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I represent Stockton, California, which unfortunately suffers from the highest foreclosure rate in the country. Many families throughout Northern California have lost their homes, and the foreclosures have led to personal hardships, community instability, and economic turmoil.
When constituents ask me what Congress is doing to fix the economy, I tell them we’re pushing to create family wage jobs and put money back in people’s pockets. Today, we’re building on these efforts and considering legislation that will provide fiscally responsible options for families struggling to stay in their homes.
Last December, I hosted a foreclosure workshop in Stockton with my colleague, Congressman Cardoza, to provide housing counseling to local families. While we expected turnout to be high, participants started lining up two hours early, and ultimately, more than 500 people showed up. I heard heartbreaking stories from my constituents, and this is just a single illustration of why today’s legislation is so important.
One of the biggest challenges facing the housing market in high cost states like California is that housing programs have not kept pace with the times. Unrealistically low loan limits for Fannie Mae, Freddie Mac, and FHA mean that people living in high cost states have not fully benefited from these programs.
I worked hard to make sure that the Economic Stimulus package included loan limit increases to nearly $730,000. Raising the loan limits injects liquidity into the mortgage market to provide access to credit and opens new opportunities for refinancing. However, these increases are only temporary, and it is clear that making them permanent will have beneficial effects for the housing market.
I introduced the Homeowner Opportunity Act to permanently raise the loan limits, and I am particularly pleased that today’s legislation includes my bill. I want to thank Chairman Frank for his all of his support and assistance. This change will benefit my constituents and the entire country.
I urge all of my colleagues to support this provision, and I yield back.
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