Washington, DC – Today, Congressman Al Green (TX-09), a member of the House Financial Services Committee, voted to pass H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act. This comprehensive response to the current mortgage crisis includes measures aimed at helping families stay in their homes and stabilizing our nation’s housing market. According to the Pew Charitable Trusts, between 7,000 and 8,000 people per day are filing for foreclosure across the country and approximately 1 in 35 Texas homeowners will likely experience foreclosure, primarily in the next 2 years.
“We must not forget that foreclosures negatively impact our nation on every level,” Rep. Green stated. “They cause families to lose their homes, tenants to have to relocate and cities to lose valuable tax revenue, making it harder to provide good schools, police protection, code enforcement and other vital services. By taking steps to help homeowners avoid foreclosure, we are, in turn, taking steps to strengthen our families, our communities and this great nation.”
At the core of this package is H.R. 5830, the FHA Housing Stabilization and Homeownership Retention Act, which would create a federal program to provide refinancing assistance to those in danger of losing their homes to foreclosure. Congressman Green worked with fellow Financial Services Committee members, Reps. Mel Watt and Nydia Velazquez, to include important language in H.R. 5830, which passed the House today as an amendment to H.R. 3221, that will increase funding for legal assistance related to home ownership preservation, home foreclosure prevention and tenancy associated with home foreclosure.
“Increasing numbers of foreclosure victims are turning to legal services programs for assistance,” Rep. Green stated. “Housing experts at non-profit community groups, who are the first line of defense for homeowners in trouble, do not have the staff to handle the amount of people seeking assistance. Borrowers and homeowners are trying to do what is right, but they often do not have and cannot afford the legal advice they need – legal advice that can make a meaningfully positive difference.”
The American Housing Rescue and Foreclosure Prevention Act contains a number of bi-partisan bills, including legislation to increase the Department of Veterans Affairs home loan limit, modernize the Federal Housing Administration (FHA) by expanding affordable mortgage loan opportunities for families and seniors and raise the GSE loan limits for single family homes in high cost areas. This comprehensive package also includes tax provisions to encourage home buying and improve access to low-income housing.
“There is no dream more fundamentally American than the dream of owning a home,” Rep. Green stated. “By passing the American Housing Rescue and Foreclosure Prevention Act, Congress took an important step in protecting that dream for current and future homeowners.”