U.S. House Votes to Cancel Emergency Homeowner Loan Program for Unemployed
The U.S. House voted 242-177 to cancel a loan program for homeowners who have lost their jobs as Republicans move to eliminate funding for President Barack Obama’s anti-foreclosure efforts.
Today’s vote to end the Emergency Homeowner Loan Program was the second of four planned by House lawmakers, who approved a bill yesterday to end the Federal Housing Administration Short Refi Option for people who owe more than their homes are worth.
The $1 billion emergency loan program, which provides interest-free money to help borrowers keep their houses, was funded by a Democrat-led Congress before Republicans took control of the House. Because it is still in the design phase, no money has been spent on it.
“This is about programs that aren’t working,” said Representative Shelley Moore Capito, a West Virginia Republican, before today’s vote. “This is a good-sense cut.”
Representative Melvin Watt, a North Carolina Democrat, said the Republican measure is “mean-spirited.”
“These are working people who had jobs, fell on hard times,” Watt said. “All we’re saying is give them a break for 12 months and an opportunity to go back into the marketplace and find a job.”
The House is scheduled to vote next week on a bill that would eliminate Obama’s Home Affordable Modification Program, which pays banks to modify borrowers monthly mortgage payments.
To become law, the bills must clear the Democrat-controlled Senate and be signed by the president.
To contact the reporter on this story: Lorraine Woellert in Washington at lwoellert@bloomberg.net.
To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net.
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