Washington, D.C. – Today, Congressman Kevin Brady (R-Woodlands) spoke on the floor against the current version of H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008. 

Essentially this bill creates a new mortgage guarantee program that would allow borrowers who owe more than their homes are now worth, to refinance their mortgages after the lender agrees to reduce the existing loan principal. This amounts to a taxpayer funded gift for those who made risky investments, and a bailout for lenders who ignored sound financial principles. 

Congressman Brady is outraged that the state line between Texas and Louisiana is the bill’s cutoff for hurricane recovery aid when we all know now that Hurricane Rita was more powerful than Hurricane Katrina. Mr. Brady spoke about this blatant discrimination on the House floor today.

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“This bill gives $500 million in hurricane recovery assistance to Louisiana and Mississippi, and leaves Texas out in the cold with nothing,” said Brady. “What this Congress- this democratic bill- is saying to Texans is ‘you opened your homes to Katrina victims but we’re going to divide this along state lines,’ they are telling Texas to drop dead.”

From his seat on the House Ways & Means Committee, Congressman Brady has fought to prevent injustice on behalf of American taxpayers.