U.S. Rep. Bill Foster, D-Naperville, issued the following news release:
Congressman Bill Foster introduced an amendment to the PATH Act, Republican legislation that would radically remake housing finance policy leading to fewer opportunities for home ownership for middle class families.
The PATH Act would essentially end the affordable 30-year fixed rate mortgage by removing government backed guarantees. The 30-year fixed rate mortgage is good for consumers but investors are unlikely to offer such long-term financing at an affordable price without a government guarantee. Because of this, the PATH Act is strongly opposed by business groups such as the National Association of Realtors and the National Association of Home Builders.
Foster’s amendment would introduce accountability to the PATH Act to protect affordable mortgage rates for the middle class which allow working families to realize the dream of home ownership. This amendment would ensure that lenders and borrowers continue to have access to an affordable, 30-year fixed mortgage rate.
Video of Congressman Foster introducing the amendment is available at https://www.youtube.com/watch?v=9oz2bHmxbak.
“The so-called PATH Act introduced today by House Republicans is a path to disaster for middle class families and a path down the same road that created the worst recession since the Great Depression,” said Foster. “The 30-year mortgage is what makes the American Dream a reality for millions of working middle class families. The PATH Act would essentially end the affordable 30-year fixed rate mortgage, putting that dream out of reach for millions of working families.”
Foster also co-authored an amendment to restore the set aside funding for low-income rental housing. The amendment would support the National Housing Trust Fund and the Capital Magnet Fund, which are needed to significantly increase the supply of affordable rental housing and other community economic development investments serving low-income people and improving low-income communities.