Washington, D.C. – Today, U.S. Congressman Henry Cuellar joined a majority in the House of Representatives in support of the American Housing Rescue and Foreclosure Prevention Act, which helps address the home mortgage foreclosure crisis. 

This landmark legislation will enable hundreds of thousands of homeowners to refinance their homes, switching from risky subprime mortgages to safer loans backed by the Federal Housing Administration. This legislation represents a sensible solution for both lenders who own debt affected by the housing downturn and for homeowners who are having trouble consistently paying their mortgage.

To participate in this voluntary program, the lender would have to be willing to write down a portion of the troubled mortgage, and the homeowner would have to agree to share future profits from the resale of the refinanced home with the federal government. In return, the Federal government will provide the financial support necessary to allow the loan to be refinanced in a reasonable fashion.

Combined with counseling for low-income and minority homeowners and tax credits for first-time homebuyers, the legislation will help put the economy on sound footing for years to come.

“We need to put a stop to this problem before it gets out of control. I applaud the efforts of my colleagues in the House who voted in support of this bill and continue making the American Dream of so many families a reality” said Congressman Cuellar.

In Texas, 99,495 homeowners filed for foreclosures and that number is projected to jump to 149,661 in 2008-2009.  It is estimated that between 7,000 and 8,000 people a day are filing for foreclosure on their homes across the United States, and that one in 33 homeowners is projected to be in foreclosure over the next two years as a result of subprime loans made in 2005 and 2006.

###

Congressman Henry Cuellar is a member of the House Homeland Security, Small Business, and Agriculture Committees in the 110th Congress; accessibility to constituents, education, health care, economic development and national security are his priorities. Congressman Cuellar is also a Senior Whip.