[Congressional Record Volume 154, Number 123 (Friday, July 25, 2008)]
[Extensions of Remarks]
[Page E1564]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               HOUSING AND ECONOMIC RECOVERY ACT OF 2008

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                        Wednesday, July 23, 2008

  Ms. McCOLLUM of Minnesota. Mr. Speaker, I rise today in strong 
support of the American Housing Rescue and Foreclosure Prevention Act, 
H.R. 3221, and to congratulate Chairman Frank and Speaker Pelosi for 
their quick action to help American families.
  The dream of homeownership has become a nightmare for too many people 
in our country. 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 visiting the east side neighborhoods 
in St. Paul who are hit hardest by this crisis. Foreclosures result in 
lost tax revenue for local governments, reduced property values for 
neighbors, and can often contribute to criminal activity.
  Congress must act to protect families and neighborhoods from a 
further expansion of this crisis, which is why I strongly support H.R. 
3221. This legislation is a comprehensive response that will 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.
  Specifically, H.R. 3221 expands a Federal Housing Administration 
program to allow borrowers in danger of losing their home to refinance 
into lower-cost Government-insured mortgages they can afford to repay. 
This voluntary program is not a bailout. Mortgage investors must take 
significant losses by reducing the loan principal, borrowers must share 
any profit from the resale of the home, and only primary residences are 
eligible. In addition, this bill provides $4 billion in emergency 
assistance, CDBG Funds, to communities hit hardest by the foreclosure 
and sub prime crisis to purchase, rent, or rehabilitate vacant 
foreclosed homes with the goal of occupying them as soon as possible
  This bill provides new tax incentives to increase home buying, which 
will not only help families build wealth, but could also create jobs in 
our communities. For those who cannot buy a home, H.R. 3221 creates a 
new Housing Trust Fund to increase the Nation's stock of affordable 
rental housing at no cost to the taxpayer. The legislation protects 
veterans and returning soldiers from foreclosure by increasing the VA 
loan limit, lengthening the time a lender must wait before starting 
foreclosure when a soldier returns, and increasing benefits to adapt 
the homes of veterans with service-related disabilities.
  H.R. 3221 also responds to the financial crisis facing Government 
Sponsored Enterprises or GSEs by giving the Secretary of the Treasury 
the authority to buy stock in those companies to restore confidence in 
the financial and housing market and ensure the safe and sound 
operation of these enterprises. These GSEs are central to the housing 
market and the economy as a whole, as they are the largest sources of 
mortgage finance in the United States--buying more than two-thirds of 
new mortgages in the first three months of 2008. While recognizing this 
necessity, this legislation will also protect taxpayers by requiring 
that taxpayers are paid back before shareholders, adding restrictions 
on executive compensation, and strengthening oversight by putting an 
independent new regulator in charge. These measures will help safeguard 
the interests of the American taxpayer and ensure the availability of 
affordable home loans, while also strengthening the regulation of 
Fannie Mae and Freddie Mac and raising the GSE loan limit.
  Our priority as a community must be to get the economy moving, 
provide opportunities to succeed, and to restore the United States as a 
global leader. H.R. 3221 is a comprehensive response and will make a 
real difference for families and communities. And ending the 
foreclosure crisis--ensuring that families have access to safe and 
stable housing--is vital to the recovery of the American economy.
  We need this legislation to get this country back on the right track. 
I urge my colleagues to support this legislation and move our housing 
policy in a new direction.

                          ____________________