News release from Barney Frank
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Congressman, 4th District, Massachusetts
2252 Rayburn Building · Washington, D.C. 20515 · (202) 225-5931
For Immediate Release:
Contact:
Steve Adamske (202) 225-7141
or Heather Wong (202) 226-3314
July 14, 2008
Statement of Chairman
Barney Frank on Housing Legislation
Washington, DC – House Financial
Services Committee Chairman Barney Frank today released the following
statement on pending housing legislation in the House of Representatives:
“Turmoil in the American mortgage
markets is at the root of a financial crisis that has undermined confidence
in and threatens the stability of the global financial system. Congress
will soon send the president a comprehensive package of legislation that
makes future crises less likely by: 1.) responding to the current situation;
2.) strengthening regulatory oversight and prohibiting the irresponsible
lending practices that brought us here; and 3.) addressing the lack of
affordable housing in America.
“First, the legislation we will
pass creates a new regulator for the GSEs with strong additional powers. We
also make it possible for the FHA to assist homeowners facing foreclosure by
refinancing them into sustainable loans. The bill will also strengthen the
FHA’s capacity to resume its historical role as a lender of first resort for
working families and first time homebuyers.
“Second, the bill will include the
proposals announced yesterday by Secretary Paulson to ensure that Fannie and
Freddie have the resources they need to continue to play their vital role in
America’s housing finance system.
“Third, in a long overdue measure,
the legislation creates an affordable housing trust fund that allows us to
address decades of under investment in the supply of housing for lower
income families.
“In addition, the Federal
Reserve today has adopted regulations implementing the Homeowners Equity
Protection Act, passed in 1994, so that the predatory and deceptive lending
practices that led to the subprime crisis will be prohibited. Those new
rules combined with H.R. 3915, the ‘The Mortgage Reform and Anti-Predatory
Lending Act of 2007’, which the House passed last year—and that Senator Dodd
assures me the Senate will address this year--will make the problem of
irresponsible lending far less likely in the future.”
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