Bill Will Deal With Housing Crisis (Rep. John Dingell)
July 22nd, 2008
This week, the House is once again prepared to consider legislation that will address many of the causes behind the recent crisis in America’s housing and mortgage markets. Many Americans, particularly many in my home state of Michigan, feel nervous about their homes with the daily news of mortgage companies, brokerages and banks in crisis. House Financial Services Chairman Barney Frank has done a terrific job crafting a bill that will deal with the current crisis situation, increase regulatory oversight of the lending practices that created this mess and increase the amount of affordable housing in our country.
The reforms to the Federal Housing Authority (FHA) are long overdue and much needed. Now if Chairman Frank had his way, these problems would have been addressed years ago, but Democrats were in the Minority and we should give him credit for taking the steps we need now. This bill will enable the FHA to assist homeowners facing foreclosure by refinancing them into sustainable loans. It reminds me of one of FDR’s great inventions - the Homeowners’ Loan Corporation - which saved the homes of countless American families during the Great Depression. This is exactly the kind of smart leadership and inventive thinking that Americans were looking for when they voted to give Democrats control of the 110th Congress.
This bill will provide significant financial resources for the creation of much needed affordable housing, as there are many working families who lack for a decent place to live. The Bush Administration’s single minded focus on home ownership for low income buyers came at the expense of investments in clean, safe, and respectable affordable housing. It is time to invest in housing for lower income families.
Michigan has been particularly hard hit by the foreclosure crisis. According to a new report by the Pew Charitable Trusts, one in 36 Michigan homeowners is likely to end up in foreclosure as a result of subprime loans made in 2005 and 2006. We can not afford to wait much longer. It is time to pass this bill.
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