Neugebauer Says PATH Act Helps Homeowners and Taxpayers

Jul 15, 2013 Issues: Financial Services

WASHINGTON, DC—Congressman Randy Neugebauer (R-TX) spoke about the Protecting American Taxpayers and Homeowners (PATH) Act with Tom Collins and Sondra Ziegler today on KFYO’s Lubbock First News


The PATH Act reforms our housing finance market, making it more sustainable for homeowners, taxpayers, and investors.  You can listen to the interview here.  Selected quotes follow:


“This is a comprehensive bill to reform housing finance in this country.  What happened after 2008 is basically, we nationalized the housing finance market.  And so today, nine out of every ten mortgages that are originated in this country are guaranteed by the taxpayers.”


“What the PATH Act does is try to bring the FHA back to its traditional role of [supporting] first-time homebuyers and low-to-moderate income buyers and begins to move Freddie and Fannie from conservatorship to receivership over the next five years, which will phase them out.  This should then create some space for the private market to come back in to the housing finance market.”


“What we want is sustainable housing in this country… As you saw in these housing crisis was that we had a number of people who were allowed to buy houses who shouldn’t have and it increased the prices of houses and these people were not able to make the mortgage payments and the prices in many subdivisions across the country dropped dramatically hurting those people who were doing it the right way and so in many ways, and I have said this a number of times, what happens is we put two people working hard, making their own mortgage payments, not only having to make their own mortgage payments, but making their neighbors mortgage payment.”