Providing for Consideration of H.R. 5818, Neighborhood Stabilization Act of 2008

Floor Speech

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Mr. Speaker, I thank the gentlewoman from Florida for yielding me time.

Mr. Speaker, I rise today in support of the rule and the underlying legislation.

The housing crisis has had an unprecedented effect on our economy. Our families, our neighborhoods, our communities are facing daily challenges, seeing increased foreclosures and vacancies everywhere they turn.

My own hometown of Sacramento is among the hardest hit in this country. Just last quarter, nearly 5,300 homes were foreclosed on. And sadly, there is no end in sight. My district is fifth in the Nation in adjustable rate mortgages, many of which are reset to higher rates in the near future.

To make matters worse, Forbes magazine ranks Sacramento among the highest in homeowner debt. Twenty-eight percent of homeowners in my district hold second mortgages and/or home equity lines of credit, making it much more difficult for them to save their homes.

This crisis is affecting everyone; homeowners who are in danger of foreclosure, renters who are being forced to move, and even families who are secure in their mortgages are seeing their home values fall, and increased neighborhood blight.

Mr. Speaker, this year I have met with many Sacramento families that are struggling with their mortgages in today's volatile economy. I have seen the sadness in their eyes and the emotional toll this crisis has taken on them. It is truly devastating. I met Susan at a foreclosure workshop. She had a traditional mortgage that was in good standing. Then, after repeated calls, she was steered by a lender to refinance her traditional loan into an adjustable rate loan so she could do home improvements. Now the loan is scheduled to reset soon, and she will have a difficult time making ends meet.

Another constituent, Jeanie, e-mailed me just last week. She has been forced to move twice already this year because the homes she was renting were foreclosed on. Without some stability in the housing market, Jeanie and her family, including their young daughter, will be forced to move again.

Mr. Speaker, we need to help these honest, hardworking homeowners immediately. This legislation is a step in the right direction. I urge support of this rule and this legislation.

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