Economy

The Issue: Texas families are hurting from an economy in freefall. From foreclosures, to the falling dollar to rising fuel prices and food costs, the status quo is not working for working families.

Rick Noriega supports a real stimulus plan that extends unemployment benefits, stabilizes the housing market and protects homeowners, provides real tax rebates for Texas families, provides businesses with incentives to deal with the energy crisis, and helps the states and localities which will end up providing health care and other aid to those hit by the recession.

Rick supports putting our financial house back in order by eliminating obsolete federal programs and questionable subsidies, closing corporate loopholes, cutting special-interests earmarks, limiting no-bid contracts, and reversing tax cuts that benefit a select few.

The Noriega Record: Rep. Noriega's Foreclosure Prevention Plan

Help Struggling Families Keep their Home

Provide an increase of $200 million for spending on housing counselors to help troubled borrowers at risk of foreclosure. This funding would assist up to one half-million families to connect with their lender to explore options that will keep them in their homes, including refinancing loans into traditional fixed-rate, 30-year mortgages.

Overhaul the Federal Housing Administration to enable the agency to help more borrowers refinance their mortgages into FHA-backed loans, which typically carry lower interest rates.

Change bankruptcy law and allow judges to modify the mortgage of a debtor. This would eliminate a the current provision to the bankruptcy law which prohibits modifications to mortgage loans on the principle residence of a borrower and would help up to more than 600,000 financially troubled families keep their homes.

Provide a two-year, one time $2,000 credit towards closing costs for homeowners who refinance into a fixed-rate mortgage.

Help Communities Harmed by Growing Foreclosures and Loss of Equity

Create a foreclosure mitigation fund to allow local governments with the highest foreclosure numbers and rates to purchase foreclosed properties, rehabilitate them if necessary and rent or re-sell them.

Create a first-time homebuyer credit of up to $3,000. This credit, which would be applicable towards closing costs or a down payment would stimulate housing demand and restart the market.

Help Families Avoid Foreclosure in the Future

Amend the Truth in Lending Act to expand mortgage disclosure requirements and increase the penalties for violating them.

Create strict and uniform licensing standards for mortgage brokers to ensure that brokers are properly regulated and bad actors punished