[Congressional Record Volume 153, Number 139 (Wednesday, September 19, 2007)]
[Extensions of Remarks]
[Page E1930]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              EXPANDING AMERICAN HOMEOWNERSHIP ACT OF 2007

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                               speech of

                            HON. MARK UDALL

                              of colorado

                    in the house of representatives

                      Tuesday, September 18, 2007

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 1852) to 
     modernize and update the National Housing Act and enable the 
     Federal Housing Administration to use risk-based pricing to 
     more effectively reach underserved borrowers, and for other 
     purposes:

  Mr. UDALL of Colorado. Madam Chairman, I rise in support of the 
Expanding American Homeownership Act. Homeowners in Colorado and 
nationwide are facing a crisis and passage of this bill will ensure 
continued access to responsible, safe, and affordable mortgage options.
  There are serious problems with our country's mortgage lending 
market. Foreclosure rates are rising, housing prices are stagnating and 
too many Americans are surprised to find their monthly payments on the 
rise. While the difficulties in the lending market have so far been 
concentrated in subprime loans, which generally go to borrowers with 
limited or damaged credit, these problems have caused serious and 
sometimes irreparable economic damage to families and communities of 
all income levels throughout the Nation.
  I am pleased that this legislation modernizes the Federal Housing 
Administration, FHA, to provide lower monthly payments for borrowers 
who make on-time payments, raises the loan limits on FHA loans and 
allows the FHA to vary premiums based on their credit risk. These 
provisions, among others, will allow consumers to choose a more 
reliable mortgage as opposed to other mortgages that could impose 
excessive rates and fees, prepayment penalties, and reset terms that 
can result in exorbitant interest rate increases.
  While this bill is not a complete fix for the problem, it is an 
important step in the right direction. It is vital to provide FHA with 
the flexibility to respond to the mortgage crisis to help families in 
Colorado and the Nation to retain and purchase or a home. I urge a 
``yea'' vote.

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