The White House

Office of the Press Secretary

Statement by the President on the Occasion of Eid al-Fitr

Michelle and I send our warmest greetings to Muslims celebrating Eid al-Fitr here in the United States and around the world. During the past month, Muslims have honored their faith through prayer and service, fasting and time spent with loved ones. At this year’s White House Iftar, I was proud to spend time with some of the many American Muslims whose contributions enrich our democracy and strengthen our economy. Many of us have had the opportunity to break fast with our Muslim friends and colleagues—a tradition that reminds us to be grateful for our blessings and to show compassion to the less fortunate among us, including millions of Syrians who spent Ramadan displaced from their homes, their families, and their loved ones. To help the many Syrians in need this Eid al-Fitr, the United States is providing an additional $195 million in food aid and other humanitarian aid, bringing our humanitarian contribution to the Syrian people to over $1 billion since the crisis began. For millions of Americans, Eid is part of a great tapestry of America’s many traditions, and I wish all Muslims a blessed and joyful celebration. Eid Mubarak.

The White House

Office of the Press Secretary

Statement by Deputy National Security Advisor for Strategic Communications Ben Rhodes on the Expiration of the Ban on Imports from Burma

Today, in light of the July 28 expiration of the Burmese Freedom and Democracy Act’s (BFDA) ban on imports from Burma, the President issued an Executive Order that repeals the provisions of Executive Order 13310 that implemented the broad BFDA import ban on products of Burma.  

President Obama fully supported the expiration of the broader ban on imports from Burma and is taking this step to advance our policy of promoting responsible economic engagement and encouraging reform that directly benefits the Burmese people.  The removal of the broad ban on imports of articles other than jadeite and rubies, and articles of jewelry containing them, represents the next step in the Administration’s continued efforts to promote responsible trade and investment in support of Burma’s reform process.  However, due to continuing concerns, including with respect to labor and human rights in specific sectors, this Executive Order  reinstates the prohibitions and restrictions on the importation into the United States of jadeite and rubies mined or extracted from Burma, and on articles of jewelry containing them, that was originally imposed by the Tom Lantos Block Burmese JADE (Junta’s Anti-Democratic Efforts) Act of 2008, which amended the BFDA.   The Administration is maintaining restrictions on specific activities and actors that contribute to human rights abuses or undermine Burma’s democratic reform process.

Today’s announcement continues to broaden American engagement in Burma, including increased opportunities for trade and investment, development assistance to strengthen the capacity of the government and people to promote growth and opportunity, and principled support for political reform and national reconciliation. Americans will continue to stand with the government and people of Burma as they continue their democratic transition, and work to realize the full promise of their extraordinary country.

The White House

Office of the Press Secretary

Executive Order -- Prohibiting Certain Imports of Burmese Jadeite and Rubies

EXECUTIVE ORDER

- - - - - - -

PROHIBITING CERTAIN IMPORTS OF BURMESE JADEITE AND RUBIES

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), the Tom Lantos Block Burmese JADE (Junta's Anti-Democratic Efforts) Act of 2008 (Public Law 110-286) (the "JADE Act"), and section 301 of title 3, United States Code, and in order to take additional steps with respect to the national emergency declared in Executive Order 13047 of May 20, 1997, as modified in scope in Executive Order 13448 of October 18, 2007, and Executive Order 13619 of July 11, 2012, and relied upon for additional steps taken in Executive Order 13310 of July 28, 2003, Executive Order 13448 of October 18, 2007, Executive Order 13464 of April 30, 2008, and Executive Order 13619 of July 11, 2012,

I, BARACK OBAMA, President of the United States of America, hereby order:

Section 1. (a) The importation into the United States of any jadeite or rubies mined or extracted from Burma and any articles of jewelry containing jadeite or rubies mined or extracted from Burma is hereby prohibited.

(b) The prohibition in subsection (a) of this section applies except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted prior to the effective date of this order.

Sec. 2. I hereby amend Executive Order 13310 of July 28, 2003, by revoking sections 3 and 8 of that order. The revocation of those provisions of Executive Order 13310 pursuant to this section shall not affect any violation of any rules, regulations, orders, licenses, or other forms of administrative action under that order during the period that those provisions of that order were in effect.

Sec. 3. (a) Any transaction that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions set forth in this order is prohibited.

(b) Any conspiracy formed to violate any of the prohibitions set forth in this order is prohibited.

