Pelosi Statement on Federal Housing Finance Reform Act

Washington, DC--Speaker Nancy Pelosi released the following statement this evening on H.R. 1427, the Federal Housing Finance Reform Act, which is being debated in the House tonight:

'Tonight, with the Federal Housing Finance Reform Act, the House is taking crucial steps toward addressing our nation's need for affordable housing and restoring accountability that has been missing for too long.

'The recent scandals at the Fannie Mae and Freddie Mac mortgage-funding enterprises are clear evidence of the need for a change in how business is done in Washington.  This legislation will restore accountability while addressing management and accounting problems that have undermined the mission of these government-sponsored enterprises - to expand access to housing for the American people.

'The bill also establishes a new Affordable Housing Fund to dedicate about $450 million per year for five years to promote housing for low-income homeowners and renters.  Revenues for the fund will come from Fannie Mae and Freddie Mac, not American taxpayers.  Grants will be distributed around the country through states and tribes for preserving and building affordable housing.

'Recognizing the dire need for housing in the Gulf Coast areas devastated by Hurricanes Katrina and Rita, the entire Affordable Housing Fund will be dedicated to Louisiana and Mississippi in the first year.  Nearly two years after those terrible storms, thousands of Gulf Coast residents are living in trailers, cramped into shared housing, or living in other parts of the country.  It is long past time we provide them with the housing they need to rebuild their lives and their communities.'