"This bill will strengthen our economy and build strong communities and families. For many families, it is the American Dream to own your own home, and this bill will allow more of our upstate families in New York to achieve this goal."  Congresswoman Gillibrand continued, "Right now, the Federal Housing Administration is not meeting the needs of homebuyers, and this bill will improve the FHA so that borrowers will not turn to the problematic subprime mortgage market for loans."

To help homeowners who are stuck with a perilous Subprime mortgages, HR 1852 will allow some of these homeowners to refinance their loans in order acquire better rates and terms.  Up to 2 million American families may default on their current, subprime mortgage loan because of the significant increases in mortgage payments that occur under adjustable-rate mortgages. 

Some of the reforms in the Expanding American Homeownership Act of 2007 include:
Allowing the FHA to offer zero and low-down payment loans to help low-income families that want to purchase a home, but do not have the necessary money available that is needed for an average down payment
Increase the amounts on FHA loans, so that more families in higher income areas- like New York- can take advantage of these sound, federally-backed mortgages
Doubles funding for housing counseling for first time homebuyers
Directs the Department of Housing and Urban Development (HUD) to offer refinanced loans to borrowers that have a subprime mortgage and are at risk of defaulting on their loan 
Establishes a fund for the construction of affordable housing