Washington, DC – U.S. Representative Judy Biggert (R-IL-13) today sent a letter to the House Speaker Nancy Pelosi (D-CA-08) urging her to begin immediate negotiations with the Senate on legislation that promises to stem foreclosures and boost the housing market.  Cosigned by 13 Republican members of the House Financial Services Committee, the letter calls for an immediate conference on House- and Senate-passed Federal Housing Administration (FHA) reform bills.
 
           “This isn’t just about helping people keep their homes,” said Biggert, Ranking Member of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit.  “FHA reform will add much-needed credit to the market, help restore investor confidence, and contribute to the greater economy.  For most families, a home is their primary investment, and we can help make that investment more secure.”
 
The full text of the letter and a list of cosigners can be found below:
 
 
February 7, 2008
 
The Honorable Nancy Pelosi
Speaker
U.S. House of Representatives
Office of the Speaker
H-232, US Capitol
Washington, DC 20515
 
Dear Speaker Pelosi:
 
We write to urge you to immediately initiate conference proceedings on Federal Housing Administration (FHA) reform legislation, which passed both the House and Senate last year.
 
As you are aware, the U.S. economy has entered a period of great uncertainty.  Real GDP growth has declined, and the Bureau of Labor Statistics reported last month an alarming loss of 17,000 jobs.  While many factors – from energy costs to food prices – have contributed to our economic challenges, it is clear that reducing volatility in the struggling housing market can help to restore property values and put America back on a sound financial footing. 
 
We applaud your willingness to work with the House Republicans and the Administration on a bipartisan economic stimulus package that will increase the conforming loan limits for FHA-insured and GSE (Fannie Mae, Freddie Mac) -backed mortgages.  We hope the Senate acts quickly to enact this important bill, which will increase the availability of credit without burdening taxpayers with the costs of an inappropriate bailout.  We also applaud the President’s FHASecure initiative, which provides qualified homeowners with solid payment histories an opportunity to avoid foreclosure by refinancing with an FHA loan.
 
However, we believe that more can and should be done. 
 
Comprehensive FHA reform will provide millions of homeowners a modern, viable alternative to subprime and predatory mortgages.  As it did in the 1980’s, a strong FHA can help troubled borrowers to avoid foreclosure and provide a needed boost to America’s housing market.  Yet over four months after the House passed FHA reform (H.R. 1852), and almost two months after the Senate followed suite (S. 2338), neither the House nor Senate has taken any steps to begin reconciling these bills and move this legislation to the President’s desk.
 
During September’s debate on H.R. 1852, House Financial Services Committee Chairman Frank (D-MA) said, “We will have a genuine three-sided conference; ourselves, both parties; the Senate, both parties; the Secretary of the Treasury, the Secretary of HUD.”
 
We ask you to make good on this promise and do so as quickly as possible.  By sending a final product to the President’s desk before the end of February, we could potentially help hundreds of thousands of Americans keep their homes.
 
We look forward to your response.
 
Sincerely,
 
Judy Biggert (R-IL), Ranking Member, House Financial Services Subcommittee on Financial Institutions and Consumer Credit
 
Spencer Bachus (R-AL), Ranking Member, House Financial Services Committee
 
Shelley Moore Capito (R-WV), Ranking Member, House Financial Services Subcommittee on Housing and Community Opportunity
 
Deborah Pryce (R-OH), Ranking Member, House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
 
Christopher Shays (R-CT), Kenny Marchant (R-TX), John Campbell (R-CA), Steven LaTourette (R-OH), Kevin McCarthy (R-CA), Randy Neugebauer (R-TX), Donald Manzullo (R-IL), Peter Roskam (R-IL), Thaddeus McCotter (R-MI), and Mike Castle (R-DE), Members of the House Financial Services Committee

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