Gregg, Sununu split on Senate housing bill

U.S. Senators Judd Gregg (R-Rye) and John Sununu (R-Waterville Valley) split over supporting a Senate bill aimed at easing home foreclosures.

The Senate passed the Foreclosure Prevention Act of 2008 by a vote of 84-12. The Act seeks to modernize the Federal Housing Administration, offer mortgage revenue bonds and offer pre-foreclosure counseling.

Gregg opposed the bill and Sununu voted in favor of the bill.

Gregg, ranking member of the Senate Budget Committee, said the bill contained "some good provisions," but he opposed the bill because it would not "truly address the underlying issue of the economic slowdown."

"Unfortunately, the bill does more harm than good by creating billions in debt for ineffective programs like Community Development Block Grants and special interest handouts that do little to address our economic woes.  In fact, the biggest item in the bill is an $18 billion giveaway for the homebuilding industry at the expense of the American taxpayer.  Rewarding this industry with a tax break for overbuilding and speculation will not solve our current housing problems and puts taxpayers on the hook for poor business decisions," Gregg said.

Sununu, a member of the Senate Finance Committee, beliefs the bill will stabilize the housing market.

"Taxpayers shouldn't bail out investors or speculators who should have known they were making risky bets. But, it is in everyone's interest to bring stability to the housing market and avoid a widespread meltdown in the economy. This bill moves us in that direction with several provisions that will positively impact homeownership in New Hampshire and across the nation," Sununu said.

"In modernizing the FHA, we can ensure that it provides better mortgage options for low-income and first-time homebuyers as well as affordable refinancing options for those who already own homes. The tax credit for buyers of foreclosed properties will help reduce the inventory of unsold homes and stabilize home prices," Sununu added.