Housing and Economic Recovery Act of 2008

Floor Speech

* Ms. ESHOO. Mr. Speaker, I rise today to express my strong support for H.R. 3221, the American Housing Rescue and Foreclosure Act of 2008. I salute Chairman FRANK, Chairman RANGEL and Senator DODD for their leadership and their efforts to pass this crucial legislation at a time when American families desperately need our help.

* Families across the country are hurting. They're being squeezed by the price of oil, rising food costs, higher education costs and now the struggle to hold onto their homes. For most Americans their main asset is their home. That's why it is critical to end the foreclosure crisis which is fundamental to the recovery of our economy.

* My home State of California has been affected as badly as any State in our country. Foreclosures in the Bay area are at a 20-year high, and in Santa Clara County foreclosures are up 512 percent from a year ago. These troubling figures must change and that's why I support this legislation.

* H.R. 3221 aims to bolster American homeownership by helping families across the country facing foreclosure keep their homes. It also takes steps to ensure that homeowners do not face foreclosures in the future. Affordable mortgage loan opportunities for families and seniors are expanded through the modernization of the Federal Housing Administration, with FHA loan limits raised to create affordable mortgage loans for moderately priced homes. A permanent Affordable Housing Trust Fund is also created in this bill which will fund building projects throughout the Nation to increase the stock of affordable housing in both urban and rural areas. Tax credits for first time homebuyers and low income homeowners are also included in this legislation and all of these items are accomplished without creating any new burdens to the taxpayer.

* The bill provides a new and substantially strengthened regulator to oversee Fannie Mae, Freddie Mac and the Federal Home Loan Banks. It gives stand-in authority to the Treasury Department in case the Government Sponsored Entities, such as Fannie Mae, require temporary federal financial intervention without placing any new risk on the American taxpayer. This is not a bailout. Taxpayers will be the first in line to be paid back before any shareholders are. Restrictions have been placed on the stock gains for shareholders and on compensation for the executives of the Government Sponsored Entities until taxpayers are fully reimbursed.

* I'm proud to support this bill and I urge a ``yes'' vote on the underlying legislation.

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