John Drake: “housing is a very complex issue. We are talking about a person's home, real people with a real problem. Prior to…”

“housing is a very complex issue. We are talking about a person's home, real people with a real problem. Prior to Congress I was a realtor for over 20 years. I have worked with many families to help them realize their dream of homeownership. I have served as chairman of the Virginia Housing Study Commission. I have seen good markets and bad and many changes to the mortgage industry. I have struggled with how to define and protect against predatory lending practices. I have seen interest rates and loan products that seem too good to be true. Unfortunately, we have seen they were too good to be true. There are many components of this bill, which I think are excellent. Enacting those reforms now would have a huge impact on the housing market and be helpful to American families. My concerns with today's package include the establishment of a new, affordable housing fund and a $300 billion Federal loan guarantee program. A lender with troubled loans could contact those homeowners, offer a federally backed loan and refinance at a loss. But now he has moved that loan from a complete loss to 85 percent current value that will be guaranteed by the Federal Government. He now has no reason to work with that borrower. Neighbor A bought at the height of the market. He struggles but pays. Neighbor B negotiates 85 percent of current value, a huge impact on the value of surrounding properties. This is a voluntary program.…”