The Republican-controlled House of Representatives has voted to end three current home ownership subsidy schemes.
While controlling only one chamber of government, the Republicans are limited in how much change they can bring about but an analysis of the bills they’re passing in the House reveal the type of free market America that they want.
Fewer inefficient subsidies bailing out those who bought more home than they could afford would free up capital to be spent more efficiently in the wider economy, leading to economic growth and employment and allowing people to pay their own mortgages on their own.
The House has also voted to eliminate three federal programs meant to help homeowners in danger of foreclosure. Two help modify loans to create lower payments. Another gives out no-interest loans to borrowers in trouble. All have been criticized for moving too slowly and helping too few.
So, in March, the House voted to eliminate them all. The Congressional Budget Office found that could save $2.4 billion for taxpayers.
“None of the programs … have been successful,” Michael Steel, a spokesman for House Speaker John A. Boehner (R-Ohio), wrote in a statement. Rather “than tweaking them, our focus is helping people get jobs, so they can pay their mortgage and stay in their home.”
So, if the House’s bills became law, who would Americans turn to for help with their mortgages? The bills call for studies of how mortgage-relief programs could be used to help one slice of the U.S. population: veterans, active-duty service members and their families.
For everybody else, the House bill says the best recourse would be the House itself.
“The Secretary of Housing and Urban Development shall publish to its Website on the World Wide Web in a prominent location, large point font, and boldface type the following statement,” one of its bills says.
“If you are having trouble paying your mortgage and need help contacting your lender or servicer,” that statement would say, “please contact your Member of Congress.”