|For the people of the third district, the third-fastest growing Congressional district in the nation, this crisis has been particularly hard felt due to the fact that we see a higher volume of real estate transactions than many other regions around the country.
Under current law, state and local governments may issue bonds to finance new mortgage loans for first-time homebuyers. My legislation would temporarily expand the use of this program to include refinancing of sub-prime loans by temporarily changing the IRS code.
My proposal would also allow states to issue up to $15 billion in additional bonds over the next three years, providing home buyers facing foreclosure the opportunity to refinance at a more reasonable rate. According to the National Council of State Housing Agencies, my legislation would help roughly 80,000 families restructure their loans.
During 2008, nearly 2 million sub-prime borrowers will see their adjustable rate mortgages reset upward, with increases occurring every six months thereafter. Recent reports indicate that Nevada has the highest rate of foreclosures in the United States, with 1 in 154 homes in foreclosure versus the national average of 1 in 555.
This is clearly an area of deep concern as the sub-prime mortgage crisis has been a catalyst to our present economic challenges. Expanding state and local government’s bonding authority will help ensure that Boulder City families keep their homes by offering sustainable refinancing options and bringing greater stability to the market.
Contact U.S. Congressman Jon Porter at www.house.gov/porter.