Washington, D.C. – U.S. Rep. Bob Etheridge (D-Lillington) today voted for legislation that would provide the strongest response yet to the nation’s housing crisis and help to stabilize the economy.
The House passed The American Housing Rescue and Foreclosure Prevention Act by a vote of 223 – 201.
“This bill is a critical step towards stabilizing our housing market, and providing assistance to thousands of Americans facing foreclosure. There are grave problems facing our current housing market and economy. Decreasing home values and lack of available credit are damaging the market, and skyrocketing mortgages have led thousands of families to face the frightening prospect of foreclosure.”
H.R. 3221 will help hard-working families be able to stay in their homes, aid local communities hit hard by the foreclosure crisis and strengthen the economy and financial markets. It will also take steps to ensure that a similar crisis will not occur again in the future.
The number of homeowners filing for foreclosure grew by more than 50 percent in June compared to one year ago. In North Carolina, PEW Charity Trusts and the Center for Responsible Lending estimate there will be 53,254 foreclosures in 2008 and 2009. The same study shows that more than 330,000 homes in North Carolina will be devalued by the spillover impact of the foreclosures, and North Carolina stands to lose more than $860 million in property values.
The bill will allow significant numbers of homeowners facing foreclosure to refinance into lower-cost government-insured loans they can afford to repay, at no cost to taxpayers. It will also provide resources to cities and states to allow them to buy and rehabilitate foreclosed properties. Foreclosures are having a ripple effect throughout local communities, driving down home prices, reducing state and local revenues and destabilizing neighborhoods.
The legislation passed today also includes provisions that will help restore confidence in financial markets and shore up Fannie Mae and Freddie Mac, institutions that hold or guarantee nearly half of all
mortgages in the United States. The bill will provide for a new independent regulator for Fannie Mae and Freddie Mac that can set their capital standards and ensure their soundness in the mortgage market.
Additionally, the bill expands homeownership opportunities for veterans and helps returning soldiers avoid foreclosure and stay in their home.
The Senate is expected to pass the bill and the President has said he will sign it into law.