Baldwin Backs Comprehensive Plan to Support Homeowners

Press Release

Baldwin Backs Comprehensive Plan to Support Homeowners

Legislation Addresses Mortgage Crisis

Congresswoman Tammy Baldwin (D-WI) today backed the most comprehensive response yet to the American mortgage crisis. The American Housing Rescue and Foreclosure Prevention Act of 2008 (H.R. 3221) will help families and local communities hit hard by the foreclosure crisis, and strengthen the economy and financial markets. The bill was passed today in the House by a vote of 272-152.

"The mortgage crisis affects all of us," Baldwin said. "Families throughout Wisconsin and the nation have lost their homes; millions more are on the brink of foreclosure and homeowners have seen their property values plummet. The legislation we passed today takes positive steps to help families stay in their homes and get our economy back on track," she added.

The American Housing Rescue and Foreclosure Prevention Act will allow families in danger of foreclosure to refinance into lower-cost government-insured mortgages they can afford to repay - at no cost to the American taxpayer. The legislation also:

* strengthens neighborhoods hardest hit by the foreclosure crisis by providing resources to allow cities and states to purchase and rehabilitate foreclosed properties that are currently driving down home prices, reducing state and local revenues, and destabilizing neighborhoods;
* expands homeownership opportunities for veterans and helps returning soldiers avoid foreclosure and stay in their home;
* provides tax breaks to spur home buying; and
* creates a new fund to boost the nation's stock of affordable rental housing in both rural and urban areas for low and very low-income individuals and families.

The legislation passed today also includes provisions that will help restore confidence in financial markets and shore up Fannie Mae and Freddie Mac, institutions that hold or guarantee nearly half of all mortgages in the United States. The bill provides the Department of the Treasury with emergency and temporary financing authority for Fannie Mae and Freddie Mac.

The legislation has earned the support of Democrats and Republicans in both the House and Senate and President Bush has indicated that he will sign the bill into law.

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