Congressman Lungren released the following statement regarding the Foreclosure Prevention Act (H.R. 3221): 

"Please be assured that I am well aware of the gravity of our recent housing crisis.  The fallout from the crash of the sub-prime mortgage market has been widespread and claimed many victims.  Those who have faithfully paid their mortgages now see their home values declining.  Some Americans have lost their homes.  Many in the construction industry and other housing-related industries have lost their jobs.  Furthermore, many people are now living in neighborhoods dotted with boarded up or abandoned homes on properties that have undergone foreclosure.

"In this regard, it is critical that action by the Congress must be responsive to the underlying crisis itself.  At a time when Americans are hurting, the House of Representatives was presented with a bill which would have bailed out investors who willingly and knowingly purchased securities that were cobbled together from mortgages that were poorly underwritten.  H.R. 3221 would transfer risks that should be borne by lenders and investors to American taxpayers who have already been victimized by irrational market speculation.  Furthermore, the non-partisan Congressional Budget Office (CBO) pointed out the inordinate cost of the system.