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On behalf of over one million FreedomWorks members nationwide, I urge you to vote YES on H.R. 830 the Federal Housing Assistance (FHA) Program Termination Act. Introduced by Rep. Robert Dold (R-IL), the bill would eliminate the inefficient FHA Refinance Program to save taxpayers $8 billion. It is urgent that we reduce the federal government’s involvement in the housing market.
The FHA Refinance Program which is authorized under the Troubled Assets Relief Program (TARP) refinances underwater loans to the FHA. The Committee on Financial Services confirms that the program enables lenders to transfer their mortgage risks onto taxpayers. This creates a moral hazard in the housing market. Lenders are more willing to make risky loans if they can shift any losses to taxpayers.
The Obama administration originally estimated that the program would help between 500,000 and 1.5 million homeowners. Yet, only 245 applications have been submitted in over a year. This is just another example of the Obama administration funneling TARP dollars to wasteful projects. With the U.S. facing record deficits, we cannot afford to pay for programs that do not work. Without action by Congress, the FHA Refinance Program will continue until December 31, 2012. Taxpayers deserve better.
We will count your vote on H.R. 830 the Federal Housing Assistance Program Termination Act as a KEY VOTE when calculating the FreedomWorks Economic Freedom Scorecard for 2011. The Economic Freedom Scorecard is used to determine eligibility for the Jefferson Award, which recognizes members of Congress with voting records that support economic freedom.
President and CEO
[Click here for a pdf version of this letter.]