Robert P. Casey Jr.
Casey: Passage of Housing Bill Will Provide Overdue Relief
Includes new accountability and taxpayer protections called for by Casey
July 26, 2008
WASHINGTON, DC- U.S. Senator Bob Casey (D-PA), a member of the Senate Banking Committee, today applauded passage of a housing package designed to help homeowners, bolster confidence in the housing market and increase accountability for Fannie Mae and Freddie Mac. The bill will now go to President Bush, who now supports the bill, for his signature.
“At a time when 8,500 families go into foreclosure everyday, this package of legislation will provide some relief to homeowners, strengthen our economy and help to restore faith in our markets,” said Senator Casey. “We aren’t out of the woods yet and we must be vigilant in monitoring the economy and the implementation of this legislation, but this bill is a big step forward. I am also pleased that the final package includes provisions that I have called for that link new support for Fannie Mae and Freddie Mac with new accountability measures to protect taxpayers and to rein in executive compensation.”
Casey went on to say, “I'm also pleased that language I pushed to have included to prevent mortgage fraud by prohibiting the improper influence of the appraisal process by coercion, collusion, intimidation, and other measures is in the final bill. I also worked to further protect borrowers participating in the HOPE for Homeowners Program by mandating that appraisers that perform appraisals on homes insured by the program demonstrate competency with FHA appraisal standards.”
Senator Casey has been at the forefront of the congressional response to the subprime mortgage crisis.
Last week, Senator Casey outlined steps, many of which are included in the legislation, that could make Fannie Mae and Freddie Mac more accountable to taxpayers, rein in bonuses and salaries paid to executives as well as new measures to compensate taxpayers for their support when the entities fortunes turn around.
In May 2007, Senator Casey joined Senators Charles Schumer (D-NY) and Sherrod Brown (D-OH) in introducing the Borrowers’ Protection Act – the first major legislation to deal with the foreclosure crisis.
Senator Casey also helped secure $180 million in foreclosure prevention counseling funding last year. He also helped to secure an additional $150 million that is included in this housing legislation.
In April, Senator Casey held a Banking Committee field hearing in Philadelphia on predatory lending with Chairman Dodd.
In addition to authorizing new Treasury authority for Fannie Mae and Freddie Mac, the housing package includes:
GSE Reform legislation, which would create a new, effective regulator for the government-sponsored enterprises (GSEs) so that these vital institutions can safely and soundly carry out their important mission of providing our nation's families with affordable housing. In addition, this legislation would create a new program at the Federal Housing Administration (FHA) that would help at least 400,000 families save their homes from foreclosure;
The HOPE for Homeowners Act, which would establish a new initiative at the FHA to prevent foreclosures for hundreds of thousands of families at no cost to American taxpayers;
The S.A.F.E. Mortgage Licensing Act, which would create a federal registry and establish minimum national standards for all residential mortgage brokers and lenders;
The Foreclosure Prevention Act, which would provide assistance for communities devastated by foreclosures, foreclosure counseling for families in need, programs to help returning soldiers avoid foreclosure, FHA modernization, and mortgage disclosure enhancements; and
The Housing Assistance Tax Act of 2008, which would provide tax benefits for homeowners, homebuyers, and homebuilders aimed at helping the housing market recover.
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