Richardson Votes for Housing Aid

By John Canalis

LONG BEACH – Rep. Laura Richardson, D-Long Beach, joined the House majority this week in voting for the American Housing Rescue and Foreclosure Prevention Act.

The bill, HR 3221, seeks up to $100 billion to protect homeowners on the brink of losing their homes, reform lending practices, make refinancing easier and bail out financial markets.

Richardson lost her Sacramento home to foreclosure but won it back when her lender, Washington Mutual, rescinded the sale to another party, who had purchased it at auction.

Because Richardson’s home was returned to her, the bill, if it were to become law, would not directly affect her.

“HR 3221 is a welcome sign of relief to a minimum projection of over 400,000 Americans – whether it is a death in the family, illness, loss of employment, skyrocketing costs, or simply escalating interest rates – who now have an opportunity to keep their homes, make payments and not displace their families,” Richardson said in a prepared statement. “H.R. 3221 not only helps American borrowers, but additional provisions were included to stabilize the housing financial market and create an independent regulator who can effectively respond to issues affecting the safe operation of these enterprises.”

The bill glided through the House on Wednesday with a 272-152 vote led by Democrats but with plenty of bipartisan support.

Other area representatives who supported it include Linda Sanchez, D-Lakewood, and Rep. Grace Napolitano, D-Norwalk.

“The mortgage crisis impacts families in my district and families everywhere,” Sanchez said via e-mail. “Families have lost their homes, millions more are on the brink of foreclosure, and homeowners have seen their property values plummet. The bill I supported will help homeowners keep their homes and get our economy back on track.”

Coastal Long Beach-area Rep. Dana Rohrabacher, R-Huntington Beach, opposed the act.

One of the main goals of HR 3221 is to help homeowners in over their heads avoid foreclosure. The law includes provisions to help ailing financial markets and sets aside funds to rescue Fannie Mae and Freddie Mac, which back more than half of mortgages nationwide.

The rescue plan could cost taxpayers up to $100 billion, according to Cox News Service.

Though conservatives largely opposed the measure, President Bush has said he will not veto it.

The Senate could take up its version of the bill today.

john.canalis@presstelegram.com, 562-499-1273

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