[Congressional Record Volume 141, Number 87 (Wednesday, May 24, 1995)]
[Extensions of Remarks]
[Page E1116]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


 INTRODUCTION OF THE FEDERAL MORTGAGE INSURANCE CORPORATION ACT OF 1995

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                           HON. JERRY WELLER

                              of illinois

                    in the house of representatives

                         Wednesday, May 24, 1995
  Mr. WELLER. Mr. Speaker, I stand here today to introduce legislation 
that will allow many Americans--the low and middle income, first-time 
homebuyers and minorities--to embark on a venture that is inherently 
part of the American dream. The bill I am introducing--the Federal 
Mortgage Insurance Corporation Act of 1995--will give a helping hand to 
those who want to buy a home and make a better life for themselves and 
their families. Owning a home instills a sense of pride and 
responsibility and this bill will ensure that anyone in our society--
not just the wealthy--can afford to buy a home here in the United 
States of America.
  The purpose of this legislation is to establish a Government 
corporation to administer the highly successful single-family mortgage 
insurance program currently under the management of the Federal Housing 
Administration at the Department of Housing and Urban Development. 
Under a corporate structure, the single family program will be better 
equipped to respond more efficiently to the needs of Americans in 
pursuit of the dream of home ownership.
  The Corporation will be run by a Board of Directors made up of 
experts in housing finance and leaders in community action whose 
neighborhoods have been well served by FHA over many years. The board 
will appoint a President who will run the day to day operations like 
any other president. The act relieves the Corporation of burdensome 
civil service restrictions and procurement requirements and provides 
paperwork reductions that can hamper the productivity and progress of 
the noblest of objectives that we undertake.
  Also, like other corporations, the FMIC must carry on the FHA single 
family program tradition of being a self-sufficient enterprise. 
Congress can only appropriate funds for the FMIC to the extent that the 
Corporation has net income. Moreover, the Office of Federal Housing 
Enterprise Oversight will oversee the capitalization of the FMIC funds 
as well as the safety and soundness of its products.
  The FMIC will also continue the successful mission of the FHA only 
more efficiently. The act will expand homeownership opportunities for 
those segments of the market that need it most: first time homebuyers, 
lower income families, and minorities. The FMIC's greater flexibility 
will allow an even greater portion of this market to gain sorely needed 
access to capital and credit.
  The Federal Mortgage Insurance Corporation act of 1995 will continue 
the successful public-private partnership of FHA. More families will be 
able to share in American dream of homeownership and it does not 
involve a subsidy from the government. This is exactly the kind of 
effective governance that the American people expect and deserve.
  My legislation carries forward the message of the November 8 
election: calling on us all to streamline and reduce bureaucracy and to 
do a better more efficient job, in this case promoting the basic 
American dream of homeownership.


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