ProgressOhio

Schmidt, Chabot Stood With President Bush Who is All for Huge Federal Bailouts of Bear Sterns and Other Wall Street Financiers but Opposes Assistance to Struggling Families Losing Their Homes

As the economy continues to slip further and further into recession and thousands of Ohio families face the prospect of losing their homes under the subprime mortgage crisis, Americans United for Change blasted Reps. Jean Schmidt and Steve Chabot for voting against the American Housing Rescue and Foreclosure Prevention Act – comprehensive and meaningful legislation to help families facing foreclosure keep their homes, help other families avoid foreclosures in the future, and help the recovery of communities harmed by empty homes caught in the foreclosure process.

The heart of the housing market stabilization legislation passed Thursday with broad bipartisan support in the U.S. House of Representatives, despite a veto threat from President Bush.  According to the Pew Center on the States, between 7,000 and 8,000 people a day are filing for foreclosure on their homes.  One in 33 homeowners is projected to be in foreclosure over the next two years, as a result of subprime loans made in 2005 and 2006.

“8,000 Americans from all walks of life will lose their homes today under this subprime mortgage crisis.  Tomorrow, another 8,000 will plant a foreclosure sign in their yard - and another 8,000 the day after that,” said Jeremy Funk, spokesman for Americans United for Change. “But President Bush and his allies in Congress like Jean Schmidt and Steve Chabot believe the government has no business getting involved.  Thankfully the Democratic leadership in Congress sees things differently and passed meaningful legislation that provides a life preserver to struggling families drowning in mortgage debt -- which will in turn help stabilize the ailing economy for everyone.”

“Fresh on the heels of a $30 billion bailout this Administration supported for Bear Stearns and other Wall Street financiers, it takes a lot of nerve for President Bush to now threaten to stand in the way of help for so many American families on the verge of losing their homes under a mortgage crisis that his own Administration’s inaction and incompetence exacerbated.  And now struggling Ohio families and communities caught up in this mess know exactly where Reps. Jean Schmidt and Steve Chabot stand.”