Washington, DC– U.S. Representative Judy Biggert (R-IL-13th), Chairman of the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity, today issued the following statement after the House approved H.R. 830, the FHA (Federal Housing Authority) Refinance Program Termination Act.  Biggert co-sponsored the bill to ensure that taxpayers won’t be forced to support an ineffective, $8.1 billion housing program that has proven to be a failure, refinancing a mere 44 loans in total.

           "President Ronald Reagan famously said -- with tongue-in-cheek, no doubt -- that the closest thing to eternal life on this earth is a federal government program.  At the risk of disproving the late president’s axiom, let me just say that H.R. 830 will demonstrate that Congress does have the good sense, the fortitude, and the wherewithal to bring an end to a federal program -- especially one that is not working. 

           “The program in question is the FHA Refinancing Program, which was authorized under the broadest of provisions in the TARP legislation, back in 2008.  In 2010, this program was conceived in haste, enacted with no vote in Congress, and designed to augment another failed program, the Making Homes Affordable Program or HAMP, which has done more harm than good.  

           “Under the FHA Refinancing Program, the FHA is directed to use TARP funds to refinance mortgages that are current but underwater.  Its record has been abysmal, with the FHA Commissioner stating during our hearing last month:  ‘As of February 11^th…44 loans have been endorsed.’

           “Where else but in Washington would it be a good idea to obligate $8 billion in taxpayers’ dollars -- and disburse 50 million of those dollars -- to help 44 homeowners?  Giving taxpayers almost nothing for a program they are funding is unacceptable. 

           “We need to make good on our promise to repay taxpayers for the failure of TARP, and focus on the best solution to fight underwater loans – job creation.” 

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