Economy and Housing

The American economy is now beginning to come back from the worst economic downturn since the Great Depression, and Hoosiers have been hit hard. It is going to take time for our economy to fully recover, and there will be more difficult days to come. But I am confident that if managed appropriately, we will emerge from this crisis even stronger.

As a member of the House Committee on Financial Services, I have worked to respond to the economic crisis and prevent a complete collapse of our financial system that would have taken with it the ability of Hoosier businesses to operate and consumers to get lending to finance home and car purchases.

Small businesses are the engine of our economy and represent over 97 percent of firms across Indiana. One of the biggest challenges facing our small businesses is the lack of available credit. I have worked with the Small Business Administration (SBA), asking that they look at ways to help vital industries in our state like the recreational vehicle and manufactured housing industries get back on their feet.

In May, the SBA announced that it would provide an alternative size standard of up to $8.5 million of net worth for 7(a) loans increasing the number of small businesses eligible for these loans. Prior to the change, businesses had to rely on limitations based on sales or number of employees. In addition, starting July 1, 2009, the SBA will begin offering floor plan financing, which is critical to dealers of cars, boats, RVs and manufactured homes. The greater availability of floorplan financing will generate economic activity that will benefit dealers, manufacturers, suppliers, consumers and workers.

I am proud to serve on the Financial Services Committee’s Housing Subcommittee, which focuses on the importance of homeownership and providing affordable housing. Currently, millions of American families are struggling to make their mortgage payments, and many are facing or are already in foreclosure. I have worked with my colleagues to provide assistance to people in danger of losing their homes.

Recently, legislation was enacted to reform the Federal Housing Administration (FHA) program to allow more homeowners to refinance their mortgages with FHA guarantees so they can avoid foreclosure. I also introduced legislation with one of my colleagues that would allow financial institutions to rent a foreclosed home to the previous owner for up to five years. This is intended to give families a chance to remain in their homes until they have the means to own again.

I am working with the House Financial Services Committee to put in place a plan to reform our financial regulatory system. I intend to make sure that the kind of reckless behavior and poor oversight that caused the current crisis never happens again. It is my mission to make sure that these reforms benefit consumers. Along these same lines, I have worked to crack down on predatory practices of credit card companies. It is time that the days of companies arbitrarily raising interest rates to astronomical levels come to an end.

Coming out of this mess will take time and it will not be easy. I will approach my duties on the House Financial Services Committee with this overarching goal in mind: making sure that the American Dream remains within reach of every hard-working Hoosier.