Foreclosure Prevention Act of 2008

FORECLOSURE PREVENTION ACT OF 2008 -- (House of Representatives - May 08, 2008)

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Mrs. BLACKBURN. Mr. Speaker, I heard from one of my constituents who said they felt like this bill was not really about rescuing homeowners, they felt like it was another attempt at wealth redistribution. They felt that the risk and the costs that are borne and should be borne by irresponsible lenders, investors, and borrowers are going to end up being transferred to the Federal Government and thereby to the American taxpayer once again. And this time, it is to the tune of $300 billion.

What the bill does is the good actors, the 92 percent of all mortgage holders who are paying their mortgage on time, they are going to end up being liable for the irresponsible actions of lenders and speculators. The way my constituencies see it, this is a risky business. This Congress should not send a message that it is acceptable to give up on an obligation because you're going to have a government buyout or a bailout and you are going to be able to cut your personal losses.

Last week I did a seminar in my district. I worked with some government and private sector initiatives such as Hope Now, working to help homeowners weather the storm, to get the information to them that they needed.

Mr. Speaker, that is what we should be doing, educating homeowners on the options at their disposal, as opposed to passing measures that reward recklessness and provide a safety net for irresponsibility. Congress does not need to bail out the housing market, it needs to encourage a kick start. I hope that my colleagues will join me and that together we will vote this bill down.

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