H.R. 3221, American Housing Rescue and Foreclosure Prevention Act

H.R. 3221, AMERICAN HOUSING RESCUE AND FORECLOSURE PREVENTION ACT -- (Extensions of Remarks - May 21, 2008)

SPEECH OF
HON. BETTY McCOLLUM
OF MINNESOTA
IN THE HOUSE OF REPRESENTATIVES
TUESDAY, MAY 20, 2008

* Ms. MCCOLLUM of Minnesota. Madam Speaker, I rise today in strong support of the American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) and to Chairman Frank and Speaker Pelosi for their quick action to help American families.

* The United States is facing a housing crisis. Nationally, between 7,000 and 8,000 people a day are filing for foreclosure, and estimates show that over 28,000 Minnesotans will lose their homes to foreclosure in 2008. Foreclosures hurt our families, neighborhoods, and communities. I saw the impact of the foreclosure crisis firsthand when I recently visited the East Side neighborhoods in St. Paul who are hit hard by this crisis. Foreclosures result in reduced property values for neighbors and lost tax revenue for states and local governments, as well as contribute to criminal activity. The high rate of foreclosure also has a substantial spillover effect on financial markets and the broader economy through the loss of jobs.

* Congress has a role in protecting families and neighborhoods from an expansion of this crisis, which is why I support the Foreclosure Prevention Act (H.R. 3221). H.R. 3221 is Congress' most comprehensive response yet to address housing affordability and the rising numbers of foreclosures. This legislation will help troubled borrowers avoid foreclosure while minimizing taxpayer exposure. It expands the FHA program so that borrowers in danger of losing their home can refinance into lower-cost government-insured mortgages they can afford to repay. This voluntary program is not a bailout as mortgage investors must take significant losses by reducing the loan principal. This bill also strengthens regulation of Fannie Mae and Freddie Mac, raises the GSE loan limit, and increases homeownership opportunities for our veterans. To increase investment and confidence in the real estate market, this bill also includes tax provisions to aid potential homebuyers. I am pleased to be able to cast a vote for this legislation to help play a part to keep families in their homes.

* The U.S. House has also taken action to help our communities deal with the cost of foreclosure. The Neighborhood Stabilization Act (H.R. 5818), of which I am a cosponsor, focuses on the communities that have been hit hardest by foreclosures as many foreclosed homes are currently vacant creating neighborhood blight and bringing down property values. This bill will establish a $15 billion HUD grant providing state and localities with the funds to purchase, rent, or rehabilitate of vacant foreclosed homes with the goal of occupying them as soon as possible.

* These housing measures are an important step to help families facing foreclosure keep their homes, help other families avoid foreclosures in the future, and help communities harmed by empty homes in the foreclosure process. The dream of homeownership has become a nightmare for too many people in our community. We need this legislation will help rebuild our neighborhoods and our economy.

* H.R. 3221 is an important step in addressing the crisis in the housing market to help families, communities and our economy. I urge my colleagues to support this legislation and move our housing policy in a new direction.

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