8.03.2008

Ellen Tauscher - Congress Gone Wild

I wrote this email to my local congresswoman on July 9th. CLICK HERE

I recieved a response on August 1 which I have printed below. The original email was regarding the Bear Stearns bailout and I asked her about the FED's ability to tax without the sign off of congress. I asked who controls the FED if, as she stated before, Congress does not so as to keep the FED apolitical. Her response, while completely ignoring my questions, indicates what is really wrong with our government and with our economic situation today. She certainly does not represent me. She representes the crooks, the liars and the frauds.

I bolded some of my favorite lines of her response below.

Dear [Negocios Loucos]:

Thank you for writing to me about the need for Congressional action to help Americans secure solid mortgages and to keep their homes. Across the nation, roughly 8,000 families are being foreclosed on every day, and I believe that Congress has an opportunity to help prevent these losses. I welcome this opportunity to share my work to help home owners and buyers.

An important part of helping Americans buy and keep homes is providing access to safe and affordable financing. As you may know, Congress passed an economic stimulus package this year that raised the conforming loan limit for government-sponsored enterprises Fannie Mae and Freddie Mac and also increased the Federal Housing Administration's (FHA) authority to insure mortgages in high-cost areas. Higher limits are essential for homebuyers and refinancing homeowners in regions like the Bay Area where prices are well above national averages. However, these increases are set to expire at the end of this year. For this reason, I led 44 members of the California delegation in urging Congressional leadership to help homeowners in high costs areas by making the higher loan limits permanent.

More recently, the House of Representatives passed the Foreclosure Prevention Act of 2008 (H.R. 3221), which will allow the FHA to extend loan guarantees to at-risk borrowers so they can refinance into viable mortgages. In exchange for accepting a substantial write-down of the home's fair market value, the existing lender would receive a payment from the proceeds of the new FHA loan. This would allow lenders to recoup more of their investment than they would through foreclosure proceedings, and it prevents more properties from going into foreclosure.

In addition to helping homeowners, the Foreclosure Prevention Act lends a hand to first-time buyers. While I was disappointed that passing the bill required the House to accept a Senate provision to limit down payment assistance, this bill provides tax credits for first-time homebuyers to ensure that the pool of homeowners continues to grow. The bill expands homeownership opportunities for veterans, as well, and it helps returning soldiers avoid foreclosure and stay in their homes. H.R. 3221 also creates a new fund to boost the nation's stock of affordable rental housing in both rural and urban areas. Finally, the bill includes an overhaul of the regulations governing Fannie Mae and Freddie Mac, so that we can ensure these loan guarantors remain solvent and reliable.

Earlier this year I supported H.R. 1852, the Expanding American Homeownership Act of 2007, which would establish a national housing trust fund to finance borrower counseling and other affordable housing initiatives. Independent counseling has helped millions of Americans create plans to keep their homes, and access must be expanded. I am committed to giving first-time homebuyers and new homeowners the resources they need to find a mortgage they can afford so that they can stay in their homes without the fear of foreclosure.

Unfortunately, many homeowners have been foreclosed on already, and neighborhoods are suffering from the blight of empty houses. Because state and local governments have first-hand knowledge of the needs of local communities, I believe that the federal government should make available loans and grants for the purchase and rehabilitation of foreclosed homes, with the goal of renting or reselling to families in need as soon as possible. H.R. 3221 will provide just this kind of assistance to communities around the country.

I believe that responsible federal assistance will be critical in keeping Americans in their homes and our economy out of crisis. I look forward to working with my colleagues in both chambers to send legislation to the President that will protect our communities and prevent home foreclosures, and in that process, I will be sure to keep your comments in mind.
Correspondence from constituents like you is essential to my work in Congress, and I hope that you will continue to inform me of your concerns. If you're a homeowner or are considering buying a home and you have questions or could use guidance, please visit the
Resources for Homeowners portion of my website to find helpful resources. If I can be of further assistance, please feel free to contact my office at 925-932-8899 or 202-225-1880.



Sincerely,Ellen O. TauscherMember of Congress

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Milestones

I talk a lot about inflation. But today was the first time in my life I actually used a dollar bill as toilet paper.