WASHINGTON, DC – House Majority Leader Steny H. Hoyer (MD) released the following statement today in response to a new Administration plan to freeze interest rates for up to five years on subprime loans:
"I am pleased with Secretary Paulson’s plan to aid borrowers at risk for foreclosure as the result of interest rate resets scheduled to impact nearly two million homeowners. This is a good start, however this plan may need to be expanded to help as many homeowners as appropriate.
"Additionally, while I appreciate the Administration's suggestions to Congress regarding actions that need to be taken to mitigate the housing crisis, the House has already acted on every single one of their proposals. This year the House has passed several pieces of legislation that will reform the Federal Housing Administration; strengthen oversight of Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks; protect consumers and prohibit unfair lending practices; end a tax on phantom income when a loans are forvigen as a result of foreclosure; and establish a national affordable housing trust fund. We hope to see those proposals become a part of the response to restoring the housing market and the broader economy, as well as preserving homeownership opportunities.
"I am sure that should additional legislation be required to provide homeowners with the remedies they need, the House will work with the Secretary to respond in a timely way."