Sec. 4. For the purposes of this order:

(a) the term "jadeite" means any jadeite classifiable under heading 7103 of the Harmonized Tariff Schedule of the United States (HTS);

(b) the term "rubies" means any rubies classifiable under heading 7103 of the HTS;

(c) the term "articles of jewelry containing jadeite or rubies" means:

(i) any article of jewelry classifiable under heading 7113 of the HTS that contains jadeites or rubies; or

(ii) any article of jadeite or rubies classifiable under heading 7116 of the HTS;

(d) the term "person" means an individual or entity;

(e) the term "entity" means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization.

Sec. 5. Nothing in section 1 of this order shall prohibit transactions to the extent such prohibition would conflict with the international obligations of the United States under the Vienna Convention on Diplomatic Relations, the Vienna Convention on Consular Relations, the United Nations Headquarters Agreement, or other legal instruments providing equivalent privileges and immunities.

Sec. 6. Nothing in section 1 of this order shall prohibit the importation of any jadeite or rubies mined or extracted from Burma or any articles of jewelry containing jadeite or rubies mined or extracted from Burma that were previously exported from the United States, including those that accompanied an individual outside the United States for personal use, if they are reimported to the United States by the same person, without having been advanced in value or improved in condition by any process or other means while outside the United States.

Sec. 7. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA as may be necessary to carry out the purposes of this order. The Secretary of the Treasury may redelegate any of these functions to other officers and agencies of the United States Government consistent with applicable law. All agencies of the United States Government are hereby directed to take all appropriate measures within their authority to carry out the provisions of this order.

Sec. 8. Pursuant to section 5(i) of the JADE Act, I hereby determine and certify that it is in the national interest of the United States to waive, and hereby waive, the sanctions described in section 5(b) of the JADE Act. Except as authorized or exempt, transactions with persons included on the Department of the Treasury's List of Specially Designated Nationals and Blocked Persons continue to be prohibited pursuant to IEEPA.

Sec. 9. This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Sec. 10. This order is effective at 12:01 a.m. eastern daylight time on August 7, 2013.

BARACK OBAMA

The White House

Office of the Press Secretary

Letter -- Prohibiting Certain Imports of Burmese Jadeite and Rubies

Dear Mr. Speaker: (Dear Mr. President:)

I hereby report that I have issued an Executive Order (the "order") pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA) and the Tom Lantos Block Burmese JADE (Junta's Anti-Democratic Efforts) Act of 2008 (Public Law 110-286) (the "JADE Act") that takes additional steps with respect to the national emergency declared in Executive Order 13047 of May 20, 1997, as modified in scope in Executive Order 13448 of October 18, 2007, and Executive Order 13619 of July 11, 2012, and relied upon for additional steps taken in Executive Order 13310 of July 28, 2003, Executive Order 13448 of October 18, 2007, Executive Order 13464 of April 30, 2008, and Executive Order 13619 of July 11, 2012.

In Executive Order 13047, the President found that the Government of Burma committed large-scale repression of the democratic opposition in Burma after September 30, 1996, and further determined that the actions and policies of the Government of Burma constituted an unusual and extraordinary threat to the national security and foreign policy of the United States and declared a national emergency to deal with that threat. To address that threat and to implement section 570 of the Foreign Operations, Export Financing, and Related Appropriations Act, 1997 (Public Law 104-208), the President in Executive Order 13047 prohibited new investment in Burma by United States persons. On July 28, 2003, the President issued Executive Order 13310, which contained prohibitions implementing certain provisions of the Burmese Freedom and Democracy Act of 2003 (Public Law 108-61) and blocked the property and interests in property of persons listed in the Annex to Executive Order 13310 or determined by the Secretary of the Treasury, in consultation with the Secretary of State, to meet designation criteria specified in Executive Order 13310. In Executive Order 13448, the President expanded the scope of the national emergency declared in Executive Order 13047, incorporated existing designation criteria set forth in Executive Order 13310, blocked the property and interests in property of persons listed in the Annex to Executive Order 13448, and provided additional criteria for designations of other persons. In Executive Order 13464, the President blocked the property and interests in property of persons listed in the Annex to Executive Order 13464 and provided additional criteria for designations of other persons. In Executive Order 13619, I modified the scope of the national emergency declared in Executive Order 13047 and provided additional designation criteria.

