WASHINGTON—Representative Todd Tiahrt (R-Goddard) today voted to reject a bailout bill for fraudulent lenders and irresponsible borrowers that would cost taxpayers a whopping $300 billion. H.R. 3221 also includes provisions to increase the national debt limit to $10.6 trillion, creates a new lender for Fannie Mae and Freddie Mac, and overhauls the Federal Housing Administration’s (FHA) Home Loan Bank System.

"While the housing slump must be addressed, an enormous government bailout for fraudulent lenders and, in some instances, irresponsible borrowers, at the expense of responsible and hardworking American taxpayers is not the answer," said Tiahrt. "This is a reckless circular bill. To pay for the new FHA financing plan, it adds an additional tax on Fannie Mae and Freddie Mac that will only be passed along to the consumers it was supposed to help.

"I cannot support legislation that rewards bad behavior at the expense of taxpayers; however, I remain strongly committed to supporting measures that provide the necessary relief to families who have been victimized by this housing crisis. I strongly support the Housing Opportunity for All Americans Act of 2008 (H.R. 5974) and the Homeownership Protection and Housing Market Stabilization Act of 2008 (H.R. 5857). Both bills are responsible solutions that have market incentives like a one time tax credit for homebuyers of 10 percent of the home’s purchase price, improved disclosure practices, fraud combating and prevention measures, and solutions to rework loans instead of foreclosing.

"H.R. 5974 and H.R. 5857 together represent a viable alternative, offering an appropriate response to a serious problem without burdening taxpayers for the irresponsibility of others – and without increasing our national debt limit and increasing the tax burden on responsible Americans."

H.R. 3221 passed the House by a vote of 272-152.