[Congressional Record Volume 154, Number 81 (Friday, May 16, 2008)]
[Extensions of Remarks]
[Pages E956-E957]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   FORECLOSURE PREVENTION ACT OF 2008

                                 ______
                                 

                               speech of

                       HON. LUCILLE ROYBAL-ALLARD

                             of california

                    in the house of representatives

                         Thursday, May 8, 2008

  Ms. ROYBAL-ALLARD. Madam Speaker, I rise in strong support of the 
American Housing Rescue and Foreclosure Prevention Act, and I thank 
Chairman Frank and Chairwoman Waters for bringing this important 
legislation to the House floor.
  Madam Speaker, we are all painfully aware of the fact that 
communities across the Nation are being devastated by the current 
housing crisis. The reforms in this legislation will help many 
homeowners stay in their homes and prevent a similar situation from 
happening again.
  The problems caused by subprime and adjustable-rate mortgages are 
particularly acute

[[Page E957]]

in California, which has the second highest foreclosure rate in the 
Nation. One in every 78 families is now facing foreclosure in my State. 
This legislation makes many important reforms to address the current 
crisis, and I would like to highlight two provisions which I believe 
are particularly critical for Californians.
  First, the measure will expand the FHA program so that homeowners at 
risk of facing foreclosure can refinance into viable mortgages that are 
government-backed. Many of my constituents are facing ballooning 
payments on their mortgages which now far exceed the actual value of 
their homes. This measure will give them the opportunity to get their 
finances back on track and keep their homes.
  Second, and perhaps most helpful to addressing the crisis in my home 
State, the legislation makes permanent the FHA loan limit and GSE 
conforming loan limits temporarily increased by the Economic Stimulus 
Act. The previous GSE conforming loan limit of $417,000 and the FHA-
insurable loan limit of $362,000 simply were not high enough to be 
effective for high cost regions such as California, where the average 
cost of a home greatly exceeds the national average.
  GSE and FHA backing of mortgages are key to ensuring access to 
affordable mortgages for many home buyers and homeowners. Permanently 
increasing loan limits is perhaps the single most important thing we 
can do to ensure that Californians can benefit from congressional 
efforts to address the mortgage crisis and have access to affordable, 
fixed-rate mortgages.
  I urge my colleagues to do the right thing and vote in support of 
this legislation so that we can help our neighbors keep their homes and 
begin to revitalize our communities.

                          ____________________