This is a response from our Nevada Senator John Ensign updating us on the Federal Housing Reform and Stimulus Bill, H.R. 3221. I thought you might find this helpful, interesting and hopefully informative. You can also visit Senator Ensign’s web site at http://ensign.senate.gov. for additional information and updates. As you can see, not only are the Las Vegas and Summerlin real estate foreclosure concerns being addressed but our representatives are assessable and responsive to your comments.
June 11, 2008
Mr. Joe Laliberte
Prudential Americana Grp
Dear Mr. Laliberte:
Thank you for contacting me about subprime loans, predatory lending practices, and the current housing crisis. I value the opinions of every Nevadan and am always grateful for those who take the time to inform me of their views.
The housing market in Nevada has experienced significant turmoil in recent months. Housing sales are sluggish, home prices have fallen, and new home construction has slowed. The increasing rate of foreclosures occurring in our state is also of great concern. Indeed, in the first quarter, Nevada posted the worst foreclosure rate in the nation at nearly four times the national rate. These foreclosures are a result of the real estate bubble bursting after years of skyrocketing home values. Contributing factors to the unusual spike in foreclosures include lax lending practices; aggressive real estate speculation; the increasing use of exotic loans; unwarranted faith that home prices would continue to rise; and, in some cases, financial misrepresentation and fraud among borrowers and lenders. My colleagues and I have considered several different measures to address the depressed housing market.
You will be pleased to know that I have been successful in working with the leaders of both parties to help the Senate pass a bipartisan housing reform and stimulus bill, H.R. 3221. Among the many provisions aimed at bolstering the ailing housing market, this bill includes a $7000 tax credit for buyers who purchase homes in foreclosure. The high number of recent foreclosures has created a glut of homes available on the housing market, dragging down all home prices. The tax credit should encourage potential homebuyers to purchase this excess housing inventory which will help stabilize falling home values.
H.R. 3221 also includes consumer counseling assistance which will help distressed homeowners who are currently struggling to meet their financial commitments. Consumer counseling will enable borrowers to work with their lenders in hopes of finding positive solutions that will keep them in their homes. Another provision in the bill will simplify mortgage disclosure forms so that future buyers have a better understanding of the mortgage terms they are agreeing to when purchasing a home. Because the housing crisis affects each community differently, this bill also provides additional financial resources to states and municipalities so they can take further steps to stabilize their local markets.
You should know that the bipartisan Senate housing bill has been sent to the House of Representatives, where it awaits action. It is my hope that the House can act as quickly as the Senate and pass this bill without delay. Partisan politics and special interests should not stand in the way of providing struggling Americans with the housing relief they need.
The Administration has assembled a private-sector group called HOPE NOW, which has developed a plan that could assist over one million subprime borrowers feeling financial stress under adjustable rate loans. The HOPE NOW program is designed to help homeowners who can afford the current starter rate on a subprime loan but not the higher payments once their interest rate goes up. This effort, which involves no government funds, will freeze interest rates for eligible borrowers and create a streamlined process by which struggling homeowners can work with their mortgage holders to avoid foreclosure. This program has successfully assisted over 500,000 homeowners to stay in their homes.
Thank you again for sharing your thoughts with me. Please know that as the Senate continues to deal with the housing crisis, I will be sure to keep your thoughts in mind as we examine whether or not further legislative action is required. Feel free to contact me in the future on matters of importance to you. Should you have any other questions or comments or would like to sign up for my newsletter, please do not hesitate to either write or e-mail me via my website at http://ensign.senate.gov.
Sincerely,
JOHN ENSIGN
United States Senator
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If you have any questions or wish any additional information just call or email me.
Joe Laliberte
702-499-1747
Posted by Joe Laliberte 
Las Vegas & Summerlin Real Estate 