May 9 , 2008

Congressman Steve Kagen Holds Press Conference at NeighborWorks Green Bay to Promote Credit Counseling and Mortgage Assistance Legislation

(L-R) US Representative Steve Kagen, Eileen Hermus-Gossen of the Financial Information and Service Center, and Jennifer Schnabel-Younger of NeighborWorks Green Bay

Congressman Steve Kagen (WI) recently toured the NeighborWorks Green Bay offices and HomeOwnership Center, and held a press conference on credit counseling and mortgage assistance.  Congressman Kagen emphasized his support of The American Housing Rescue and Foreclosure Prevention Act and the Neighborhood Stabilization Act.

The American Housing Rescue and Foreclosure Prevention Act would establish new reforms in federal agencies such as Fannie Mae and Freddie Mac which dominate the secondary mortgage market. It would also establish a new program, under which the Federal Housing Administration would guarantee refinanced loans for at-risk mortgages.

This legislation would also provide first-time homebuyers a refundable tax credit that acts as an interest-free loan of up to $7,500 to be paid back over 15 years. It would supply states with additional tax-exempt bond authority in 2008 to refinance sub-prime loans and offer taxpayers that claim the standard deduction with up to an additional $700 standard deduction for property taxes.

The Neighborhood Stabilization Act would establish a Department of Housing and Urban Development administered loan and grant program for the purchase and rehabilitation of vacant, foreclosed homes with the goal of occupying them as soon as possible.

"Green Bay NeighborWorks is really excited about the passage of this bill," said Jennifer Schnabel of NeighborWorks. "It will provide funding to allow us to offer counseling to households in crisis."