Lawyers, Lenders and La Raza
Washington,
May 6 -
Last month, my fellow House Republicans and I unveiled a series of housing principles to guide future legislation that supports homeownership, protects taxpayers, helps victims and lowers taxes on American families. And today, we announced those proposals. Our legislation will address the unstable housing market in a reasonable and responsible way without bailing out scam-artists and speculators.
The two pieces of legislation authored by Congressmen Spencer Bachus (R-Ala.) and Lee Terry (R-Neb.) respectively follow the basic principles of fairness and responsibility, while encouraging homeownership.
The two Republican bills together represent a viable alternative, offering an appropriate response to a serious problem without hanging taxpayers out to dry while taking care of lawyers, lenders and La Raza.
Terry’s legislation – which will be introduced today – offers market-based incentives rather than a taxpayer-funded bailout. The bill would help stabilize house prices, reduce housing inventory, and provide incentives to buyers by offering a tax credit for homebuyers for 10% of the home’s purchase price – up to $10,000. Homes purchased within a year of the bill’s enactment are eligible for the credit, but it would not apply to taxpayers who are non-resident aliens, flip a home within the one year period, or sell a house to a relative simply for the credit.
Bachus’s Homeownership Protection and Housing Market Stabilization Act of 2008 (H.R. 5857), which was introduced April 22nd, would protect consumers from disreputable mortgage practices and modernize FHA. His bill would also help veterans by temporarily raising loan limits for VA housing loans, and doubling foreclosure protections for returning veterans.
While Republicans acted responsibly, consistent with the needs and interests of the vast majority of American homeowners, Democrats were busy crafting legislation driven by headlines and political perceptions – rewarding irresponsibility, creating a $35 million trial lawyer slush fund and earmarking $15 million to a subgroup of LaRaza for housing counseling.
