[Congressional Record Volume 154, Number 128 (Wednesday, July 30, 2008)]
[Extensions of Remarks]
[Page E1606]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               HOUSING AND ECONOMIC RECOVERY ACT OF 2008

                                 ______
                                 

                               speech of

                       HON. LUCILLE ROYBAL-ALLARD

                             of california

                    in the house of representatives

                        Wednesday, July 23, 2008

  Ms. Roybal-Allard. Mr. Speaker, I rise in support of H.R. 3221, the 
American Housing Rescue and Foreclosure Prevention Act of 2008. I thank 
Chairman Frank and Chairwoman Waters for bringing this important 
legislation to the House floor today.
  I am certain that all of my colleagues have heard from constituents 
about the devastating effect the foreclosure crisis has had on their 
families and communities. The problem is particularly acute in my home 
state of California, which has the second-highest foreclosure rate in 
the Nation. Recent data has shown that the problem is getting worse. In 
the last three months, foreclosures in California have jumped 33.5 
percent from the previous period.
  To help my constituents confront this crisis, I recently held a 
foreclosure prevention workshop in my district. The turnout was 
enormous--nearly 500 members of our community attended the workshop, 
where national banks, HUD, and other intermediaries provided one-on-one 
housing counseling, and information on viable options for preventing 
foreclosure.
  We know that the overwhelming turnout at the event was not an 
anomaly--I have heard from many of my colleagues that they too have 
experienced record turnouts at events they have hosted to help their 
own constituents.
  At the workshop I heard from numerous participants who were concerned 
that Congress was not doing enough to address the crisis.
  I am gratified that today we can go back to our constituents and 
assure them that Congress has taken action to help address this crisis 
by passing the American Housing Rescue and Foreclosure Prevention Act. 
H.R. 3221 represents a solid step forward in our efforts to confront 
the mortgage crisis.
  The measure will expand the FHA program so that many homeowners at 
risk of facing foreclosure can refinance into viable mortgages that are 
government-insured. This will help many families facing ballooning 
mortgage payments to get their finances back on track and keep their 
homes.
  I am particularly pleased that this legislation will increase the 
conforming loan limit for Fannie Mae and Freddie Mac backed loans to 
$625,000 in high-cost areas such as California. The current limit is 
far too low to make a meaningful impact in the Los Angeles area, where 
the average cost of a home is far above the national average.
  The $4 billion in Community Development Block Grant funds made 
available to states and localities to purchase foreclosed properties is 
also a critical component of the package. Vacant, foreclosed properties 
exacerbate the crisis by lowering the values of surrounding homes and 
neighborhoods.
  I urge my colleagues to vote in support of this legislation to help 
families keep their homes and protect their communities.

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