Washington, DC – U.S. Representative Judy Biggert (R-IL-13th) today issued the following statement after the House passed a housing stimulus package, H.R. 3221, which includes increased funding for housing counseling, reforms of the Federal Housing Administration (FHA), and modernization of the Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac, as well as several grants, tax credits, and a temporary federal backstop for Fannie and Freddie designed to shore up the financial markets:
 
            “I don’t think either side is thrilled with the final housing compromise we passed today, although that’s not always a bad thing.  The good news is that the plan includes the three pillars of housing reform that I have been promoting for years – increased housing counseling, FHA reform, and an improved GSE regulator.  Taken together, these three portions of the bill promise to have a positive, stabilizing effect on the market without squandering taxpayer dollars.
 
            “Housing counselors can help prevent foreclosures by guiding homeowners into a loan that best meets their budget and needs.  And FHA and GSE reforms will help bolster investor confidence, add liquidity to the market, and provide more consumers with an alternative to bad, subprime loans.  These are important steps we can take to help hard-working Americans keep their homes, restore neighborhoods, and promote economic growth.
 
            “The bad news is that Congress waited so long before agreeing on significant changes at the GSE’s, Fannie and Freddie.  The House began the process three years ago when it passed a bill – with my support -- that would have improved regulation of these companies and may have averted some of the financial turmoil they are now experiencing.  But instead of moving forward during this Congress on a bipartisan basis, House and Senate leaders wasted time outbidding each other on how much taxpayer funding to spend on bailing out irresponsible lenders and those who speculated that the market would go up forever.  Now they’ve run out the clock, and Congress is being forced to risk taxpayer dollars in order to avert the economic crisis that could occur if the two companies failed.  That kind of leadership is simply not acceptable.
 
            “Disappointingly, the final version of the bill also includes several irresponsible measures that I had hoped to see dropped.  It siphons money from Fannie and Freddie to pay for a new congressional slush fund for housing programs, and it puts into place a poorly thought-out FHA refinancing scheme.  The block grants also represent an unwise use of taxpayer dollars.  I’m pleased that the Senate made some changes to improve these programs, but I think they could have done much better.
 
            “That said, the current economic situation requires immediate action or we risk facing a far worse situation down the road.  And its failings aside, this legislation will have a positive impact on the American housing market, and it will help homeowners struggling in a tough economy.  Right now, the market urgently needs confidence and stability to recover, and this bill provides some of both.”

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