Wednesday, July 23, 2008
MEDIA CONTACT: STEVEN ENGELHARDT (314) 504-4029
American Housing Rescue & Foreclosure Act Will Help Stabilize Housing Market
&ldquo Clay Says Bill Will Keep Millions of Families in Their Homes, Create New Fund to Boost Affordable Housing”
WASHINGTON, DC &ndash Congressman Wm. Lacy Clay (D) Missouri, praised today's passage of H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008. The sweeping legislation will help families keep their homes; aid local communities hit hard by the foreclosure crisis and strengthen the economy and financial markets. The bill was passed today in the House by a vote of 272-152.
"Today, the House acted to stabilize the bedrock of the American dream… home ownership," said the Congressman. "The American Housing Rescue & Foreclosure Prevention Act of 2008 will provide guaranteed backing for Fannie Mae & Freddie Mac, should they require it. It will also give millions of homeowners, who are in danger of losing their homes because of unsound and deceptive lending practices, a chance to refinance their homes into lower-cost, fixed-rate mortgages.
Our bill will also help cities and states hit hardest by the foreclosure crisis, to buy up and rehabilitate those homes. I am especially pleased that this legislation includes an amendment which I authored that will ensure that housing rescue funds be targeted first to areas with the highest density of foreclosed properties.
This legislation also creates a much-needed new fund to boost the nation's stock of affordable rental housing.".
The legislation 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 .
Fannie Mae and Freddie Mac are essential financial institutions that hold or guarantee nearly half of all mortgages in the United States.