Dear Friend,

Homes are pillars of strength for our families, communities, and economy. They are the places we raise our children, put our feet up after a hard day’s work, and enjoy holidays with our families. Owning a home is the American Dream for many, but the recent downturn in the subprime mortgage loan market, which provides loans to riskier borrowers, has left thousands of American families at risk of losing their homes and dreams. 

To address this growing crisis, earlier this week the House considered a bill to modernize the Federal Housing Administration (FHA), which provides a reliable source of affordable mortgage loans to first-time homebuyers. The Expanding American Homeownership Act empowers the FHA to serve more families and offer more refinancing options to homeowners who need assistance meeting their mortgage payments.

An estimated 2 million Americans will see increases in their mortgage payments over the next two years as adjustable-rate mortgages increase. At a time when Hoosiers are already struggling to cover outrageous property taxes, and skyrocketing energy and health care costs, increased mortgage payments are putting homeowners at risk for foreclosure and/or bankruptcy. This bill provides some relief by offering more options to homeowners looking to refinance their existing mortgages.

The bill also cracks down on the predatory lenders many have turned to in recent years. It doubles the resources available to provide borrowers with mortgage counseling, and requires counseling for higher risk FHA borrowers before purchasing their homes. These changes are important to ensure a similar mortgage loan crisis that puts American families at risk of losing their homes does not happen again.

I was proud to support this important piece of legislation for America’s homeowners and their families. I will continue to look for commonsense ways to promote homeownership and protect American families from losing their homes.

Sincerely,

Brad Ellsworth