Congressman Canseco warns against potential FHA taxpayer bailout with most recent vote

FOR IMMEDIATE RELEASE
November 18th, 2011

Contact:  Valentina Weis
(202) 225-4511 or Valentina.Weis@mail.house.gov


Congressman Canseco warns against potential FHA taxpayer bailout with most recent vote

Washington, DC – Congressman Francisco “Quico” Canseco (TX-23), a member of the House Financial Services Committee, issued the following statement after voting against the conference report for H.R. 2112, the so-called “minibus” appropriation bill:

“I was unable to support the conference report because of its inclusion of a provision pushing back up the size of a home loan that the Federal Housing Administration (FHA) is able to guarantee from $625,000 back up to $729,750. We just learned this week from an independent audit that there is a ‘close to 50 percent’ chance that FHA will require a taxpayer bailout in the next year, and given that FHA has a dangerous capital ratio of 0.24% that leaves little room for error. I don’t really see how much more clear the threat posed by FHA to our nation’s economy and taxpayers can be. We have no business, given the fiscal shape of our nation and FHA, allowing taxpayers to subsidize housing for Americans that can afford a home loan in excess of $650,000,” said Congressman Canseco. “American taxpayers have already bailed out Fannie Mae and Freddie Mac to the tune of almost $200 billion and counting, and at a time of record deficits and debt, American taxpayers shouldn’t be forced to continue bailing out the failed housing policies of the Obama Administration. Owning a home is a goal shared by millions, and we should pursue policies that allow Americans the opportunity to own a home. However, simply continuing to throw taxpayer money at failed housing policies will not accomplish this goal; getting our economy back on track and creating jobs will.”

“However, there were a number of things about the conference report to like, such as the provision placing restrictions on the implementation of a proposed rule by the Grain Inspection and Packers and Stockyards Administration (GIPSA) that would have needlessly restricted the ability of livestock and poultry producers to sell their animals, and provisions that upheld 2nd Amendment rights. But the amount of good policies contained within the bill was not enough to outweigh the awful policy of allowing taxpayers to be on the hook yet again for failed housing policies,” concluded Congressman Canseco.

To schedule an interview please contact Valentina Weis at (202) 225-4511 or Valentina.Weis@mail.house.gov

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