Lowey Backs Comprehensive Plan to Help Homeowners

WASHINGTON – Congresswoman Nita Lowey today backed a comprehensive plan to help homeowners struggling from the ongoing mortgage crisis, help others to avoid foreclosures in the future, and boost the economic recovery of communities harmed by increased foreclosures.

“Families across the nation have been devastated by foreclosures, and our entire economy has suffered from the ripple effect of the ongoing housing crisis,” said Lowey. “Today Congress has responded by approving a comprehensive plan to help homeowners, strengthen regulation, and shore up the housing market. I am pleased that President Bush today reversed course and committed to supporting this important bill.”

The American Housing Rescue and Foreclosure Prevention Act will allow American families in danger of losing their home to refinance into lower-cost government-insured mortgages they can afford to repay at no cost to the American taxpayer. The legislation also:

· Provides resources to allow hard-hit cities and states to purchase and rehabilitate foreclosed properties that are currently driving down home prices, reducing state and local revenues, and destabilizing neighborhoods;

· Expands homeownership opportunities for veterans and helps returning soldiers avoid foreclosure;

· Provides tax breaks to spur home buying; and

· Creates a new fund to boost the nation’s stock of affordable rental housing in both rural and urban areas for low and very low-income individuals and families.

The legislation passed today also includes provisions that will help restore confidence in financial markets and shore up Fannie Mae and Freddie Mac. The bill provides the Department of the Treasury with emergency and temporary financing authority for Fannie Mae and Freddie Mac, which hold or guarantee nearly half of all mortgages in the United States.

The legislation passed the House of Representatives today by a vote of 272 to 152, and President Bush has indicated that he will sign the bill into law.

“This bill is a critical bipartisan response to one of the fundamental challenges to our economy,” said Lowey. “I am pleased that Congress and President Bush have come together in a bipartisan way to help struggling homeowners and promote recovery within the housing market and in our overall economy.