[Public Papers of the Presidents of the United States: George W. Bush (2003, Book II)]
[December 16, 2003]
[Pages 1733-1735]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks on Signing the American Dream Downpayment Act
December 16, 2003

    Thank you all. Thank you for coming. Thanks for the warm welcome. 
It's great to be back at the Department of Housing and Urban 
Development. This is not my first time here, nor will it be my last.
    I am here today because we are taking action to bring many thousands 
of Americans closer to owning a home. Our Government is supporting 
homeownership because it is good for America; it is good for our 
families; it is good for our economy. One of the biggest hurdles to 
homeownership is getting money for a downpayment. This administration 
has recognized that, and so today I'm honored to be here to sign a law 
that will help many low-income buyers to overcome that hurdle and to 
achieve an important part of the American Dream.
    I appreciate Alphonso Jackson 
agreeing to step up and become the Acting Secretary of the Housing and 
Urban Development. I look forward to his Senate confirmation, a hasty 
confirmation.
    I also want to thank Mel Martinez for 
doing such a fine job as the Secretary of this important organization. 
Mel brought integrity and honor to the office. He did a fine job on 
behalf of all Americans. And we honor you, Mel.
     I want to thank all the hard-working officers and employees of HUD. 
I appreciate your focus and your dedication, your willingness to work on 
behalf of a better America.
     I thank very much Members of the Congress who have taken time to 
come and join us for this important bill signing. Senator Wayne 
Allard from Colorado is with us. Senator 
Allard, thank you for your work on the floor of the Senate. Chairman of 
the Financial Services Committee Mike Oxley 
is with us. Congressman, thank you for coming. Congressman Jim 
Leach from Iowa is with us today. 
Congressman, thank you for being here. Congresswoman Katherine 
Harris, who had a lot to do with this bill 
getting passed, is here with us. Katherine, thank you for coming. 
Delegate Madeleine Bordallo of Guam is 
with us today. I'm honored you are here. Thank you for coming, 
Madeleine. I appreciate you coming.
    I too want to pay homage to a man I call Little Woody; that would be 
Rob

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Woodson. He worked hard in the 
development of this policy. I think it is safe to say that he was the--
he developed the concept for this policy, a concept embraced by my 
administration. I'm appreciative that Michelle is here. I also want to thank Dad for coming, Bob 
Woodson, who is a social entrepreneur, a 
person who cares deeply about every American having the right and a 
chance to own a home. Thank the Woodson family. God bless you all.
    I want to thank the representatives of consumer and housing groups 
that worked hard on this piece of legislation. I want to thank leaders 
of the national community organizations that are with us, members of the 
real estate industry.
    This administration will constantly strive to promote an ownership 
society in America. We want more people owning their own home. It is in 
our national interest that more people own their own home. After all, if 
you own your own home, you have a vital stake in the future of our 
country.
    And this is a good time for the American homeowner. Today we 
received a report that showed that new home construction last month 
reached its highest level in nearly 20 years. The reason that is so is 
because there is renewed confidence in our economy. Low interest rates 
help. They have made owning a home more affordable for those who 
refinance and for those who buy a home for the first time. Rising home 
values have added more than $2\1/2\ trillion to the assets of the 
American families since the start of 2001.
    The rate of homeownership in America now stands at a record high of 
68.4 percent. Yet there is room for improvement. The rate of 
homeownership amongst minorities is below 50 percent. And that's not 
right, and this country needs to do something about it. We need to close 
the minority homeownership gap in America so more citizens get the 
satisfaction and mobility that comes from owning your own home, from 
owning a piece of the future of America.
    Last year I set a goal to add 5.5 million new minority homeowners in 
America by the end of the decade. That is an attainable goal; that is an 
essential goal. And we're making progress toward that goal. In the past 
18 months, more than 1 million minority families have become homeowners. 
And there's more that we can do to achieve the goal.
    The law I sign today will help us build on this progress in a very 
practical way. Many people are able to afford a monthly mortgage payment 
but are unable to make the downpayment, and so this legislation will 
authorize $200 million per year in downpayment assistance to at least 
40,000 low-income families. These funds will help American families 
achieve their goals and, at the same time, strengthen our communities.
    And there's more to do as well. We'll continue to pursue a broad 
agenda to help people own a home. There are three steps I want to 
describe to you right quickly about what we intend to do.
    First, those who apply for mortgages should be made aware of all the 
costs and warned about predatory lenders who take advantage of 
inexperienced buyers. So we've doubled the funds for housing counseling 
services, including those run by faith-based and community groups. We 
understand that buying a home for the first time is complicated, and we 
want to simplify the process. We want to help people understand the pros 
and cons of buying a home. We want people to be fully aware of what it 
means to buy a home and what it takes. And we want people as best 
protected as possible from those shysters who would take advantage of 
first-time buyers.
    Second, we need to make the homebuying process more affordable. Some 
of the biggest upfront costs in a home purchase are the closing costs. 
Sometimes they catch you by surprise. [Laughter] Many homebuyers do not 
have the time to shop

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around looking for a better deal on closing costs. You're kind of stuck 
with what you're presented with. And so they end up paying more than 
they should. So we've proposed new rules to make it easier for buyers to 
shop around and to compare prices on closing costs, so they can get the 
best deal and the best service possible.
    And thirdly, we want to make buying a home simpler. Many first-time 
buyers look at the paperwork from a loan application and, frankly, get a 
little nervous about all the fine print. Those forms can be intimidating 
to the first-time homebuyer. They can be intimidating to the second- or 
third-time homebuyer too. [Laughter] So this administration has proposed 
new rules to simplify the forms homebuyers and homeowners fill out when 
they apply for a loan or close on a mortgage.
    We understand that buying a home is a big step, and so these three 
recommendations we're making, these three changes in the rules, will 
make that step easier, will enable people to make the step to buying a 
home--they'll be able to do so with more confidence. These are practical 
ways that we are working to expand homeownership across the country.
    The dream of homeownership should be attainable for every hard-
working American. That's what we want. And this act of Congress I'm 
going to sign, the regulations that I hope are finalized soon will help 
thousands of families fulfill the dream.
    And so now it is my honor, right here at this important Department, 
the Department responsible for encouraging homeownership in America, to 
sign the American Dream Downpayment Act.

Note: The President spoke at 1:57 p.m. at the Department of Housing and 
Urban Development. In his remarks, he referred to the late Robert 
Woodson, Jr., former Chief of Staff, Department of Housing and Urban 
Development, and his widow, Michelle; and Robert Woodson, Sr., founder 
and president, National Center for Neighborhood Enterprise. S. 811, 
approved December 16, was assigned Public Law No. 108-186. The Office of 
the Press Secretary also released a Spanish language transcript of these 
remarks.