The U.S. House of Representatives Wednesday approved legislation aimed at helping 400,000 strapped homeowners avoid foreclosure and preventing the collapse of troubled mortgage companies Fannie Mae and Freddie Mac.
We have mixed feelings about the legislation. It helps homeowners avoid foreclosure, but it is also a bail out of large, privately-owned businesses that shouldn't need it.
Local Democratic Congresswoman Tammy Baldwin was one of 272 legislators to approve the measure.
"The mortgage crisis affects all of us," Baldwin said. "Families throughout Wisconsin have lost their homes; millions more are on the brink of foreclosure and homeowners have seen their property values plummet."
The American Housing Rescue and Foreclosure Prevention Act will allow families to refinance into lower-cost government-insured mortgages. Multiple state Democrats say this will be at no cost to American taxpayers.
Paul Ryan, a Republican who represents an area including Janesville, was one of 152 lawmakers to vote against the bill.
"My top priority is to protect the taxpayers," Ryan said. "Our current policy toward Fannie and Freddie is not only dysfunctional and rife with bad incentives, it also has potentially disastrous consequences for taxpayers."
In an editorial in Investors Business Daily, Ryan said the bill would cost taxpayers $25 billion, but congressional analysts predict there is a good chance it will not be needed.
The plan creates a new regulator with tighter controls for Fannie Mae and Freddie Mac. It includes about $15 billion in housing tax breaks, including a credit of up to $7,500 for first-time buyers, and increases the statutory limit on the national debt by $800 billion, to $10.6 trillion.
Ryan's concerns, and we share them, are that the national debt is increasing again, by a large amount, and that this bill would only be a temporary fix. He said legislators have missed an opportunity for serious reform of Fannie Mae and Freddie Mac.
"Fannie and Freddie's failure could pose a significant risk to financial markets and our overall economy," Ryan said. "The only option is to support them. But it is clear: Congress must reform these entities."
Should the Senate approve the bill, it's a solid temporary solution that would bring relief to hundreds of thousands of Americans. A more permanent plan, however, needs to be researched and voted into action.
We have mixed feelings about the legislation. It helps homeowners avoid foreclosure, but it is also a bail out of large, privately-owned businesses that shouldn't need it.
Local Democratic Congresswoman Tammy Baldwin was one of 272 legislators to approve the measure.
"The mortgage crisis affects all of us," Baldwin said. "Families throughout Wisconsin have lost their homes; millions more are on the brink of foreclosure and homeowners have seen their property values plummet."
The American Housing Rescue and Foreclosure Prevention Act will allow families to refinance into lower-cost government-insured mortgages. Multiple state Democrats say this will be at no cost to American taxpayers.
Paul Ryan, a Republican who represents an area including Janesville, was one of 152 lawmakers to vote against the bill.
"My top priority is to protect the taxpayers," Ryan said. "Our current policy toward Fannie and Freddie is not only dysfunctional and rife with bad incentives, it also has potentially disastrous consequences for taxpayers."
In an editorial in Investors Business Daily, Ryan said the bill would cost taxpayers $25 billion, but congressional analysts predict there is a good chance it will not be needed.
The plan creates a new regulator with tighter controls for Fannie Mae and Freddie Mac. It includes about $15 billion in housing tax breaks, including a credit of up to $7,500 for first-time buyers, and increases the statutory limit on the national debt by $800 billion, to $10.6 trillion.
Ryan's concerns, and we share them, are that the national debt is increasing again, by a large amount, and that this bill would only be a temporary fix. He said legislators have missed an opportunity for serious reform of Fannie Mae and Freddie Mac.
"Fannie and Freddie's failure could pose a significant risk to financial markets and our overall economy," Ryan said. "The only option is to support them. But it is clear: Congress must reform these entities."
Should the Senate approve the bill, it's a solid temporary solution that would bring relief to hundreds of thousands of Americans. A more permanent plan, however, needs to be researched and voted into action.
