Rep. Shelley Moore Capito, R-W.Va. (2nd CD), issued the following news release:

In a culmination of months of bipartisan debate and discussion, the House of Representatives today approved broad legislation to combat home foreclosures and implement overdue reforms to the housing market. Included in the bill is an amendment offered by Rep. Shelley Moore Capito (R-WV) to expand flexibility for service veterans participating in the Veterans Affairs Home Loan Programs.

"This legislation is a real attempt to provide stability to the housing market and the economy as a whole in a way that provides support for West Virginians and homeowners throughout the country," said Capito.

"Passing comprehensive housing legislation has been at the forefront of my agenda since I took on a leadership role in the Financial Services Committee, and I'm excited about the progress we've made. This is a bipartisan bill that benefited from constructive give and take from both sides of the political aisle."

The American Housing Rescue and Foreclosure Prevention Act is the product of bipartisan work in the House Financial Services Committee, where Capito is the Ranking Member of the Subcommittee on Housing and Community Opportunity.

The legislation will modernize the Federal Housing Administration (FHA), enabling the federal agency to assist hundreds of thousands of additional borrowers by expanding access to stable mortgage options for low and moderate income borrowers.

The House-passed bill will also provide much-needed upgrades in regulatory oversight of Government Sponsored Enterprises (GSE) such as Fannie Mae, Freddie Mac and Federal Home Loan Banks - which play a significant role in the U.S. mortgage market.

As a result of Capito's amendment, this bill will correct a glaring oversight from the Economic Stimulus Act, where the Veterans Affairs Home Loan program was omitted from the expanded conforming loan limits enacted for other federal programs.

The language offered by Capito was included in today's bill during committee proceedings and will correct the omission. Conforming loan limits for mortgages backed by the Department of Veterans Affairs will now mirror temporary increases in loan limits for mortgages backed by the Federal Housing Administration (FHA) and Government Sponsored Enterprises (GSE). Under federally guaranteed loans, borrowers may obtain more favorable financing terms because the lender faces less liability for loss.

"Our veterans deserve the same flexibility we've extended to programs administered through other agencies," said Capito. "I'm glad we've been able to correct this oversight to reaffirm our commitment to those who served so admirably."

Another Capito-sponsored measure included in the bill will enhance the ability of Federal Home Loan Banks to provide financing and support for community development projects. The impact of the credit crunch has jeopardized liquidity in the credit market, placing a particularly heavy burden on smaller rural communities. The enhanced capabilities of Federal Home Loan Banks will help alleviate this burden and protect much-needed support for local community and economic development.