Rep. Markey said, "The housing crisis has had a significant impact in Massachusetts and nationwide. In these difficult financial times, as gas and food prices continue to soar, the citizens of Massachusetts deserve to know that further help is on the way.

"Today, with this legislation, we are taking steps to revitalize our communities for a better tomorrow. Together these bills will provide desperately needed help to deserving American homeowners and their neighborhoods now."

H.R. 5818, the Neighborhood Stabilization Act of 2008, is the most comprehensive response yet to the American mortgage crisis. The bill would prevent neighborhood decline with targeted assistance to states and local government to purchase foreclosed property. A federal loan and grant program would distribute the $15 billion in funds authorized under the legislation.

H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act, would modernize the Federal Housing Authority and reform government oversight of Fannie Mae, Freddie Mac, and the 12 other Federal Home Loan Banks in order to provide crucial liquidity to our mortgage markets now, and to strengthen regulation and oversight for the future. Its measures will begin to repair the economy, restore confidence in the markets, limit the damage to families and neighborhoods, and help build new affordable housing.

Both bills now move to the Senate for consideration. 

The Pew Charitable Trusts estimates that one in 48 Massachusetts homeowners is likely to experience foreclosure on his/her home as a result of high-cost loans. Moreover, 39% of all of Massachusetts homeowners are expected to feel the ripple effects of foreclosures from subprime loans with an average loss in property value of $7,885.

The full report from the Pew Charitable Trusts is available here: http://www.pewtrusts.org/news_room_detail.aspx?id=37950