Idaho Congressman Mike Simpson joined House Republicans in supporting H.R. 1903, the Responsible Homeowners Act. This bill will help keep families in their homes by lowering the costs for ALL homeowners, in contrast to recently-proposed legislation that only addresses the problems of a select few. 

“We know that we must fix the housing problem in order to address the issues facing the rest of our economy,” said Simpson. “This housing plan helps ALL homeowners and it does so without rewarding those who created the problem in the first place. Helping distressed homeowners should not come at the expense of the 90% of homeowners who are paying their mortgages on time.”

Today many responsible homeowners are at risk of losing their home through no fault of their own, such as those who find themselves temporarily unemployed.  In order to keep those families in their homes, H.R. 1903 will:

·         Provide a $5,000 refinancing tax credit to help families cover the costs of a mortgage refinancing, buy down points, or reduce their principal balance (covers refinancings through July 1, 2010).

·         Encourages lenders to invest in keeping homeowners in their homes by providing tax incentives when they refinancing mortgages and lowering monthly payments in exchange for a shared portion of future home appreciation. (covers refinancings through July 1, 2010).

·         Enables mortgage services to modify mortgages to help homeowners by providing a “safe harbor” from lawsuits by investors for mortgage servicers who engage in specified loan modifications consistent with their statutory duties; and would require unsuccessful plaintiffs to pay all attorneys’ fees and any legal costs incurred by the defendant.  Right now mortgage servicers who modify loans risk being sued by one of the many investors who own a portion of the mortgage.

The key to stabilizing home prices is to get people buying homes again.  That includes the young couple who is purchasing their first home, the growing family that needs to trade-in their first home for something bigger, and the empty-nesters who are looking to downsize. To spur home purchases across-the-board, H.R. 1903 would:

·         Enact a $15,000 home-buyers credit for all purchases of primary residences provided that the buyer puts 5% down (covers purchases made before July 1, 2010).

·         Encourage neighborhood investors to purchase homes to be rented out by equalizing the tax treatment of a home purchased as a primary residence with a home purchased for rental purposes.  In areas with a high number of foreclosed homes we need individuals who are willing to invest in these homes and get them reoccupied. Unfortunately, current law only provides incentives for the purchase of owner-occupied homes. (covers purchases made before July 1, 2010).