[Congressional Record Volume 157, Number 196 (Monday, December 19, 2011)]
[Extensions of Remarks]
[Page E2314]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         INTRODUCING THE AFFORDABLE MORTGAGE FOR HOMEOWNERS ACT

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                         HON. ALCEE L. HASTINGS

                               of florida

                    in the house of representatives

                       Monday, December 19, 2011

  Mr. HASTINGS of Florida. Mr. Speaker, I rise today to introduce the 
Affordable Mortgage for Homeowners Act. This bill would reduce the 
interest rate on all mortgages owned or guaranteed by Fannie Mae or 
Freddie Mac to the current--and more affordable--interest rate, which 
averages four percent.
  As our nation is recovering from the worst recession and housing 
crisis in decades, millions of homeowners continue to struggle to make 
their mortgage payments and keep their homes. Approximately 22 percent 
or 10.7 million of homeowners owe more on their mortgages than their 
homes are worth. In 2011, two million households received a foreclosure 
filing. Furthermore, the total mortgage debt overhang in the Unites 
States approaches $700 billion dollars. The state of Florida is by far 
one of the hardest hit regions in the country.
  During the height of the subprime mortgage crisis in 2008, many 
recognized that it was the predatory lending practices of mortgage 
lenders that pushed millions of homeowners to purchase homes they could 
not afford. Today, millions of responsible homeowners have underwater 
mortgages, because of these unscrupulous lending practices and 
declining home values. I refuse to let American families struggle 
through no fault of their own.
  While the U.S. government has established programs to help homeowners 
who are both current and in default on their mortgages, it has not been 
enough. Indeed, many households did not qualify for these programs or 
were not aware of their existence. My bill will fix this problem by 
requiring Fannie Mae and Freddie Mac to reduce the interest rate on all 
the mortgages they own to the current interest rate, which averages 
four percent. Homeowners who have a better mortgage product or want to 
opt out will be exempted. My bill is the first program that will 
directly help millions of homeowners and address the housing crisis 
comprehensively.
  Mr. Speaker, homeownership is a central part of the American dream. 
Ensuring that people are able to maintain this critical investment is 
essential to achieving sustainable growth and economic development in 
our communities. Millions of responsible Americans continue to bear the 
cost of this economic crisis. I find this to be unacceptable. They 
deserve fair and affordable mortgages that allow them to plan for the 
future. This is why I urge my colleagues to take a major step towards 
ending the housing crisis and support this important legislation.

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