NH Senator supports bill to help people stay in homes, stem foreclosure rates, provide stability to the financial markets and restore confidence in the nation’s economy
WASHINGTON – July 26, 2008 – (RealEstateRama) — United States Senator Judd Gregg (R-NH), Ranking Member of the U.S. Senate Budget Committee, today applauded Senate passage of the Foreclosure Prevention Act of 2008 (H.R. 3221) to help stabilize and revitalize the nation’s ailing housing sector and financial markets while helping homeowners avoid mortgage delinquencies and defaults. The measure was passed by a vote of 72 to 13, and it now heads to the President’s desk for his signature.
Senator Gregg stated, “Our nation’s economy, financial markets, and homeowners are suffering through one of the worst housing market downturns in our nation’s history. Enactment of this legislation is one of the most important things our government can do right now to help prevent the collapse of our economy. During similar situations in the past, Congress has set up temporary programs to provide some relief, help bring stability to the markets, and prevent the economic harm from spreading. Along these lines, the bipartisan housing bill we just passed will set up a voluntary, temporary program at the Federal Housing Authority (FHA) to encourage homeowners and lenders to restructure their mortgages and avoid the foreclosure process. By having lenders write down the mortgages in exchange for FHA insurance protection, this program will help keep borrowers in their homes with more affordable payments. To help protect the U.S. taxpayer, the federal government will collect fees and obtain an equity share in the homes.
“The final version of this bill provides the Secretary of the U.S. Treasury temporary authority to buy stock in or lend money to government-sponsored enterprises (GSEs) that work with housing finance, specifically Freddie Mac, Frannie Mae, and Federal Home Loan Banks, to help stabilize and revitalize the faltering housing sector. While the final cost in the long run is uncertain, this provision makes possible an immediate and necessary lifeline to the economy should this authority be needed. We need to restore confidence in the markets, and we need to do this quickly before this financial crisis worsens.
“However, we must rectify the conditions that allowed the housing crisis to occur, so I am pleased this legislation also includes important reforms at Fannie Mae and Freddie Mac so that these entities are better regulated and will be on more sound financial footing. I also applaud the inclusion of certain tax benefits – namely, a tax credit for first-time homebuyers that will help reduce housing inventories.
“Of course, this bill will not solve all of our nation’s housing woes and could be improved in certain respects. However, it’s a bipartisan compromise that has involved some give-and-take on both sides as we try to address a serious problem facing our country. I therefore was pleased to support it, and look forward to working with my colleagues on other ways to address the economic concerns on the minds of many Americans.”
Contact: Andrea Wuebker/Laena Fallon
