Thursday July 18, 2013, WASHINGTON, D.C. – Congressman Robert Hurt (R-Virginia) released the below statement following the Financial Services Committee hearing examining the Protecting American Taxpayers And Homeowners Act, a legislative proposal to create a sustainable housing system:
"The Financial Services Committee has held a series of hearings over the last six months examining how the actions taken by Fannie Mae and Freddie Mac over many years contributed to the financial crisis in 2008, caused boom-bust cycles in the housing market, and forced American taxpayers to bail out the GSE's at a cost of nearly $200 billion. At a time when the federal government supports 90 percent of new mortgage originations and remains on the hook for $5.1 trillion in mortgage guarantees, it could not be clearer that our system is broken, unsustainable, and in need of serious reform.
"That is why House Republicans have introduced the Protecting American Taxpayers And Homeowners (PATH) Act, a plan designed to protect homeowners and taxpayers. This legislation ends the taxpayer-funded bailouts of Fannie Mae and Freddie Mac to ensure that hardworking taxpayers never again have to foot the bill for the federal government's mistakes in housing finance. It will protect and refocus the Federal Housing Administration by clearly defining its mission to serve first-time and low to moderate income borrowers. Additionally, this plan will free America's housing markets from government distortion by implementing reforms to increase competition, enhance transparency, and maximize consumer choice. Finally, the PATH Act institutes reforms to ensure that community financial institutions, realtors, home builders, and others are not negatively affected by some of the most harmful provisions in Dodd-Frank.
"I thank Chairman Hensarling for his leadership on this important issue, and I look forward to working with our colleagues to fundamentally reform our nation's housing finance system to increase private investment and protect American homeowners and taxpayers."