Congressman Cohen's Statement on the Passage of the Foreclosure Bill

“The mortgage crisis affects all of us and is putting immense downward pressure on the economy. Families in the 9th District and across the country have lost their homes; millions more are on the brink of foreclosure and homeowners have seen their property values plummet. In Memphis, the foreclosure rate for the first quarter of 2008 increased nearly 23 percent from the previous quarter and 51 percent over the same period in 2007. And economists expect this quarter to be even worse. That is why it was so important that we passed this bill today, which I am happy to report that the President has agreed to sign. This legislation will help American families keep their homes and get our economy back on the right track. I’m proud Democrats and Republicans worked together on this important legislation. Together, we’ve crafted the right bill to address this crisis and I look forward to continuing to work with my colleagues to strengthen the economy.”

The American Housing Rescue and Foreclosure Prevention Act will allow hard-working American families in danger of losing their home to refinance into lower-cost government -insured mortgages they can afford to repay – at no cost to the American taxpayer. The legislation also:

• strengthens neighborhoods hardest hit by the foreclosure crisis by providing resources to allow cities and states to buy up and rehabilitate foreclosed properties that are currently driving down home prices, reducing state and local revenues, and destabilizing neighborhoods;
• expands homeownership opportunities for veterans and helps returning soldiers avoid foreclosure and stay in their home;
• provides tax breaks to spur home buying; and
• creates a new fund to boost the nation’s stock of affordable rental housing in both rural and urban areas for low and very low-income individuals and families.

The legislation passed today also includes provisions that will help restore confidence in financial markets and shore up Fannie Mae and Freddie Mac. The bill provides the Department of the Treasury with emergency and temporary financing authority for Fannie Mae and Freddie Mac. These two important government sponsored institutions hold or guarantee nearly half of all mortgages in the United States. Yesterday, the Congressional Budget Office said there was “a significant chance, probably better than 50 percent, that the proposed new Treasury authority would not be used before it expired at the end of December 2009.”

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Contact:
Marilyn Dillihay, Press Secretary, 202-225-3265
Charlie Gerber, Communications Assistant, 202-225-3265