Lynch Votes Against Bill to End the Affordable 30-Year Mortgage

Jul 24, 2013

Today, Congressman Stephen F. Lynch (MA-08) issued the following statement after voting against H.R. 2767, the so-called Protecting American Taxpayers and Homeowners (PATH) Act, a Republican bill to privatize the mortgage finance market:

“I am extremely disappointed that my Republican colleagues have insisted on going forward with an extreme bill that would damage our housing finance system. The PATH Act would end the affordable 30-year fixed rate mortgage as we know it, putting homeownership out of reach for many hardworking Americans. The bill turns the housing market over to the biggest Wall Street banks that fueled the housing bubble and accelerated the financial crisis, and it makes it very difficult for small banks and credit unions to provide mortgages to their communities.

Every Member of the Financial Services Committee agrees that we must wind down the government mortgage giants Fannie Mae and Freddie Mac and reform America’s housing finance system. The PATH Act is nothing more than a dangerous ideological experiment that will devastate the availability of mortgage credit to middle class homebuyers.

The most disappointing aspect of today’s vote is that we are missing an opportunity to achieve consensus and do something good for the American taxpayer. There is broad bipartisan agreement among industry professionals, consumer advocates, and academics about the general framework of responsible housing finance reform, one that preserves a limited government role. We should be moving forward, as some of our colleagues in the Senate are, to craft a solution that can be supported by both Republicans and Democrats. This bill takes us in the exact opposite direction, and that is why I voted against it.”