The order that I have just issued prohibits the importation into the United States of any jadeite or rubies mined or extracted from Burma and any articles of jewelry containing jadeite or rubies mined or extracted from Burma. The order amends Executive Order 13310 to revoke the section of that order imposing a prohibition on the importation into the United States of any article that is a product of Burma and a related section. The order waives the sanctions described in section 5(b) of the JADE Act. Except as authorized or exempt, transactions with persons included on the Department of the Treasury's List of Specially Designated Nationals and Blocked Persons continue to be prohibited pursuant to IEEPA.

The order authorizes the Secretary of the Treasury, in consultation with the Secretary of State, to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA as may be necessary to carry out the purposes of the order.

All agencies of the United States Government are directed to take all appropriate measures within their authority to carry out the provisions of the order.

I am enclosing a copy of the Executive Order I have issued.

Sincerely,

BARACK OBAMA

A Better Bargain for the Middle Class: A Home to Call Your Own

August 07, 2013 | 03:26 | Public Domain

Restoring security to homeownership is one of President Obama's top economic priorities. In Phoenix, he laid out his ideas to strengthen the housing market and ensure responsible middle class families have access to affordable mortgages and refinancing.

But, he made it clear that we can't go back to the same bubble-and-burst housing system that caused the financial crisis. We need a rock-solid foundation for financing homeownership with a bigger role for the private sector, where taxpayers aren't on the hook for the irresponsible behavior or bad decisions of financial institutions.

See the highlights, then learn more at http://obamawhitehouse.archives.gov/a-better-bargain

Download mp4 (256MB)

The White House

Office of the Press Secretary

Statement by the Press Secretary on the President’s Travel to Sweden

Before traveling to Russia, the President will travel to Stockholm, Sweden, on September 4 and 5.  Sweden is a close friend and partner to the United States.  Sweden plays a key leadership role on the international stage, including in opening new trade and investment opportunities through the U.S.-EU Transatlantic Trade and Investment Partnership, advancing clean technologies, and promoting environmental sustainability.

The White House

Office of the Press Secretary

Statement by the Press Secretary on the President’s Travel to Russia

Following a careful review begun in July, we have reached the conclusion that there is not enough recent progress in our bilateral agenda with Russia to hold a U.S.-Russia Summit in early September.  We value the achievements made with Russia in the President’s first term, including the New START Treaty, and cooperation on Afghanistan, Iran, and North Korea.  However, given our lack of progress on issues such as missile defense and arms control, trade and commercial relations, global security issues, and human rights and civil society in the last twelve months, we have informed the Russian Government that we believe it would be more constructive to postpone the summit until we have more results from our shared agenda.  Russia’s disappointing decision to grant Edward Snowden temporary asylum was also a factor that we considered in assessing the current state of our bilateral relationship. Our cooperation on these issues remains a priority for the United States, so on Friday, August 9, Secretaries Hagel and Kerry will meet with their Russian counterparts in a 2+2 format in Washington to discuss how we can best make progress moving forward on the full range of issues in our bilateral relationship.

The President still looks forward to traveling to St. Petersburg on September 5-6 to attend the G-20 Summit.

The White House

Office of the Press Secretary

Statement by the President on the 15th Anniversary of the Embassy bombings in Kenya and Tanzania

Today marks the 15th anniversary of al-Qaeda’s terrorist attacks against the U.S. Embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, which killed innocent Americans and Africans.  On this day, we honor the families of the twelve Americans who lost their lives, and we join with the people and governments of Kenya and Tanzania honoring the sacrifices of the African victims of this heinous act, which killed over 200 and wounded over 5,000. 

Last month, I was honored to pay tribute to those who lost their lives, and to meet with some of the survivors, at a memorial to the fallen in Dar es Salaam.  The United States is steadfast in our commitment to protect the American men and women who dutifully serve our nation overseas, and we will remain resolute in working with our partners to combat violent extremism  in East Africa, across the region, and around the world.  We continue to stand with our East African partners to bring terrorists to justice and will carry on our efforts to prevent these attacks in the future.  On this day of remembrance, we extend our deepest thoughts and prayers to the families of those killed and wounded in the 1998 attack, and we join with our friends and partners in East Africa and around the globe in honoring their memory by building a safer, more secure, and more prosperous world.  

The White House

Office of the Press Secretary

Interview of the President by Jay Leno, The Tonight Show

NBC Studios
Burbank, California

4:34 P.M. PDT

Q    Welcome the President of the United States -- Barack Obama.  (Applause.) 

Welcome back, sir.

THE PRESIDENT:  Thank you.  It's good to be back.  (Applause.) 

Q    Well, we're thrilled to have you.

THE PRESIDENT:  It is good to be back.

