[Congressional Record Volume 154, Number 115 (Monday, July 14, 2008)]
[Senate]
[Page S6646]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   FORECLOSURE PREVENTION ACT OF 2008

  Mr. KOHL. Mr. President, I am very pleased that the Senate has passed 
legislation which will help our troubled housing market. This bill will 
reform the oversight of the government-sponsored enterprises--Fannie 
Mae, Freddie Mac and the Federal Home Loan Banks--and also provided 
much needed relief for communities and homeowners combating 
foreclosures.
  The first piece of this large housing bill is the Federal Housing 
Finance Regulatory Reform Act. This legislation will modernize the 
regulation of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks 
and expands their housing mission. By creating one regulator for the 
GSEs, it will make it easier for them to respond to the housing market 
and continue to create affordable housing opportunities for Americans 
across the country.
  The bill also includes key provisions which will help homeowners and 
communities combat foreclosures. Foreclosed properties drive down the 
property value of surrounding homes, and communities are losing tax 
revenue, which will impact public services. Communities need the 
ability to take excess homes and make them livable again in order to 
recover lost revenue. The $4 billion in CDBG funding included in this 
bill will allow for States and local municipalities to rehabilitate 
foreclosed properties and then get them back onto the market for 
homeowners to purchase or to be made into affordable rental housing. 
This money is vital to the economic recovery of communities that have 
been devastated by foreclosure.
  Additionally, the bill has funding for housing counselors to help 
homeowners avoid foreclosure. Housing counselors will be able to reach 
troubled homeowners and find viable and affordable solutions in order 
to keep them in their homes. One of the most creative provisions to 
help at risk homeowners is the Hope for Homeownership Program in FHA. 
This program will allow homeowners who are behind on their mortgage 
payments to refinance into a fixed-rate FHA insured mortgage and 
ultimately stay in their homes. The quicker these provisions are signed 
into law, the quicker families and communities can respond to their 
housing needs.
  I am very pleased that the amendment which myself, Senators Collins, 
Lincoln, and Mikulski offered was agreed to and incorporated into the 
bill. There are many problems that are a result of the collapsing 
housing market, and the emergence of financial scam artists is one of 
them. The amendment will better protect homeowners from scam artists 
trying to steal the equity out of their homes.
  The passage of this housing bill is the first step to help our 
country from the collapse of the housing market. I hope that the House 
will act quickly and Congress can produce a comprehensive piece of 
legislation which the President will sign.

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