    [Weekly Compilation of Presidential Documents Volume 43, Number 36 (Monday, September 10, 2007)]
    [Pages 1163-1164]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    The President's Radio Address

    September 1, 2007

        Good morning. This week, I met with Housing Secretary Jackson and
    Treasury Secretary Paulson to discuss the economy and

    [[Page 1164]]

    the turbulence in our Nation's mortgage industry. The fundamentals of
    America's economy remain strong, but the mortgage industry is going
    through a period of adjustment. And some Americans are worried about the
    impact this is having on their ability to make their monthly mortgage
    payments.
        I have made it a priority to help American homeowners navigate these
    financial challenges so that as many families as possible can stay in
    their homes. The Federal Government will not bail out lenders because
    that would only make a recurrence of the problem more likely. And it is
    not the Government's job to bail out speculators or those who made the
    decision to buy a home they knew they could never afford. But I support
    action at the Federal level that will help more American families keep
    their homes.
        One important way to help homeowners during this time of housing
    market stress is for Congress to change a key part of the Federal Tax
    Code. Under current law, when a lender forgives part of a mortgage to
    help its customer stay afloat, that amount is treated as taxable income.
    When your home is losing value and your family is under financial
    stress, the last thing you need is to be hit with higher taxes. So I'm
    working with members of both parties to pass a bill that will protect
    homeowners from having to pay taxes on canceled mortgage debt.
        Another important step we're taking for American homeowners is to
    modernize the Federal Housing Administration. The FHA is a Government
    Agency that provides mortgage insurance to borrowers through a network
    of private sector lenders. I've sent Congress important legislation that
    would help more Americans qualify for this insurance by lowering
    downpayment requirements, increasing loan limits, and providing more
    flexibility in pricing. By passing this legislation, Congress will allow
    the FHA to reach more families in need of our assistance, and I ask
    Congress to act quickly.
        At the same time, we will launch a new FHA initiative called
    FHASecure. This initiative will help some people who have good credit
    but have recently been missing their payments. FHASecure will help these
    families refinance their mortgages so they can make their payments and
    keep their homes.
        There are other ways we can help. My administration will launch a
    new Foreclosure Avoidance Initiative to help homeowners learn more about
    their refinancing options. I've directed Secretary Paulson and Secretary
    Jackson to look into innovative ways to bring together homeowners and
    counseling groups, financial professionals, and the FHA and Government-
    sponsored enterprises like Fannie Mae and Freddie Mac to help American
    families find the mortgage product that works best for them.
        Finally, the Federal Government is working to make the mortgage
    industry more transparent and more reliable and more fair so we can
    reduce the likelihood that homeowners will face similar problems in the
    future. Federal banking regulators are strengthening lending standards
    and making mortgages easier to understand. My administration is working
    on new rules to help our consumers compare and shop for loans that meet
    their budgets and needs. We are committed to pursuing fraud and
    wrongdoing in the mortgage industry.
        Homeownership has always been part of the American Dream. During my
    administration, we've achieved record homeownership rates. We'll
    continue to work hard to keep our housing market strong, to ensure that
    American families can afford the homes they buy, and to help bring the
    dignity and security that comes with homeownership to more of our
    citizens.
        Thank you for listening.

    Note: The address was recorded at 11 a.m. on August 31 in the Cabinet
    Room at the White House for broadcast at 10:06 a.m. on September 1. The
    transcript was made available by the Office of the Press Secretary on
    August 31 but was embargoed for release until the broadcast. The Office
    of the Press Secretary also released a Spanish language transcript of
    this address.