Press Releases
July 26, 2008
Webb Supports Comprehensive Housing Rescue Legislation, Calls For Cap On Executive Compensation
Washington, DC- The Senate today passed a comprehensive bipartisan housing bill supported by Senator Jim Webb (D-VA) designed to restore housing market confidence, help homeowners across Virginia deal with the ongoing housing crisis, and provide temporary authority to the Federal Government to help Freddie Mac and Fannie Mae.
“The Housing and Economic Recovery Act of 2008” passed the House of Representatives on Wednesday, July 23, and the President is expected to sign it into law next week.
“While far from perfect, this bill will assist thousands of Virginians who are struggling to keep their homes, while helping to restore stability to the nation’s housing market,” said Senator Webb.
The legislation notably includes a provision advocated by Senator Webb, which gives federal regulators the authority to limit excessive compensation packages of Fannie Mae or Freddie Mac executives.
“The bottom line is that if American taxpayer money is required to help correct the business decisions of Fannie Mae, Freddie Mac, or for that matter any of our banks, our nation’s workers shouldn’t have their taxes used to continue the record-high benefits of the executives who run these institutions,” said Webb. “Instead, those executives should be required to give up some of their huge compensation packages.
“Congress is taking appropriate, decisive action to help stabilize Freddie Mac and Fannie Mae, which control half of the mortgages in the United States. But, we should challenge the notion that it is acceptable for profits to be privatized and losses to be socialized,” continued Webb.
As of June 30th, home foreclosures in Virginia already surpassed the total for 2007, with 20,771 so far this year. According to a study released by RealtyTrac on Thursday, Virginia ranks 11th in the country for home foreclosures.
With increased foreclosures, many communities are seeing decreased home prices and declining property taxes. A recent Joint Economic Committee analysis estimates that Virginia home prices will fall 13.5 percent between 2007 and 2009 resulting in a net loss of $135 billion in housing wealth. It is also estimated that Virginia will suffer losses of approximately $2.32 billion in mortgage-related foreclosure costs over the next year and a half.
For a break-down of provisions included in “The Housing and Economic Recovery Act of 2008,” visit: http://banking.senate.gov/public/_files/UpdateHousingandEconomicRecoveryActSummary3.pdf
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