Financial Services Committee to Hold April 9 and April 10 Hearing on Economic, Mortgage and Housing Rescue Bill
|April 8, 2008|
Washington, DC—House Financial Services Committee Chairman Barney Frank announced today the committee will hold a hearing on the economic, mortgage and housing rescue plan he announced last week. The April 9 hearing will include federal regulators, academics, economists and representatives of the cities and communities that are being negatively impacted by high numbers of foreclosures. Witnesses will be asked to discuss the proposal and to provide suggestions to the committee. Mr. Frank has pointed out publicly that we are in uncharted territory in the challenges to our economy, and he has been seeking input from a wide range of experts on this subject. This hearing is a part of that process.
The legislative proposal, which Mr. Frank outlined in a March 14 press conference with Senator Dodd, seeks to stem the significant rise in mortgage foreclosures by allowing the Federal Housing Administration (FHA) to insure refinanced mortgages that have been significantly written down by mortgage holders and lenders. In addition, the bill will allow for the bulk refinance and guarantee troubled loans and provide loans and grants to communities to purchase and return to occupancy vacant foreclosed homes. A detailed summary and the legislative text can be found on the Financial Services Committee website at http://financialservices.house.gov/FHA.html. The bill contains three main parts: