madam chairman , i yield myself such time as i may consume . 
gses have been at the forefront of creating affordable housing opportunities for american families . 
while nationally the homeownership rate is at a record high of 69.2 percent , many high-cost metropolitan areas across the nation lag behind this national rate . 
in the second quarter of 2004 , the national average was 69.2 percent . 
yet in new york , new york it was 36.6 ; los angeles , california , 51.6 ; orange county , california 61.4 ; and boston , massachusetts , 59.4 . 
the high-cost area designation takes median home prices into account , but would be capped at 150 percent of the statutory loan limit , the same limit that now applies to alaska , hawaii , guam , and the virgin islands . 
if it is good enough for alaska , guam , hawaii , and the virgin islands , it should also be good enough for california ; michigan ; new york ; connecticut ; new jersey ; nevada ; virginia ; washington , d.c. ; pennsylvania ; florida ; new hampshire ; and many more . 
for example , in the north new jersey metropolitan statistical area , the median home price is $ 435 , 200 . 
it this amendment passes , it would drop to $ 359 , 650 under the loan limits . 
the conforming loan limit provision in this bill will make a meaningful cost difference for home buyers . 
based on the current interest rate environment , the current monthly payment difference between a conforming loan and a jumbo loan can save a homeowner up to $ 171 per month . 
in high-cost areas a significant majority of entry-level homes exceed the national conforming loan limit . 
the conforming loan limits language in h.r. 1461 will help nearly 245 , 000 first-time home buyers . 
in fact , in the gentleman from new jersey 's ( mr. garrett ) xz4001450 district alone , it helps 42 , 987 first-time buyers . 
there is broad-based opposition to this amendment . 
national association of realtors oppose it ; national association of home builders , national association of mortgage brokers , independent community bankers of america , national alliance of independent bankers . 
i just received a call from hud secretary jackson , who also opposes this amendment . 
there are three parts in section 123 . 
the garrett amendment deletes all three in this section . 
i think that is an error on his part . 
this section sets conforming loan limits and requires the agency to make annual adjustments to the limits based on increases or decreases in a housing price index maintained by the agency . 
two , the accuracy of the housing price index is required to be audited by the gao . 
and , three , for high-cost metropolitan statistical areas , the conforming loan limit is raised to the lesser of 150 percent of the statutory limit or the median home price in the area . 
the garrett amendment does not just strike the high-cost area provision , it completely strikes the entire conforming loan limits section of the bill : one , how the loan limit is calculated . 
two , it creates uncertainty on who is supposed to set the new loan limit every year . 
three , it eliminates flexibility in loan limits to reflect market fluctuations , and the gao study to develop loan limit is deleted by this amendment entirely . 
this basically is to make sure that high-cost areas are provided the same flexibility that guam , alaska , hawaii , and virgin islands are currently benefiting from . 
the housing costs are going up across this nation . 
this bill was worked in a fashion to allow for that , to allow systematic review yearly of these high-cost areas so gses can go out and compete in the jumbo marketplace , decreasing the cost of loans to individuals , decreasing their payments , allowing more individuals in the first-time marketplace to own a home and get the best possible home they can buy , especially during bad times . 
when the economy starts to fail , banks sometimes pull out of marketplaces . 
gses at that time pull into them in a heavier fashion to make sure there is liquidity . 
there is ample overview within this bill to make sure safety and soundness are taken into consideration . 
these loans are securitized . 
these loans just are just not sitting out there floating in the marketplace . 
these are good , sound loans based on people who need that . 
madam chairman , i reserve the balance of my time . 
