Blunt: Republican Plan Addresses Uncertainty in Housing Market Without Bailing Out Speculators

WASHINGTON, April 22 /PRNewswire-USNewswire/ -- U.S. Reps. Spencer Bachus (R-Ala.), Shelley Moore Capito (R-W.Va.), and Judy Biggert (R-Ill.) introduced legislation co-sponsored by House Republican Whip Roy Blunt (Mo.) designed to address the uncertainty in our nation's housing market during today's House Financial Services Committee hearing.

"I commend the efforts of Spencer Bachus, Shelley Moore Capito and Judy Biggert to bring forth important legislation that walks the fine line of helping stabilize the housing market while avoiding a dangerous over-reaction," Blunt said. "This bill avoids any form of taxpayer-funded bailouts to speculators and does not reward fiscal irresponsibility. This legislation is cost-effective, makes sense and should be considered as an alternative to what the Democratic majority has put forward."

The Bachus bill takes the right approach by working to support public and private efforts currently underway to help struggling homeowners while protecting homebuyers from predatory lending practices, Blunt said. The legislation will also safeguard the interests of taxpayers by preventing losses in federally-insured programs.

The legislation will:

-- Protect consumers from disreputable mortgage practices through
establishment of new registration and licensing requirements for all
mortgage originators.

-- Improve the FHA's ability to help struggling homebuyers by passing
long-overdue reforms and expanding participation in a program that
helps subprime borrowers transition into more sustainable FHA loans.

-- Improve regulation of Government Sponsored Enterprises such as Fannie
Mae, Freddie Mac, and the Federal Home Loan Banks through provisions
from GSE reform legislation that overwhelmingly passed the House last
year.

-- Provide homebuyers' access to better information through improved
disclosures for borrowers and increased support for counseling on
housing matters.

-- Encourage loan modifications by providing a safe harbor from legal
liability to servicers that modify loans and allowing Federal banking
agencies to consider a bank's record of moving borrowers into more
affordable products when considering their Community Reinvestment Act
obligations.

-- Promote responsible borrowing by requiring that subprime mortgages
have escrow accounts for taxes and insurance at the time the loan is
consummated.

-- Help veterans by temporarily raising loan limits for VA housing loans,
and doubling foreclosure protections for returning veterans.

-- Improve the integrity of the appraisal process.

-- Strengthen current mortgage fraud prevention efforts.

In addition to Bachus, Capito, Biggert and Blunt, the bill is co-sponsored by Republican Leader John Boehner (Ohio), GOP Conference Chairman Adam Putnam (Fla.) and Representatives Kay Granger (Tex), Thaddeus McCotter (Mich.), Deborah Pryce (Ohio), Jo Bonner (Ala.), Rogers (Ala.), Tom Latham (Iowa), Steve Chabot (Ohio), Michael Turner (Ohio), Chris Shays (Conn.), Peter Roskam (Ill.), Ginny Brown-Waite (Fla.), and Dean Heller (Nev.).

First Call Analyst:
FCMN Contact:

Source: House Republican Whip Roy Blunt

CONTACT: Nick Simpson, Antonia Ferrier or Chris Tucker, all of the
Office of House Republican Whip Roy Blunt, +1-202-226-7022

2008-04-22 18:05:55 0342599 PRNEWSWIRE