[Congressional Record Volume 153, Number 140 (Thursday, September 20, 2007)]
[Extensions of Remarks]
[Page E1936]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              EXPANDING AMERICAN HOMEOWNERSHIP ACT OF 2007

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    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:

  Ms. McCOLLUM of Minnesota. Madam Chairman, I rise today in strong 
support of the Expanding American Homeownership Act and commend the 
Democratic leadership, Chairman Frank, and Chairman Waters for their 
commitment to increasing access to affordable housing.
  Our country is currently in the middle of a subprime mortgage crisis. 
In my congressional district alone, there are 796 homes involved in 
foreclosure right now. The University of Minnesota's Center for Urban 
and Regional Affairs report, Subprime Lending and Foreclosure in 
Hennepin and Ramsey Counties, speculates that the problem of 
foreclosures starts with predatory lending practices that are aimed at 
removing equity from homes through refinancing a home multiple times.
  H.R. 1852 takes an important step to prevent American families from 
ever having to turn to a predatory lender by providing them with a 
reliable source for affordable mortgage loans. This legislation 
revitalizes and reforms the Federal Housing Administration, FHA, 
enabling it to serve more subprime borrowers, offer refinancing to 
families struggling to make mortgage payments, and create additional 
affordable rental housing.
  This legislation also authorizes more than double the current funding 
level for housing counseling to help subprime home buyers, higher risk 
borrowers who fall behind on their mortgage payments, and those who 
need additional guidance in establishing a plan for purchasing their 
home.
  We must do more to ensure that all individuals and families have safe 
and stable housing. For this reason, the Expanding American 
Homeownership Act authorizes up to $300 million a year for an 
affordable housing trust fund, which will be financed by excess 
profits, resulting from the expansion of FHA's loan offerings.
  H.R. 1852 enables the FHA to preserve and expand its mission of 
helping potential first-time home buyers obtain affordable mortgages. I 
urge my colleagues to join me in helping more families achieve the 
America dream of home ownership by voting for this bill.

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