[Congressional Record Volume 154, Number 123 (Friday, July 25, 2008)]
[Extensions of Remarks]
[Page E1556]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     AMERICAN HOUSING RESCUE AND FORECLOSURE PREVENTION ACT OF 2008

                                 ______
                                 

                           HON. BOB ETHERIDGE

                           of north carolina

                    in the house of representatives

                        Thursday, July 24, 2008

  Mr. ETHERIDGE. Mr. Speaker, I rise in support of H.R. 3221, American 
Housing Rescue and Foreclosure Prevention Act of 2008. This bill is a 
critical step towards stabilizing our housing market and providing 
assistance to thousands of Americans facing foreclosure.
  The problems that persist in our housing market are serious and 
affect millions of Americans. Thousands of families are in danger of 
losing their homes. In my state of North Carolina alone, PEW Charity 
Trusts and the Center for Responsible Lending estimate there will be 
53,254 foreclosures in 2008 and 2009. Not only does foreclosure strike 
at the heart of these families' financial stability, but the damage 
spreads across all of our communities. The same study shows that over 
330,000 homes in North Carolina will be devalued by the spillover 
impact of the foreclosures, and North Carolina stands to lose over $860 
million in property values.
  However, H.R. 3221 takes strong steps to help families facing 
foreclosure while also bolstering our housing market and economy. This 
bill also creates a voluntary FHA initiative that provides mortgage 
refinancing assistance to allow families to stay in their homes while 
also strengthening the housing market. This voluntary plan would 
require lenders to reduce some of the existing mortgage in order to 
qualify for FHA backing, and would require borrowers to return portions 
of any future profits on the house to the government in order to 
prevent foreclosure. It is important to note that under H.R. 3221, only 
owner-occupied homes facing foreclosure can qualify for this mortgage 
assistance, and speculators, investors, and second-homeowners are not 
eligible. This provision represents a compromise by all participating 
parties and can keep people in their homes and improve surrounding 
communities.
  Provisions in this bill reform and modernize the Federal Housing 
Administration (FHA) as well as government sponsored entities, GSEs, 
Fannie Mae and Freddie Mac. These changes will strengthen the FHA and 
make it a bigger force in the market to provide a better alternative to 
some of the riskier, more exotic loans that have spurred much of this 
crisis. The recent reports of major losses at Fannie Mae and Freddie 
Mac are troubling. The GSEs are crucial engines that are necessary to 
drive the slumping mortgage market that provides housing for millions 
across the country. H.R. 3221 includes a plan to give the Treasury 
Department increased authority to loan and buy credit in these GSEs. 
This backing will boost confidence in the GSEs in the marketplace, and 
may make further action unnecessary. Along with this expanded credit, 
H.R. 3221 includes a stronger and more independent regulator to oversee 
Fannie Mae and Freddie Mac and set their capital standards.
  Finally, the American Housing Rescue and Foreclosure Prevention Act 
of 2008 also includes a tax benefit of up to $7,500 for first-time 
homebuyers as well as an additional credit on property taxes for 
existing homeowners who claim the standard deduction. I am proud of the 
strong military presence in North Carolina's Second Congressional 
District, and I applaud the provisions that specifically help returning 
soldiers stay in their home and the housing counseling and benefit 
initiatives that target veterans. These measures will help revive the 
housing market and get our sluggish economy moving in the right 
direction.
  I support the passage of H.R. 3221, American Housing Rescue and 
Foreclosure Prevention Act of 2008, and I urge my colleagues to join 
me.

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