation also authorizes more than double the current funding level for housing counseling to help subprime home buyers, higher risk borrowers who fall behind on their mortgage payments, and those who need additional guidance in establishing a plan for purchasing their home.

* We must do more to ensure that all individuals and families have safe and stable housing. For this reason, the Expanding American Homeownership Act authorizes up to $300 million a year for an affordable housing trust fund, which will be financed by excess profits, resulting from the expansion of FHA's loan offerings.

* H.R. 1852 enables the FHA to preserve and expand its mission of helping potential first-time home buyers obtain affordable mortgages. I urge my colleagues to join me in helping more families achieve the America dream of home ownership by voting for this bill.

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