Though the current recession began in August 2007, the roots of this economic crisis go back to the early 2000s when credit standards in the domestic mortgage lending were relaxed. The bursting of the U.S. housing market bubble and the increase in number of foreclosures has ballooned into a global financial and economic crisis. Some of the largest and most venerable banks, investment houses, and insurance companies have either declared bankruptcy or sought financial rescue.

To address the continuing home foreclosures, I supported and Congress passed the Helping Families Save Their Homes Act of 2009, which President Obama signed into law on May 20, 2009. I voted in favor of this law because it is designed to help homeowners who have played by the rules but nonetheless are falling victim to the deepening recession. In addition, on February 18, 2009, President Obama announced the Making Home Affordable program, which aims to modify the loans of borrowers who are in danger of default or foreclosure. Unfortunately, the ongoing home foreclosures mean that many families are losing their homes and their neighbors are facing declining property values.

In May, 2009 new home starts jumped for the third month in a row. This is a good sign that the housing market is beginning to stabilize. However, Congress has much work ahead of it to ensure that risky lending, un-regulated financial products, and irresponsible practices do not cause a similar crisis in the future. As a member of the Committee on Financial Services’ Subcommittee on Housing, I believe that restoring confidence in the housing market and encouraging investment is a top priority for our economic recovery

I will continue to work with other members of the Committee and the President to develop responsible reform legislation that can restore America’s financial stability and economic prosperity.