Congressman Brad Sherman (D-CA) made the following statement after a House Financial Services Committee markup on the Protecting American Taxpayers and Homeowners Act.
"Yesterday I participated in a House Financial Services Committee markup on legislation intended to reform our country's housing finance system. Unfortunately the legislation under scrutiny--the Protecting American Taxpayers and Homeowners (PATH) Act--would in fact hurt taxpayers and homeowners and significantly threaten our nation's economic recovery.
"The PATH Act would end the affordable 30-year fixed rate mortgage for four-fifths of all home buyers, leaving many Californians with higher cost mortgages and causing housing prices to plummet as a result. The legislation would also hurt community banks and credit unions, limit the supply of rental housing, and put taxpayers at undue risk.
"During consideration of the PATH Act, I offered an amendment to prevent reduction of conforming mortgage loan limits for high-cost areas like the San Fernando Valley. Unfortunately the amendment did not pass. Despite resistance from my colleagues, please be assured I will continue to fight to protect Valley homeowners, our housing market, and our economy. As I mentioned at yesterday's markup, no one is defending the status quo, but that doesn't mean we should go back to the dangerous policies of the 1930s."