Sec. 2. Findings
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Congress finds the following: In the fourth quarter of 2016, over 17,200,000 homes remain vacant in the United States. These extended vacancies depress neighborhood property values and create a downward spiral in neighborhood stability in already troubled communities. Meanwhile, due to climbing expenses of higher education, the total Federal student debt owed equals $1,300,000,000. More than 40,000,000 Americans have at least one outstanding student loan, up dramatically from 29,000,000 Americans just 10 years ago.
Student loan repayments are forcing millions of young families out of purchasing their first home, as they cannot afford to save for a down payment or qualify for a mortgage. It is imperative to find a way to systematically convert debt streams into equity streams, otherwise housing purchases will continue to be sluggish and thousands more Americans will retire saddled with student loan debt never having had the opportunity to accumulate equity. It is in the interest of the Federal Government to use the resources at its disposal, including both housing properties held in trust and student debt obligations, to put reverse pressure on these downward trends.
By arranging financing that recalculates terms, debt-to-income ratios, mortgage interest rates, and other factors, short-term student debt could transition into longer term home ownership. The goal is to connect creditworthy Federal student debt holders with housing properties for sale but held by the Federal Government. Eventually, participants can help restore neighborhoods, transform their debt to equity, and buy property values locally and on the Federal ledger simply by maintaining and investing in a home mortgage.