U.S. Senator Ken Salazar Member: Finance, Agriculture, Energy, Ethics and Aging Committees 2300 15^th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510
For Immediate Release Monday, June 23, 2008		CONTACT:Stephanie Valencia – 202-228-3630 Michael Amodeo – 202-228-5019
Sen. Salazar: 'Housing Crisis Requires Immediate Attention, Action' DENVER, CO – Today, during a press conference at the site of the Colorado Foreclosure Hotline, United States Senator Ken Salazar pushed his Senate colleagues to take immediate legislative action to help keep struggling families caught in the grip of Colorado’s housing crisis from losing their homes, and to prevent the nation’s already slumping economy from veering even further off track. In his remarks, Senator Salazar pointed to an “unprecedented” 200-percent increase in Colorado home foreclosure filings, a sharp decline in home values and a staggering decrease in the number of home starts and home sales as grounds for Congress to pass The Housing and Economic Recovery Act of 2008, which is currently on the floor of the Senate. Senator Salazar also highlighted a provision which he fought to include, that will require entities receiving credit counseling funding under the bill to partner successful efforts of foreclosure counseling programs like Colorado’s Foreclosure Hotline (1-877-601-HOPE). “For too many Americans, the dream of homeownership is slipping away,” said Senator Salazar. “For families facing foreclosure, bankruptcy, or eviction, the situation is bad enough. But, as we have seen over the last several months, the foreclosure crisis is also taking a growing toll on our nation’s economy. With the legislation currently before the Senate, we have an opportunity to help millions of American families, begin to reverse the troubling trends we have seen in the housing sector, and put our nation’s economy back on a steadier footing.” The Center for Responsible Lending, a non-profit organization that works to eliminate abusive financial practices, projects that Colorado will experience nearly 50,000 additional foreclosures in 2008 and 2009, as adjustable-rate mortgages reset and as home values continue to plummet. In addition to those 50,000 foreclosures, almost 750,000 homes – approximately 35 percent of all the homes in Colorado – will suffer declines in their value for a total decline in statewide home values of $3.2 billion. Specifically, The Housing and Economic Recovery Act of 2008: Provides Help for Homeowners, Homebuyers and Homebuilders Tax Incentives to Reinvigorate Housing Market: Refundable first-time homebuyer credit of 10% of the purchase of a home (up to $8,000) for homes purchased between 4/9/08 and 4/1/09 Tax Relief for Families Facing High Property Taxes: Property tax deduction for non-itemizing taxpayers Provisions to Promote Affordable Housing Development: Increased allocation and simplification of Low-Income Housing Tax Credits (provides leverage for private investment in affordable housing) Increases the Availability of Stable Home Financing Allows Fannie Mae, Freddie Mac, and the Federal Housing Authority greater flexibility in terms of the kinds of mortgages they can purchase and insure, which will increase the availability of stable credit $11 billion increase in use of tax-exempt Mortgage Revenue Bonds (provides low-interest financing and refinancing assistance to low- and moderate-income homebuyers) Help for Families and Communities Facing Foreclosure Pre-Foreclosure Counseling Assistance for Homeowners: $150 million for credit counseling Assistance for Communities Afflicted by Foreclosure: $3.9 billion in CDBG funding for communities to purchase/rehabilitate foreclosed homes Protections Against Future Foreclosures: Stronger disclosure requirements on mortgage documents Assistance for Veterans: Targeted foreclosure prevention assistance for veterans/returning service members Takes Steps to Prevent Mortgage Fraud Creates a federal registry and establish minimum national standards for all residential mortgage brokers and lenders Since its October 2006 inception, the Colorado Foreclosure Hotline has received over 40,000 calls from concerned homeowners, including over 12,000 calls since Senator Salazar’s visit to the facility in February of this year. According to a report by the Colorado Division of Housing, at least 4 out of 5 callers to the Colorado Foreclosure Hotline who meet with housing counselors avoid foreclosure. ###