[Congressional Record (Bound Edition), Volume 147 (2001), Part 15]
[Extensions of Remarks]
[Page 21560]
[From the U.S. Government Publishing Office, www.gpo.gov]



 H.R. 3206, THE HOME OWNERSHIP EXPANSION AND OPPORTUNITIES ACT OF 2001

                                 ______
                                 

                           HON. MARGE ROUKEMA

                             of new jersey

                    in the house of representatives

                       Thursday, November 1, 2001

  Mrs. ROUKEMA. Mr. Speaker, today, I introduced H.R. 3206--The Home 
Ownership Expansion and Opportunities Act of 2001. It is my intent, by 
introduction of this bill, to create a healthy and vibrant debate about 
the future home ownership opportunities for our citizens pursuing the 
American dream. While the home ownership rate is at its highest level 
ever--nearly 68 percent, there are pockets in our community who hover 
around the 40th percentile, because of geography, income or other 
factors. These unconquered pockets are the last frontier to be explored 
through what I believe could be public and private home ownership 
partnership initiatives.
  H.R. 3206 is just one example of perhaps how Congress can explore new 
ways of thinking. It goes without saying that new sets of challenges 
require new ideas and different solutions.
  H.R. 3206 would provide authority to the Government National Mortgage 
Association (GNMA) to guarantee securities of certain conventional 
mortgages above an 85 percent loan-to-value ratio, up to the 
conventional mortgage loan limits already established by existing law. 
This guarantee is conditioned on these hybrid mortgages meeting certain 
guidelines established by GNMA and insured both by private sector 
mortgage insurance and the Federal Housing Administration (FHA). These 
mortgages would meet rigorous underwriting and insurance guidelines to 
ensure that no undue and unresponsible risk is placed on the Federal 
government.
  I also note that Senator Wayne Allard of Colorado and Ranking Member 
of the Senate Subcommittee on Housing and Transportation will introduce 
a companion bill in that chamber today as well. While the concept in 
both bills is similar, differences exist.
  This concept is unique and has not been tested before. If we as a 
legislative body believe, however, that we must further public policy 
to advance increased home ownership opportunities, than we must also 
agree to certain paradigm shifts, whether it is this idea or another 
put forth.
  There is no question that this country has the best home ownership 
system in the world, having created a secondary market to provide 
needed capital to meet both consumer/buyer demands and finance costs. 
Moreover, FHA, designed to meet the needs of those creditworthy home 
owners locked out of the conventional markets, is a great supplement to 
the private mortgage finance system.
  However, we can do better. This bill is not intended to carve out 
winners and losers, but to spark a debate on the future of our mortgage 
finance system and how we can penetrate those markets that, up until 
now, have not been impacted, even with the best home ownership 
initiatives we have. Out of this debate, I am confident that new ideas 
will percolate and move all of our citizens onward and upward toward 
the American dream.

                          ____________________