Tubbs Jones Votes in Favor of Homeownership Expansion Legislation

    CLEVELAND, Sept. 18 /PRNewswire-USNewswire/ -- Today, Congresswoman
 Stephanie Tubbs Jones released this statement in support of H.R. 1852, The
 Expanding American Homeownership Act of 2007. The measure passed the House
 348 - 72.
     "With the meltdown of the mortgage industry, unprecedented predatory
 lending practices and excessive foreclosures, this legislation provides a
 prime opportunity for The Federal Housing Administration (FHA) to reassert
 its traditional role of meeting unmet mortgage market needs. H.R. 1852 is
 intended to increase the market share of mortgages insured by Federal
 Housing Administration (FHA), and to encourage greater stability in the
 mortgage market in coming years. It raises loan limits for FHA-backed
 loans, boosts loan limits in high-cost areas, allows the agency to vary the
 premiums it charges borrowers based on their credit risk, modifies
 disclosure requirements to provide more information concerning mortgage
 choices, and allows for lower monthly payments for borrowers who make
 on-time payments for the first five years of a loan. It also extends the
 maximum loan term on FHA single-family loans to 40 years from 35 years.
     "Predatory Lending is a leading cause of foreclosures across this
 country. It compromises the opportunity to own a home and hinders economic
 stability, creating greater disparities in wealth. In my home state of
 Ohio, new foreclosure cases grew by 24% in one year. Cuyahoga County led
 the state in new cases with 13,610 new filings last year. This ranking has
 attracted national attention with Ohio's foreclosure rate currently at 18%
 which is higher than the national average of 17%.
     "Subprime lending provides affordable mortgage credit to borrowers with
 less than perfect credit histories, but who are still creditworthy.
 Predatory lending occurs when lenders impose excessive rates and fees,
 prepayment penalties, and reset terms that can result in exorbitant
 interest rate increases. I believe that FHA could serve subprime borrowers
 at more attractive rates and provide fairer mortgage opportunities than
 predatory lenders.
     "This bill includes many important provisions including requiring the
 FHA to provide 'payment incentives' for borrowers that make on-time
 payments for at least the first five years of a loan. The measure
 authorizes the department to offer these incentives to borrowers after a
 period of three years of on- time payments. Additionally the bill
 authorizes funds from FHA profits, to be used for an affordable housing
 fund. This fund is important as it would provide grants to support
 affordable rental housing and homeownership opportunities for low-income
 families.
     "One of the first steps towards the 'American Dream' is homeownership
 and I want to make sure that everyone is given the opportunity to not only
 attain but retain that goal. This legislation is a positive step in that
 direction."
     Over the past two weeks, Rep. Tubbs Jones participated in home
 preservation workshops, where she had an opportunity to meet with various
 organizations and lenders in her Congressional district to discuss loss
 mitigation plans for homeowners that are in loans set to readjust to higher
 rates as well as those that are facing foreclosure. Representatives of
 lenders, servicers, housing counseling agencies, and state, county and
 federal housing officials were on site to meet with individuals to discuss
 their personal situations.
     Additionally, Rep. Tubbs Jones reintroduced the Predatory Lending
 Practice Reduction Act, H.R. 2061. This legislation calls for federal
 certification of mortgage brokers and agents and stiffer penalties for
 violation of federal law. Additionally, it will authorize funding for
 Community Development Corporations to provide training and counseling on
 the home buying process.
 
 

SOURCE Office of Congresswoman Stephanie Tubbs Jones