Washington, DC – Congressman Robert Hurt (R-Virginia) released the following statement after a hearing held by the Financial Services Committee to focus on the $1.7 billion taxpayer-funded bailout of the Federal Housing Administration (FHA):
"Today's hearing marks the seventh this year on the topic of the FHA and its worsening financial stability. Over the course of the past year, we have heard witnesses testify that FHA has disregarded warnings that its fiscal stability was waning due to poor choices regarding insurance pricing. Today's hearing, which focused on its recently announced $1.7 billion bailout, was further proof of the FHA's failed housing policies.
"Hardworking American taxpayers should not be stuck with a $1.7 billion bill to bailout the FHA, nor should they be expected to foot the $200 billion bill to bailout Fannie Mae and Freddie Mac. We need a sustainable housing finance system that benefits both homeowners and taxpayers. That is why my colleagues in the House and I introduced the Protecting American Taxpayers and Homeowners (PATH) Act, which has been adopted by the Financial Services Committee. This bill would restore FHA's fiscal stability and focus its mission on helping first-time homebuyers and low-to-moderate income buyers, end the bailouts of Fannie Mae and Freddie Mac, and get private capital invested in our housing finance system again.
"Today's hearing brought us one step closer to FHA reform. I look forward to continuing to work with my colleagues to move the PATH Act forward and put in place policies that will benefit American taxpayers and homeowners."
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