[Congressional Record Volume 147, Number 161 (Tuesday, November 27, 2001)]
[Extensions of Remarks]
[Page E2140]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   H.R. 3206, THE ``HOME OWNERSHIP EXPANSION AND OPPORTUNITIES ACT''

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                         HON. JAMES H. MALONEY

                             of connecticut

                    in the house of representatives

                       Tuesday, November 27, 2001

  Mr. MALONEY of Connecticut. Mr. Speaker, I come to the floor today to 
make a brief statement about my cosponsorship of H.R. 3206, the ``Home 
Ownership Expansion and Opportunities Act.''
  By cosponsoring this legislation, I am expressing my support for new 
ideas to provide additional opportunities for homeownership. This 
legislation is intended to bring more competition into the secondary 
mortgage marketplace, the result of which will be more opportunities 
and lower costs for homebuyers.
  The ``Home Ownership Expansion and Opportunities Act'' would allow 
the Government National Mortgage Association (GNMA) to guarantee the 
securities of conventional mortgages above the 85 percent loan to value 
ratio, up to the statutory conventional mortgage limit. In case of 
default, the participating private mortgage insurance companies (PMIs) 
would bear the first level of loss.
  Of course, our current mortgage financing system works well. After 
all, homeownership in the United States is at an all time high. Any 
system can be improved, however, so long as no industry or company is 
ceded any structural competitive advantage.
  Like any legislation, this proposal takes calculated risks to achieve 
demonstrable gains. First, the federal government will guarantee these 
mortgages. I see no reason, therefore, why we wouldn't see to it that 
certain affordable housing goals are met and enforced. In doing so we 
will ensure that all American's have access to affordable financing so 
they can realize their dream of home ownership.
  Additionally, because the federal government will be taking on some 
of the risk associated with these mortgages, we must ensure that the 
program is managed in the most fiscally prudent manner. That is why the 
legislation includes a provision that any PMI participant receive an AA 
rating or better from a nationally recognized rating agency, and must 
meet additional requirements as determined by the Government National 
Mortgage Association (GNMA). While the PMIs are regulated at the state 
level, we may want to consider additional safety and soundness 
mechanisms, to further minimize the risk to taxpayers.
  I look forward to working with my colleagues as this proposal moves 
through the legislative process. This bill serves as a starting point 
to begin the debate on how best to accomplish our goal of increasing 
homeownership for all Americans.

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