WASHINGTON – Noting serious concerns he has with the American Housing Rescue and Foreclosure Prevention Act of 2008, Congressman Adam Putnam (R-Fla.) said he voted in support of the measure due to the emergency market liquidity measures outlined by Federal Reserve Chairman Bernanke and Treasury Secretary Paulson last week.

“If small businesses are unable to borrow, that’s fewer jobs for Floridians.  If financial institutions constrict lending, housing prices could fall further and businesses will fail due to lack of available financing,” said Putnam.  “There are important provisions in this legislation that will increase market confidence in the housing government-sponsored enterprises (GSEs) and aid the stability of the financial system.”

The legislation will stabilize Fannie Mae and Freddie Mac, greatly aiding the stability of the financial system by providing continued access to liquidity and capital.  In addition, the legislation creates a long overdue new world-class regulatory system for the GSEs, modernizes the Federal Housing Administration (FHA), and provides first-time home buyers with a refundable tax credit equal to 10 percent of the purchase price of their home (up to $7,500), phased-down for taxpayers with adjusted gross incomes above $75,000 ($150,000 for married couples) and is only applicable to a principal residence purchased on or after April 9, 2008, and before July 1, 2009.

“Banking, housing and liquidity are in precarious shape,” said Putnam.  “Millions of hard-working Americans need Congress to act now to prevent bank failures, insolvencies and further collapse of the housing market which disproportionally affects Florida.  I believe this bill will do that.”
 
“Unfortunately, the progress this bill makes comes at a high cost:  Some policies will bail out investors and speculators who made bad decisions. Taxpayers should not be on the hook for people who made risky investments.  This bill also turns state and local governments into landlords, charged with buying and rehabbing foreclosed property – a task government is not suited to perform. And, it increases the amount of money the federal government can borrow by $800 billion. This will take the debt limit to a new record high of $10.615 trillion.”

“In this case, the stakes are too high for our economy to let the perfect be the enemy of the good.  I look forward to working with both parties to strengthen the U.S. economy and credit market.”

Since 2001, Putnam has represented Florida’s 12th Congressional District, which includes most of Polk County and portions of Hillsborough and Osceola counties.  As chairman of the Republican Conference, he is the third ranking member of his party’s leadership in the House of Representatives.

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