Press Releases
Brendan Daly/Nadeam Elshami
202-226-7616
12/18/2007
Pelosi: Subprime Mortgage Bill Will Help Struggling Homeowners Facing Threat of Foreclosure
“Today’s legislation is a critical step by the New Direction
Congress that helps struggling homeowners who are faced with ballooning mortgage
payments and the threat of foreclosure.
Under the bill, homeowners will not be hit with a tax on ‘phantom
income’ resulting from foreclosure or renegotiation of their home loans. Families facing the loss of their homes
should not face a huge tax bill to boot.
“The economy demands a stronger proposal than one announced
by the Bush Administration, which is why the New Direction Congress is pressing
ahead with a comprehensive agenda that will bolster our housing market, limit
foreclosures, and protect families against risky loans. These measures are all the more necessary
given the Federal Reserve’s failure today to go far enough to protect consumers
against risky subprime mortgages.
“I hope the President will sign this strong legislation and work with us to enact our comprehensive subprime strategy that goes far beyond the Administration’s limited plan.”