2001CRE2140A H.R. 3206, THE ``HOME OWNERSHIP EXPANSION AND OPPORTUNITIES ACT''
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[Congressional Record: November 27, 2001 (Extensions)]
[Page E2140]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr27no01-37]
H.R. 3206, THE ``HOME OWNERSHIP EXPANSION AND OPPORTUNITIES ACT''
______
HON. JAMES H. MALONEY
of connecticut
in the house of representatives
Tuesday, November 27, 2001
Mr. MALONEY of Connecticut. Mr. Speaker, I come to the floor today to
make a brief statement about my cosponsorship of H.R. 3206, the ``Home
Ownership Expansion and Opportunities Act.''
By cosponsoring this legislation, I am expressing my support for new
ideas to provide additional opportunities for homeownership. This
legislation is intended to bring more competition into the secondary
mortgage marketplace, the result of which will be more opportunities
and lower costs for homebuyers.
The ``Home Ownership Expansion and Opportunities Act'' would allow
the Government National Mortgage Association (GNMA) to guarantee the
securities of conventional mortgages above the 85 percent loan to value
ratio, up to the statutory conventional mortgage limit. In case of
default, the participating private mortgage insurance companies (PMIs)
would bear the first level of loss.
Of course, our current mortgage financing system works well. After
all, homeownership in the United States is at an all time high. Any
system can be improved, however, so long as no industry or company is
ceded any structural competitive advantage.
Like any legislation, this proposal takes calculated risks to achieve
demonstrable gains. First, the federal government will guarantee these
mortgages. I see no reason, therefore, why we wouldn't see to it that
certain affordable housing goals are met and enforced. In doing so we
will ensure that all American's have access to affordable financing so
they can realize their dream of home ownership.
Additionally, because the federal government will be taking on some
of the risk associated with these mortgages, we must ensure that the
program is managed in the most fiscally prudent manner. That is why the
legislation includes a provision that any PMI participant receive an AA
rating or better from a nationally recognized rating agency, and must
meet additional requirements as determined by the Government National
Mortgage Association (GNMA). While the PMIs are regulated at the state
level, we may want to consider additional safety and soundness
mechanisms, to further minimize the risk to taxpayers.
I look forward to working with my colleagues as this proposal moves
through the legislative process. This bill serves as a starting point
to begin the debate on how best to accomplish our goal of increasing
homeownership for all Americans.
____________________