RESTORING THE PROMISE OF HOMEOWNERSHIP

For too long, the dream of homeownership has evaded too many people in places like the North Bay Area, where they cost of living far exceeds much of the rest nation.  Because of this, fighting for the implementation of conforming loans limits, which allow for flexible federal loan caps to accommodate the needs of people who live in high cost areas, has been a priority for me. That’s why I supported H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act, when it passed the House and Senate and was signed into law.  This bill makes permanent conforming loan limits to help people in high cost areas like the North Bay be able to afford homes.

In addition, H.R. 3221 addresses the looming mortgage crisis.  It provides mortgage refinancing assistance by expanding the Federal Housing Assistance (FHA) program so that borrowers in danger of losing their home can refinance into lower-cost government-insured mortgages they can afford to repay. It also provides funding for financial counseling to help educate families so that they are able stay in their homes, and provides a tax credit for first time homebuyers.

It’s clear that the mortgage crisis has been exacerbated because people don’t have enough information about the options they have to get help.  In order to help people stay in their homes, I hosted a foreclosure clinic with some of our leading local credit unions, banks, and financial advisors so that people could feel safe in asking questions and getting the help that they need.

Something must be done to stop the rate of foreclosure.  That’s why I’m a cosponsor of H.R. 6076, the Home Retention and Economic Stabilization Act, which would provide homeowners with much-needed time to prepare for a mortgage reset, pursue reasonable options to renegotiate their loans, and seek counseling assistance.  This bill would also require the mortgage holder to provide a detailed notification letter to homeowners 120 days prior to any adjustment in the required monthly payment on their mortgage.

While it’s crucial to help families facing foreclosure, we also need to reform the mortgage industry and sub prime lending practices that have gotten us into this foreclosure crisis.  That’s why I supported H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act, when it passed the House.  This bill would place additional regulations on the mortgage industry to require that loans are in the best interest of the borrower and that borrowers have all available information in which to make the best decisions.

Homeownership is a cornerstone of the American Dream and we must take steps to ensure that everyone have access to safe, clean, and affordable housing.

(updated Sept. 2008)