Q    And a happy birthday.

THE PRESIDENT:  Thank you very much.

Q    Happy birthday to you.

THE PRESIDENT:  Thank you.  (Applause.)

Q    So how did you celebrate Sunday?  What did you do?

THE PRESIDENT:  I had a bunch of friends come over who I don't see that often from high school and college.  And we played a little golf, and then we tried to play a little basketball.  And it was a sad state of affairs.  (Laughter.) 

Q    Really? 

THE PRESIDENT:  A bunch of old guys.  Where's the Ibuprofen and all that stuff.  (Laughter.)

Q    But you're pretty competitive. 

THE PRESIDENT:  I am pretty competitive.  But the day of my birthday -- we do departure photos of people who are transitioning out of the White House.  And we let them bring their families and they take a picture in the Oval Office.  And this wonderful staff person came in and had a really cute, young son.  He looked like Harry Potter, a six-year-old guy.  (Laughter.)  He came in, he had an economic report for me.  He had graphs and everything.  (Laughter.)  And, he says, "My birthday is in August, too."  I said, "Well, how old are you going to be?"  He said, "Seven."  He said, "How old are you?"  I said, "Fifty-two."  He said, "Whoa."  (Laughter.)  Whoa.  Whoa.  (Laughter.)  He looked off in the distance.  He was trying to project.  (Laughter.)  

Q    Yes, you can't even -- 

THE PRESIDENT:  You can't go out that far.

Q    You can't grasp that number, no.  (Laughter.)  Now, I've seen Michelle tease you about your gray hair.  You have a bit of silver in your hair.  Do you tease back?

THE PRESIDENT:  No.  (Laughter and applause.)  That's why we're celebrating our 21st anniversary.  (Laughter.)  

Q    As I'm married 33 years, I know exactly what you're saying.  (Laughter.)  I've got to ask you about this.  Everyone is concerned about these embassy closings.  How significant is this threat?

THE PRESIDENT:  Well, it's significant enough that we're taking every precaution.  We had already done a lot to bolster embassy security around the world, but especially in the Middle East and North Africa, where the threats tend to be highest.  And whenever we see a threat stream that we think is specific enough that we can take some specific precautions within a certain timeframe, then we do so. 

Now, it's a reminder that for all the progress we've made -- getting bin Laden, putting al Qaeda between Afghanistan and Pakistan back on its heels -- that this radical, violent extremism is still out there.  And we've got to stay on top of it.  It's also a reminder of how courageous our embassy personnel tend to be, because you can never have 100 percent security in some of these places.  The countries themselves sometimes are ill-equipped to provide the kind of security that you want.  Even if we reinforce it, there are still vulnerabilities. 

And these diplomats, they go out there and they serve every day.  Oftentimes, they have their families with them.  They do an incredible job and sometimes don't get enough credit.  So we're grateful to them and we've got to do everything we can to protect them.  (Applause.)

Q    This global travel warning, this is for Americans all around the world?  Are we telling people don't take that European vacation just yet?  What are we saying?

THE PRESIDENT:  I think the general rule is just show some common sense and some caution.  So there are some countries where you're less likely to experience a terrorist attack.  There are some where there are more dangers.  And if people are paying attention, checking with the State Department or embassy, going on the website before you travel, find out what kind of precautions you should be taking, then I think it still makes sense for people to take vacations.  They just have to make sure that they're doing so in a prudent way.

Q    What do you say to those cynics who go, oh, this is an overreaction to Benghazi -- how do you respond to that?

THE PRESIDENT:  One thing I've tried to do as President is not over react, but make sure that as much as possible the American people understand that there are genuine risks out there.  What's great about what we've seen with America over the last several years is how resilient we are.  So after the Boston bombing, for example, the next day folks were out there, they're going to ball games.  They are making sure that we're not reacting in a way that somehow shuts us down. 

And that's the right reaction.  Terrorists depend on the idea that we're going to be terrorized.  And we're going to live our lives.  And the odds of people dying in a terrorist attack obviously are still a lot lower than in a car accident, unfortunately.  But there are things that we can do to make sure that we're keeping the pressure on these networks that would try to injure Americans.  And the first thing I think about when I wake up and the last thing I think about when I go to bed is making sure that I'm doing everything I can to keep Americans safe.  (Applause.)   

Q    It's safe to say that we learned about these threats through the NSA intelligence program?  Is that a fair assessment?

