[Congressional Record Volume 154, Number 122 (Thursday, July 24, 2008)]
[Extensions of Remarks]
[Page E1549]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               HOUSING AND ECONOMIC RECOVERY ACT OF 2008

                                 ______
                                 

                               speech of

                        HON. ALLYSON Y. SCHWARTZ

                            of pennsylvania

                    in the house of representatives

                         Tuesday, July 22, 2008

  Ms. SCHWARTZ. Mr. Speaker, I want to thank Chairman Rangel and 
Chairman Frank for working with the Senate and the Administration to 
modernize the Federal Housing Administration, provide tax incentives to 
stimulate the private housing market, and to provide greater oversight 
of Fannie Mae and Freddie Mac.
   By addressing a whole range of issues--from the foreclosure crisis 
and market concerns about Fannie and Freddie to the new and existing 
homes that are sitting vacant and further depressing the market--this 
package represents a significant step toward stabilizing the economy 
and restoring consumer confidence.
   I am proud of the portion of this package that came through the 
Committee on Ways and Means, which includes a timely, targeted, and 
well-designed first-time homebuyers credit, a new Federal tax deduction 
to help families meet rising state property taxes, and an expanded 
ability of cities and states to raise capital for infrastructure 
improvements by partnering with the Federal Home Loan Banks.
   I am particularly pleased that the package includes a bill that I 
introduced, which would enable state housing finance agencies to raise 
capital through tax-exempt mortgage revenue bonds and use these 
additional funds to help at-risk borrowers to refinance their subprime 
loans, access mortgages at a fair rate, and enable them to meet their 
financial obligations and stay in their homes.
   Specifically, this legislative language allows state housing finance 
agencies to--for the first time--use funding raised by mortgage bonds 
to refinance qualified subprime mortgages. It also increases the 
current cap on these bonds by $11 billion to ensure that the housing 
finance agencies have sufficient capital to fully take advantage of 
this new abilty to help at-risk borrowers in their states.
   This provision will work hand in hand with the Federal Housing 
Administration reforms that have come out of Chairman Frank's 
Committee--and it will allow states to play a role in addressing the 
needs of their local communities.
   It is in everybody's interest that we overcome this crisis in the 
housing market, prevent a deepening of current economic troubles, and 
maintain our competitive edge in the global economy.
   The proposal before us takes a comprehensive, reasonable and 
balanced approach to this challenge--and it is one that deserves 
bipartisan support.

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