Walberg: Flawed Housing Legislation Soaks Taxpayers While Bailing Out Speculators, Lenders
Press Release
Congressman says legislation will allow taxpayer money to insure speculative investments
U.S. Congressman Tim Walberg (R-MI) today made the following statement opposing legislation pushed through Congress by House Leadership that would put taxpayers on the line for $300 billion in speculative securities, while adding a new tax on mortgages. The legislation would force hard-working Americans to accept the risk for the bad choices of speculators who knowingly purchased risky securities.
"Today the House voted to revise the great American tradition that hard work, responsible investment and diligent savings leads to home ownership, and sadly, the President stands by ready to support this flawed legislation," Walberg said. "In Michigan, we know firsthand how our struggling economy has frustrated people who've had dreams of home ownership and put many folks in difficult situations. Rather than allow the government to reward risky investments, Congress should work on policies that promote home ownership and keep alive the dream of owning a home for all Americans. Michigan taxpayers cannot afford to pay for the irresponsibility and blatant recklessness of mortgage servicers and speculators, and this legislation forces hard working families to backup $300 billion in risky mortgage securities and adds a new tax on mortgages, which will only slow any economic recovery and job growth. The best way out of the current housing crisis is to create more good-paying jobs which will help all Americans purchase homes."
BACKGROUND:
- Congressman Walberg
Voted for the Expanding American Homeownership Act, which will help more low- and moderate-income American families realize the dream of home ownership, and will prevent many first time and inexperienced home buyers from being pushed into loans that are unaffordable. This legislation will increase flexibility for borrowers regarding the down payment process and down payment options.
Voted to stop taxes on mortgage debt forgiveness.
Voted to modernize the Home Equity Conversion Mortgage Program and help more seniors afford to stay in their home and afford Mortgage Insurance, along with increased counseling to help make consumers more informed to prevent fraud and abuse.
Voted to provide a $7,500 tax credit for low and middle class first time homebuyers.
Is advancing an agenda to grow our economy and create good-paying jobs, stop tax increases and lower the tax burden, make government live within its means and balance the budget, make health care more affordable, and advance education and training.
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