Duffy Votes to Save Over $8 Billion By Ending Failed Government Program
Issue Position
U.S.Congressman Sean Duffy issued the following statement today after the House passed H.R. 830, the FHA Refinance Program Termination Act:
"Most Wisconsinites and Americans know that our federal government is spending too much money that we don't have on programs that aren't working. Part of reforming the way Congress spends federal tax dollars must include examining and ending ineffective government initiatives.
"The legislation the House passed today does exactly that. While this program, like all government programs, may have been well-intentioned, it is a failure by every objective measure. When a government program designed to help struggling homeowners spends more to save a single borrower than it would cost to buy their home--it's more than inefficient, it's illogical and a waste of precious tax dollars.
"While rescinding the more than $8 billion still languishing in this unsuccessful program will not solve our nation's budgetary woes or even the ailing housing market, it is an important step in the right direction. For too long, government has expanded to the detriment of the private sector and the escalating deficit and debt threatens any hope for a secure future. The best mortgage assistance program isn't government, it's a job. That's why this Congress is going to continue to pursue pro-growth policies that will empower and encourage entrepreneurs to innovate, invest and get our people back to work."
BACKGROUND:
In March 2010, the Administration announced the creation of the FHA Refinance Program to refinance underwater loans into the FHA. The program is funded with $8.1 billion in TARP funds. According to Treasury's TARP Progress Report, only $50 million of this $8 billion had been disbursed as of February 3. The Administration originally estimated this program would help between 500,000 and 1.5 million homeowners. However, only 44 loans have been refinanced as of mid-February and only 245 applicants have been submitted, according to FHA Commissioner David Stevens. Without action by Congress, the FHA Refinance Program will continue until December 31, 2012.
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