Expanding American Homeownership Act of 2007

Floor Speech

EXPANDING AMERICAN HOMEOWNERSHIP ACT OF 2007 -- (Extensions of Remarks - September 24, 2007)

* Mr. LANGEVIN. Madam Chairman, I rise in strong support of the Expanding American Homeownership Act of 2007 (H.R. 1852). This important piece of legislation will revitalize the Federal Housing Administration (FHA), which was established to provide a reliable source of affordable mortgage loans for first-time homebuyers. Through our efforts today, the FHA will be able to better assist America's working families by offering loans at affordable rates with fair terms, as we work to alleviate the problems caused by the continuing mortgage crisis.

* The lack of affordable housing has long plagued many communities throughout America, and the problem is particularly acute in high cost areas like Rhode Island. In Rhode Island, the average two-bedroom apartment costs $1172 per month--at that rate, many people would need to work two or even three jobs just to pay the rent. And the situation can be even worse for those struggling to buy their own homes, particularly in today's uncertain climate. Unscrupulous lending practices have taken their toll on hard-working families, who are increasingly unable to keep pace with their ballooning mortgage payments.

* The Expanding American Homeownership Act of 2007 will provide much-needed relief for families on the brink of foreclosure. In particular, this targeted legislation will allow the FHA to raise loan limits in high cost areas and to offer zero and lower down payment loan options for borrowers that can afford mortgage payments, but lack the resources required for a down payment. H.R. 1852 will also require that an additional $300 million per year be placed in the affordable housing trust fund, which will help to provide affordable housing for years to come.

* Finally, I am pleased that the bill will double current funding levels for housing counseling services. These critical services will provide additional guidance to homebuyers in the subprime market and others who have difficulty making their monthly mortgage payments.

* In passing the Expanding American Homeownership Act today, we have made a commitment to the American people that we will continue to ensure affordable housing is available to all Americans. Strengthening the security of American families strengthens our economy, and I urge my colleagues to support this measure.

Source