Sherman Fights for Government Guaranteed Mortgages

WASHINGTON, DC – Congressman Brad Sherman (D-CA) made the following statement after a House Financial Services Committee markup on the Protecting American Taxpayers and Homeowners Act. To watch a video of his full remarks, click here.

“Yesterday I participated in a House Financial Services Committee markup on legislation intended to reform our country’s housing finance system. Unfortunately the legislation under scrutiny—the Protecting American Taxpayers and Homeowners (PATH) Act—would in fact hurt taxpayers and homeowners and significantly threaten our nation’s economic recovery.

“The PATH Act would end the affordable 30-year fixed rate mortgage for four-fifths of all home buyers, leaving many Californians with higher cost mortgages and causing housing prices to plummet as a result. The legislation would also hurt community banks and credit unions, limit the supply of rental housing, and put taxpayers at undue risk.

“During consideration of the PATH Act, I offered an amendment to prevent reduction of conforming mortgage loan limits for high-cost areas like the San Fernando Valley. Unfortunately the amendment did not pass. Despite resistance from my colleagues, please be assured I will continue to fight to protect Valley homeowners, our housing market, and our economy. As I mentioned at yesterday’s markup, no one is defending the status quo, but that doesn’t mean we should go back to the dangerous policies of the 1930s.”