[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.