Congressman McCaul Votes to Help Homeowners Avoid Foreclosure

May 19, 2009
Press Release

AUSTIN – Congressman Michael McCaul (R-TX 10) voted to ease the burden on Americans facing foreclosure by making it easier for them to refinance their loans before they go into default.

Unlike a similar House bill that Congressman McCaul voted against in March, S.896, the Helping Families Save Their Homes Act of 2009, excludes the practice known as "cramdown", which would have allowed judges to lower the total amount of a loan, the payments and the interest that a borrower must pay a creditor. This provision would raise interest rates and limit the availability of credit.

"For the millions of Americans who face losing their homes to no fault of their own, this is a life preserver," said Rep. McCaul. "This legislation strikes the right balance of keeping families in their homes, while ensuring homeowners can fulfill their entire financial obligation."

S.896 also permanently increases to $250,000 the amount of money in individual savings accounts insured by the Federal Deposit Insurance Corporation (FDIC). Congress voted earlier this year to increase the insured limit to $250,000, but only for FY’09.

The bill also requires an audit of the Federal Reserve, which would give the public clear insight as to how taxpayer dollars – especially those authorized in the Wall Street bailout – are spent. Congressman McCaul is a co-sponsor of H.R. 1207, which also calls for a Federal Reserve audit.