I thank the gentleman for yielding and for his leadership on this very important rule, and I rise in strong support of the rule and for the underlying bill, a housing stimulus package that will provide real relief for struggling homeowners…
I thank the gentleman for yielding and for his leadership on this very important rule, and I rise in strong support of the rule and for the underlying bill, a housing stimulus package that will provide real relief for struggling homeowners and will bring certainty to the markets.
We are at a critical juncture in the subprime mortgage crisis. All of the data we have clearly demonstrate the severity of the problem. We have seen the perfect storm of stagnant wages, rising mortgage payments, and decreased home values, all of which have led to a record level of delinquencies and foreclosures. One recent study by the Pew Charitable Trust has found that one in two New York homeowners is projected to face foreclosure, primarily in the next 2 years, due to the subprime crisis.
This same study documents the ripple effect this crisis is having on our entire economy. Their analysis found that 52 percent of all homeowners will likely feel the ripple effect of foreclosures from the subprime loan crisis. Communities are negatively affected as foreclosures drive down home prices overall, diminishing homeowners' equity in entire neighborhoods. Costs also accrue to our local government in the form of lost tax revenue and direct expenses for securing, policing, and disposing of abandoned properties.
This is why this housing stimulus package is so terribly important. This is a well-crafted package which includes an expanded FHA Refinance Program totaling $300 billion. This voluntary program would permit FHA to provide up to $300 billion in new guarantees to help refinance at- risk borrowers into viable mortgages.
The only way we are going to solve this problem is through a multi- prong strategy. We have fully engaged the regulators, industry is working with homeowners; but we also need sound public policy that allows for many of these unaffordable subprime loans to be refinanced into viable mortgages homeowners can afford.
Another key part of this package includes the FHA and GSE modernization bills which we have already passed in this House but has yet to pass the Senate. The FHA bill will modernize the program opening it up to new homeowners and providing opportunities for long-term fixed mortgages. The modernized FHA will be the new financing option of many previous subprime borrowers, and it will be done in a way to ensure borrowers are receiving viable and affordable loans. The GSE bill will provide for a strong dependent regulator for Freddie Mac and Fannie Mae and the 12 Federal home loan banks.
Again, this is a well-crafted package. I ask permission to revise and extend to include all of the important parts of this package.
I urge a ``yes'' vote on this underlying bill.
I rise in support of a housing stimulus package that will provide real relief for struggling homeowners and will bring certainty to the markets.
We are at a critical juncture in the subprime mortgage crisis. All of the data we have clearly demonstrates the severity of the problem.
We have seen the perfect storm of stagnant wages, rising mortgage payments and decreased home values. All of which have led to a record level of delinquencies and foreclosures.
One recent study by the Pew Charitable Trust has found that one in 32 New York homeowners is projected to face foreclosure, primarily in the next two years, because of subprime loans.
This same study documents the ripple effect this crisis is having on our entire economy. Their analysis found that 52% of all homeowners will likely feel the ripple effects of foreclosures from subprime loans.
Communities are negatively affected as foreclosures drive down home prices overall, diminishing homeowners' equity in entire neighborhoods. Costs also accrue to local governments in the form of lost tax revenue and direct expenses for securing, policing and disposing of abandoned properties. That is why this housing stimulus package is so important.
This is a well crafted package which includes an expanded FHA Refinance Program totaling $300 billion.
This voluntary program would permit FHA to provide up to $300 billion in new guarantees to help refinance at-risk borrowers into viable mortgages.
They only way we are going to solve this problem is through a multi- prong strategy. We have fully engaged the regulators, industry is working with homeowners, but we also need sound public policy that allows for many of these unaffordable subprime loans to be refinanced into viable mortgages homeowners can afford.
Another key part of this package includes the FHA and GSE modernization bills that we have already passed the House, but have yet to be passed by the Senate.
The FHA bill will modernize the program opening it up to new homeowners and providing opportunities for long-term, fixed mortgages. The modernized FHA will be the new financing option of many previous subprime borrowers and it will be done in a way to ensure borrowers are receiving viable and affordable loans.
The GSE bill will provide for a strong independent regulator for Freddie Mac, Fannie Mae and the 12 Federal Homeloan Banks. It will also enhance Freddie and Fannie's mission to provide affordable housing. This bill will also make permanent the increased loan limits passed as part of the economic stimulus package. This increase is incredibly important in high-cost areas such as New York City in ensuring these products are available to our constituents.
Again, this is a well crafted package and I urge my colleagues to support it.