2008-05-21 23:35:41 -

www.freedomworks.org - FreedomWorks Allan Page, 919-807-0100 apage@freedomworks.org So-called fiscal conservatives from both sides of the aisle representing North Carolina voted for Massachusetts liberal, Rep. Barney Frank's housing bailout legislation, H.R. 3221, which allows banks to cherry-pick the worst performing loans in their portfolio and shift them 100 percent to U.S. taxpayers. The legislation was exempted

from "pay-as-you-go" budget rules and includes no provision for taxpayer losses, which could easily exceed $100 billion if housing prices continue to fall.

Though they claim the mantle of fiscal responsibility, Republicans Robin Hayes (R-8) and Walter Jones (R-3) and Blue-Dog Democrats Heath Shuler (D-11) and Mike McIntyre (D-7) voted for the fiscally irresponsible new $300 billion housing welfare program.

Homeowners with vacation homes or multiple investment properties are also eligible for loans on their primary residence. There is also no requirement that the welfare recipient even make one timely payment on their existing mortgages. Under FHA rules, non-US citizens are also eligible for these new taxpayer loans.

The median home price in North Carolina is just $137,200, yet H.R. 3221 would subsidize taxpayer guarantee loans of over $729,000. Few in North Carolina would even qualify for an FHA loan of this size. Instead, the bill is largely a direct transfer of money from North Carolina taxpayers to housing speculators in California, Nevada, and Florida and to their bankers on Wall Street.

FreedomWorks Southeast Regional Director Allen Page commented:

"We often hear members of Congress promise to restore fiscal responsibility in Washington. Our grassroots activists are disappointed that Representatives Robin Hayes, Walter Jones, Heath Shuler, and Mike McIntyre voted to bail out irresponsible borrowers and lenders with taxpayer money. Hardworking North Carolinians should not be forced to bail out housing speculators in California and Florida."

¶ Budget-Busting Plan Includes $729,000 Government Loans to Non-US
Citizens