Includes new accountability and taxpayer protections called for by Casey
WASHINGTON, DC- U.S. Senator Bob Casey (D-PA), a member of the Senate Banking Committee, took to the floor today to support progress to pass a housing package designed to help homeowners, bolster confidence in the housing market and increase accountability for Fannie Mae and Freddie Mac. Congress is expected to approve the bipartisan housing package this week.
“After much debate and delay, Congress is set to pass a housing package that will help homeowners and the economy,” said Senator Casey. “This package will provide some relief to homeowners, strengthen our economy and help to restore faith in our markets.”
Senator Casey continued: “It is also good to see that President Bush has finally dropped his long-standing veto threat that has held up final passage of this bipartisan legislation.
“I am pleased that the final package includes provisions that I have called for that link new support for Fannie Mae and Freddie Mac with new accountability measures to protect taxpayers and to rein in executive compensation.
“These two mortgage giants have to prove to taxpayers that they're going to be accountable. They have to put practices in place and measures in place.
“I have joined those who have raised questions about the new support for Fannie Mae and Freddie Mac. These questions have led to an improved package. We can’t forget that the other question we have to ask is: what is the cost of letting them fail?”
Senator Casey has been at the forefront of the congressional response to the subprime mortgage crisis.
Last week, Senator Casey outlined steps that could make Fannie Mae and Freddie Mac more accountable to taxpayers, rein in bonuses and salaries paid to executives as well as new measures to compensate taxpayers for their support when the entities fortunes turn around.
In May 2007, Senator Casey joined Senators Charles Schumer (D-NY) and Sherrod Brown (D-OH) in introducing the Borrowers’ Protection Act – the first major legislation to deal with the crisis.
Senator Casey also helped secure $180 million in foreclosure prevention counseling funding last year. He also helped to secure an additional $150 million that is included in the housing package currently being considered.
In April, Senator Casey held a Banking Committee field hearing in Philadelphia on predatory lending with Chairman Dodd.
In addition to authorizing new Treasury authority for Fannie Mae and Freddie Mac, the housing package includes:
GSE Reform legislation, which would create a new, effective regulator for the government-sponsored enterprises (GSEs) so that these vital institutions can safely and soundly carry out their important mission of providing our nation's families with affordable housing. In addition, this legislation would create a new program at the Federal Housing Administration (FHA) that would help at least 400,000 families save their homes from foreclosure;
The HOPE for Homeowners Act, which would establish a new initiative at the FHA to prevent foreclosures for hundreds of thousands of families at no cost to American taxpayers;
The S.A.F.E. Mortgage Licensing Act, which would create a federal registry and establish minimum national standards for all residential mortgage brokers and lenders;
The Foreclosure Prevention Act, which would provide assistance for communities devastated by foreclosures, foreclosure counseling for families in need, programs to help returning soldiers avoid foreclosure, FHA modernization, and mortgage disclosure enhancements; and
The Housing Assistance Tax Act of 2008, which would provide tax benefits for homeowners, homebuyers, and homebuilders aimed at helping the housing market recover.
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“After much debate and delay, Congress is set to pass a housing package that will help homeowners and the economy,” said Senator Casey. “This package will provide some relief to homeowners, strengthen our economy and help to restore faith in our markets.”
Senator Casey continued: “It is also good to see that President Bush has finally dropped his long-standing veto threat that has held up final passage of this bipartisan legislation.
“I am pleased that the final package includes provisions that I have called for that link new support for Fannie Mae and Freddie Mac with new accountability measures to protect taxpayers and to rein in executive compensation.
“These two mortgage giants have to prove to taxpayers that they're going to be accountable. They have to put practices in place and measures in place.
“I have joined those who have raised questions about the new support for Fannie Mae and Freddie Mac. These questions have led to an improved package. We can’t forget that the other question we have to ask is: what is the cost of letting them fail?”
Senator Casey has been at the forefront of the congressional response to the subprime mortgage crisis.
Last week, Senator Casey outlined steps that could make Fannie Mae and Freddie Mac more accountable to taxpayers, rein in bonuses and salaries paid to executives as well as new measures to compensate taxpayers for their support when the entities fortunes turn around.
In May 2007, Senator Casey joined Senators Charles Schumer (D-NY) and Sherrod Brown (D-OH) in introducing the Borrowers’ Protection Act – the first major legislation to deal with the crisis.
Senator Casey also helped secure $180 million in foreclosure prevention counseling funding last year. He also helped to secure an additional $150 million that is included in the housing package currently being considered.
In April, Senator Casey held a Banking Committee field hearing in Philadelphia on predatory lending with Chairman Dodd.
In addition to authorizing new Treasury authority for Fannie Mae and Freddie Mac, the housing package includes:
GSE Reform legislation, which would create a new, effective regulator for the government-sponsored enterprises (GSEs) so that these vital institutions can safely and soundly carry out their important mission of providing our nation's families with affordable housing. In addition, this legislation would create a new program at the Federal Housing Administration (FHA) that would help at least 400,000 families save their homes from foreclosure;
The HOPE for Homeowners Act, which would establish a new initiative at the FHA to prevent foreclosures for hundreds of thousands of families at no cost to American taxpayers;
The S.A.F.E. Mortgage Licensing Act, which would create a federal registry and establish minimum national standards for all residential mortgage brokers and lenders;
The Foreclosure Prevention Act, which would provide assistance for communities devastated by foreclosures, foreclosure counseling for families in need, programs to help returning soldiers avoid foreclosure, FHA modernization, and mortgage disclosure enhancements; and
The Housing Assistance Tax Act of 2008, which would provide tax benefits for homeowners, homebuyers, and homebuilders aimed at helping the housing market recover.
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