[Congressional Record Volume 154, Number 84 (Wednesday, May 21, 2008)]
[Extensions of Remarks]
[Page E988]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   H.R. 3221, AMERICAN HOUSING RESCUE AND FORECLOSURE PREVENTION ACT

                                 ______
                                 

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                         Tuesday, May 20, 2008

  Ms. McCOLLUM of Minnesota. Madam Speaker, I rise today in strong 
support of the American Housing Rescue and Foreclosure Prevention Act 
(H.R. 3221) and to Chairman Frank and Speaker Pelosi for their quick 
action to help American families.
  The United States is facing a housing crisis. Nationally, between 
7,000 and 8,000 people a day are filing for foreclosure, and estimates 
show that over 28,000 Minnesotans will lose their homes to foreclosure 
in 2008. Foreclosures hurt our families, neighborhoods, and 
communities. I saw the impact of the foreclosure crisis firsthand when 
I recently visited the East Side neighborhoods in St. Paul who are hit 
hard by this crisis. Foreclosures result in reduced property values for 
neighbors and lost tax revenue for states and local governments, as 
well as contribute to criminal activity. The high rate of foreclosure 
also has a substantial spillover effect on financial markets and the 
broader economy through the loss of jobs.
  Congress has a role in protecting families and neighborhoods from an 
expansion of this crisis, which is why I support the Foreclosure 
Prevention Act (H.R. 3221). H.R. 3221 is Congress' most comprehensive 
response yet to address housing affordability and the rising numbers of 
foreclosures. This legislation will help troubled borrowers avoid 
foreclosure while minimizing taxpayer exposure. It expands the FHA 
program so that borrowers in danger of losing their home can refinance 
into lower-cost government-insured mortgages they can afford to repay. 
This voluntary program is not a bailout as mortgage investors must take 
significant losses by reducing the loan principal. This bill also 
strengthens regulation of Fannie Mae and Freddie Mac, raises the GSE 
loan limit, and increases homeownership opportunities for our veterans. 
To increase investment and confidence in the real estate market, this 
bill also includes tax provisions to aid potential homebuyers. I am 
pleased to be able to cast a vote for this legislation to help play a 
part to keep families in their homes.
  The U.S. House has also taken action to help our communities deal 
with the cost of foreclosure. The Neighborhood Stabilization Act (H.R. 
5818), of which I am a cosponsor, focuses on the communities that have 
been hit hardest by foreclosures as many foreclosed homes are currently 
vacant creating neighborhood blight and bringing down property values. 
This bill will establish a $15 billion HUD grant providing state and 
localities with the funds to purchase, rent, or rehabilitate of vacant 
foreclosed homes with the goal of occupying them as soon as possible.
  These housing measures are an important step to help families facing 
foreclosure keep their homes, help other families avoid foreclosures in 
the future, and help communities harmed by empty homes in the 
foreclosure process. The dream of homeownership has become a nightmare 
for too many people in our community. We need this legislation will 
help rebuild our neighborhoods and our economy.
  H.R. 3221 is an important step in addressing the crisis in the 
housing market to help families, communities and our economy. I urge my 
colleagues to support this legislation and move our housing policy in a 
new direction.

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