U.S. Rep. Frank LoBiondo (R-2nd)

WASHINGTON, D.C. – Convinced that responsible home owners will be unfairly penalized for the actions of irresponsible borrowers, U.S. Rep. Frank A. LoBiondo (R-2nd) On July 23 voted against H.R. 3221, the “American Housing Rescue and Foreclosure Prevention Act of 2008,” which would, according toa a release, “place taxpayers on the hook for up to $300 billion to bail-out reckless borrowers. The legislation also carries a potential $5 trillion taxpayer-funded future bail-out for Fannie Mae and Freddie Mac.”

LoBiondo previously voted against the House-passed housing bailout in May.

“U.S. taxpayers should not have to bear the responsibility for those who recklessly lend and irresponsibly borrow beyond their means,” blasted LoBiondo. “We should also not be giving the Treasury Secretary a blank check of taxpayer dollars to purchase stock in the markets.”

Under H.R. 3221, taxpayers would be responsible for up to $300 billion in bad loans from irresponsible borrowers, lenders and speculators.

The bill also authorizes the Secretary of the Treasury to purchase stock in Fannie and Freddie with the intention to provide capital and stability in the housing market. This stock purchase via a “blank check” would, however, leave taxpayers responsible for up to $5 trillion – or the value of all mortgages currently insured by Fannie & Freddie - should the government-sponsored corporations fail.

“While I support increasing educational initiatives, financial counseling, public-private partnerships and some tax incentives for individuals who seek the American dream of owning a home, it must not come at the bankruptcy of our nation. With the passage of this bill, taxpayers could be required to bailout a current Member of Congress who recklessly spent beyond her financial means – to me, that is when government intervention has gone too far,” LoBiondo stated.