Congressman Rick Larsen's Online Office

Washington, D.C. — Today U.S. Representative Rick Larsen joined a majority of his colleagues in the House to pass the most comprehensive housing legislation in a generation to restore confidence in the housing market, help families facing foreclosure keep their homes, and protect the largest and most important investment for millions of American families. Senate passage is expected, and earlier today the President announced that he would sign the legislation.

“Today Congress took action to protect the most important investment millions of families have – their homes,” said Larsen. “If home ownership is the heart of our economy, this legislation is the CPR we need.”

The number of American homeowners filing for foreclosure was up 50 percent in June compared with a year ago.  Three to four million families are expected to lose their homes to foreclosure because they cannot afford their high-interest loans.  And the slump in the housing market has hurt other parts of the economy, contributing to a decline in consumer confidence and spending and a loss of construction jobs.

The American Housing Rescue & Foreclosure Prevention Act (H.R. 3221):

• Restores confidence in the housing market by putting a new, independent regulator in charge of Fannie Mae and Freddie Mac -- which back more than half of home mortgages in the country -- and giving the Treasury Department the authority to intervene if needed
• Expands affordable mortgage opportunities for families by permanently increasing loan limits from Fannie Mae, Freddie Mac and the Federal Housing Administration
• Helps families in danger of losing their home refinance into lower-cost, government-insured mortgages they can afford to repay – at no cost to the American taxpayer
• Provides a tax break for first-time homebuyers of up to $7,500 to be paid back interest-free over 15 years
• Creates a new affordable housing trust fund to boost the availability of affordable rental housing in both rural and urban areas for low and very low-income Americans
• Expands homeownership opportunities for veterans

“Too many families have lived through a foreclosure nightmare,” Larsen continued. “This legislation will help restore the American dream of homeownership.”