Neugebauer Denounces Housing Bailout Bill

Statement

NEUGEBAUER DENOUNCES HOUSING BAILOUT BILL

"At a time of economic insecurity, Congress puts taxpayers on the hook"

This afternoon, after the House passed H.R. 3221, American Housing Rescue and Foreclosure Prevention Act of 2008, Congressman Randy Neugebauer (TX-19), the Deputy Ranking Member of the Financial Services Committee and a former home builder and mortgage lender, released the following statement:

"Financial markets are not always kind, but they are efficient. Home equity should be determined by the marketplace, not the federal government. A government bailout for lenders and individuals who made poor choices it is simply irresponsible".

"In any investment, there is risk. At some point, individuals and lending institutions must take responsibility for the choices they have made. We must remember that 94 percent of Americans are making their mortgage payments in full and on time. The bottom line is that it is not in the government's or the taxpayers' best interest to determine the equity of someone's home; that is for the market to decide. The federal government should not be seen as a piggy bank to save the day for those who have acted irresponsibly.

"Within my 30 year career as a home builder and a mortgage lender, I have seen turmoil in the housing and other financial markets. History has proven time and again that the markets will self correct and some investors may lose money on a risk they have taken. While these are unfortunate circumstances, all investors should play on an equal field, without the federal government standing by to insulate one from a loss.

"This bailout is unfair to taxpayers. We have just sent the message that not only do they have to pay their own mortgage, but they have to pay their neighbors' mortgages as well."

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