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Bay Area rep responds to Obama’s foreclosure plan

By Lisa Vorderbrueggen
Wednesday, February 18th, 2009 at 5:42 pm in housing, Obama presidency, U.S. House.

Rep. Ellen Tauscher, D-Alamo

Rep. Ellen Tauscher, D-Alamo

Rep. Ellen Tauscher, D-Alamo, issued the following statement today on President Obama’s Homeowner Affordability and Stability Plan:

The plan is designed to help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. The plan will help make mortgages more affordable by lowering monthly payments through refinancing; create a stability initiative that will encourage responsible loan modifications through such things as incentives to lenders; and seek to increase available credit and help maintain mortgage affordability through Fannie and Freddie.

“President Obama’s plan is part of a wide ranging strategy to jump start the economy by stemming the tide of foreclosures and providing some relief to homeowners and communities,” Tauscher said. “In the coming weeks and months, I will work with President Obama and Congressional leaders to make sure that my bill, the Housing Disaster Area Foreclosure Area Prevention Act, is part of a comprehensive solution to help homeowners in areas hardest hit by the foreclosure crisis.”

Tauscher has introduced the Housing Disaster Area Foreclosure Area Prevention Act, which would target the areas hardest hit by home foreclosures, including those in California. Under the bill, state housing agencies could provide aid to help homeowners who have “underwater mortgages” – where they owe more than the value of their home – and allow state housing agencies to use money from the $700 billion financial rescue package to help families restructure their mortgages.

From House Minority Leader John Boehner, R-Ohio:

“The housing crisis is at the heart of our economic troubles, and House Republicans want to work with the President on a plan that keeps families in their homes without asking taxpayers to bail out irresponsible lenders, scam artists, and borrowers who knowingly made bad decisions. While we hope to work together, there are many unanswered questions that remain about the proposal that was announced today. Why should we reward Fannie Mae and Freddie Mac with $200 billion in taxpayer dollars without first reforming these housing entities that were at the heart of the economic meltdown? Will taxpayers be forced to subsidize the scandal-plagued activist group ACORN under this proposal? Should a responsible plan include a ‘cramdown’ provision that could increase the monthly mortgage payments for responsible borrowers?

“Taxpayers and homeowners who are playing by the rules expect their leaders in Washington to work together on solutions to get our housing industry – and our entire economy – moving again. The President’s announcement of his plan is an important step in that process, and Republicans look forward to working with him and our Democratic colleagues in Congress on this issue in the weeks and months to come.”

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  • Doug

    Why are we about to use our tax money to bail out people who bought houses that were WAAAAAY beyond what they could afford? And they knew it when they bought it. Statistics of the early mortgage adjustments show that over 60% of those who had their payments reduced were in default again within 60 days. Am I completely out of line to suggest that our oh-so-bright government send big checks to the responsible people who will do responsible things with it?

  • Elwood

    I’m all in favor of wonderfulness.

    I just wonder who’s going to pay for it all?

    It looks to me like sensible people who lived within their means will now be penalized through higher taxes to bail out the dummies.