New Housing Bill Could Hurt Kentucky Taxpayers

Tuesday, May 13, 2008

The House of Representatives recently passed several bills intended to address the unfortunate increase in foreclosures and their repercussions, like vacant properties and a lagging home market.  As a Member of the House Financial Services Committee, I am closely involved in this issue.  However, I am extremely concerned about the potential impact one bill in particular could have on residents of the Fourth District.

 Last week, the House passed H.R. 5830, the FHA Housing Stabilization and Homeownership Retention Act (FHSHRA).  FHSHRA is essentially a bailout program.  This bill would provide new loans to many irresponsible borrowers with the backing of the Federal Housing Administration.  The new program could refinance as much as $300 billion worth of loans at taxpayers’ expense.