September 17, 2007
“I want to thank Chairman Frank and Chairwoman Waters for their leadership and commitment to revitalize the FHA and provide critical assistance to those who have been affected by the current mortgage crisis.
“Madam Speaker, this is a crisis that could have been avoided and as we are seeing, it is reverberating not only across our country but across the world.
“Many hardworking Americans were lured into a fantasy universe where predatory mortgages were offered at low rates and even lower payments by unscrupulous lenders. Now, reality has kicked in. And those most affected are the elderly, single parents and minorities.
“This bill is an important first step toward helping Americans who have been caught up in this nightmare. For instance, current FHA rules prevent the FHA from making loans beyond the local median home price. This bill will increase loan limits to make FHA relevant in these areas. This is a crucial fix which will provide assistance in high price markets like mine in the 9th congressional district of California.
“This bill also addresses other important issues dealing with home ownership. For example: coming up with a sufficient down payment to qualify for a loan. With a good job and a good credit, this requirement should be easily met but isn’t always the case. This bill addresses this point by authorizing a zero or lower down payment on loans for borrowers that can afford mortgage payments.
“Finally, by providing increased funding for housing counseling, this bill helps to ensure that those who achieve the American dream of owning a home can keep it.
“Madam Speaker this is an important bill for an entire generation of new homeowners. I urge my colleagues to support it.”
Barbara Lee Speaks Out for Homeownership Promotion, Borrower Protection Bill
(Washington, DC) – Congresswoman Barbara Lee (D-Oakland) spoke out in favor of legislation designed promote homeownership, protect borrowers and help those impacted by the sub-prime mortgage crisis during debate today on the House floor. The Expanding American Homeownership Act of 2007 passed by a vote of 348-72. The following is her statement (as prepared):“I want to thank Chairman Frank and Chairwoman Waters for their leadership and commitment to revitalize the FHA and provide critical assistance to those who have been affected by the current mortgage crisis.
“Madam Speaker, this is a crisis that could have been avoided and as we are seeing, it is reverberating not only across our country but across the world.
“Many hardworking Americans were lured into a fantasy universe where predatory mortgages were offered at low rates and even lower payments by unscrupulous lenders. Now, reality has kicked in. And those most affected are the elderly, single parents and minorities.
“This bill is an important first step toward helping Americans who have been caught up in this nightmare. For instance, current FHA rules prevent the FHA from making loans beyond the local median home price. This bill will increase loan limits to make FHA relevant in these areas. This is a crucial fix which will provide assistance in high price markets like mine in the 9th congressional district of California.
“This bill also addresses other important issues dealing with home ownership. For example: coming up with a sufficient down payment to qualify for a loan. With a good job and a good credit, this requirement should be easily met but isn’t always the case. This bill addresses this point by authorizing a zero or lower down payment on loans for borrowers that can afford mortgage payments.
“Finally, by providing increased funding for housing counseling, this bill helps to ensure that those who achieve the American dream of owning a home can keep it.
“Madam Speaker this is an important bill for an entire generation of new homeowners. I urge my colleagues to support it.”
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