Matheson Supports Housing Relief Bill

Washington, D.C.—Congressman Jim Matheson today supported a housing relief bill designed to shore up the shaky real estate market, which in turn is a major factor in the weakening economy.  Matheson voted for an amended HR 3221 – the American Housing Rescue and Foreclosure Prevention Act.

“This bill offers help to deserving homeowners, tightens regulation of the mortgage lending industry and sends important financial signals to the markets.  I think it is a responsible step to address a problem that affects a growing number of Utah homeowners and businesses,” said Matheson.

Matheson said the centerpiece of the legislation is a package of federal loan guarantees to help homeowners refinance into market-rate mortgages with better terms.  It also creates a new independent agency to regulate Fannie Mae, Freddie Mac and the Federal Home Loan Bank System.  Fannie Mae and Freddie Mac are government-sponsored entities that combined hold about $5 trillion worth of mortgage debt.  The legislation also extends tax credits of up to $7,500 for first-time homebuyers, effective until July 1, 2009.

Matheson said the bipartisan bill includes provisions sought by US Treasury Secretary Henry Paulson, arising from concern that a collapse of either Fannie or Freddie could cause a worldwide crisis in debt markets. The recent federal government takeover of a California mortgage bank has sparked consumer fears that the ongoing housing crisis might cause more banks to fail.

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