THE PRESIDENT:  Well, this intelligence-gathering that we do is a critical component of counterterrorism.  And obviously, with Mr. Snowden and the disclosures of classified information, this raised a lot of questions for people.  But what I said as soon as it happened I continue to believe in, which is a lot of these programs were put in place before I came in.  I had some skepticism, and I think we should have a healthy skepticism about what government is doing.  I had the programs reviewed.  We put in some additional safeguards to make sure that there's federal court oversight as well as congressional oversight, that there is no spying on Americans. 

We don't have a domestic spying program.  What we do have are some mechanisms where we can track a phone number or an email address that we know is connected to some sort of terrorist threat.  And that information is useful.  But what I've said before I want to make sure I repeat, and that is we should be skeptical about the potential encroachments on privacy.  None of the revelations show that government has actually abused these powers, but they're pretty significant powers. 

And I've been talking to Congress and civil libertarians and others about are there additional ways that we can make sure that people know nobody is listening to your phone call, but we do want to make sure that after a Boston bombing, for example, we've got the phone numbers of those two brothers -- we want to be able to make sure did they call anybody else?  Are there networks in New York, are there networks elsewhere that we have to roll up?  And if we can make sure that there's confidence on the part of the American people that there's oversight, then I think we can make sure that we're properly balancing our liberty and our security.

Q    When we come back, I want to ask you about Russia and Snowden.  I hit on something in the monologue which just seems incredible to me, and I want to get your thoughts on that.

More with the President when we come back.  (Applause.)

* * *

Q    Welcome back to our discussion with President Barack Obama.  (Applause.) 

Let me ask you about this -- the NSA leaker Edward Snowden.  Some call him a whistleblower.  What do you call him?

THE PRESIDENT:  Well, we don’t know yet exactly what he did, other than what he’s said on the Internet, and it’s important for me not to prejudge something. 

Q    Got you.

THE PRESIDENT:  Hopefully, at some point he’ll go to trial and he will have a lawyer and due process, and we can make those decisions. 

I can tell you that there are ways, if you think that the government is abusing a program, of coming forward.  In fact, I, through executive order, signed whistleblower protection for intelligence officers or people who are involved in the intelligence industry.  So you don’t have to break the law.  You don’t have to divulge information that could compromise American security.  You can come forward, come to the appropriate individuals and say, look, I’ve got a problem with what’s going on here, I’m not sure whether it’s being done properly. 

If, in fact, the allegations are true, then he didn’t do that.  And that is a huge problem because a lot of what we do depends on terrorists networks not knowing that, in fact, we may be able to access their information.
 
Q    Let me add -- now, he was a contracted employee.

THE PRESIDENT:  Yes.

Q    And it seems the government has a lot of these.  I remember when I was coming up my brother was in ROTC, and in those days, they would take college students, you go into the Army, the Army would train you.  This guy is being paid money by an outside firm, living in Hawaii, got the stripper girlfriend. All of a sudden you’re all upset with what the government is doing, and you go to another country.  I mean, in my era, Daniel Ellsberg stood in the town square and said, “I’ve got this,” got arrested, The New York Times -- I mean, should we go back to not using so many -- whether it’s Blackwater or any of these contract -- these people who are Hessians, they get paid?

THE PRESIDENT:  Well, I think you’re raising an important issue.  We’ve been trying to reduce the reliance on contractors. Some of the contractors do a great job, and they’re patriots and they’re trying to support our mission.  Sometimes they can do it more efficiently or effectively if they’ve got some specialized knowledge.  But one of the things that I’ve asked our team to look at is, when it comes to intelligence, should we, in fact, be farming that much stuff out.  And there are a lot of extraordinarily capable folks in our military and our government who can do this, and probably do it cheaper, and then benefit from the training that they get so that when they transfer -- (applause) -- they’re in a better position.

Q    Now, were you surprised that Russia granted Snowden asylum?

THE PRESIDENT:  I was disappointed because even though we don’t have an extradition treaty with them, traditionally we have tried to respect if there’s a law-breaker or an alleged law-breaker in their country, we evaluate it and we try to work with them.  They didn’t do that with us.  And in some ways it’s reflective of some underlying challenges that we’ve had with Russia lately.  A lot of what’s been going on hasn’t been major breaks in the relationship, and they still help us on supplying our troops in Afghanistan; they’re still helping us on counterterrorism work; they were helpful after the Boston bombing in that investigation.  And so there’s still a lot of business that we can do with them.

But there have been times where they slip back into Cold War thinking and a Cold War mentality.  And what I consistently say to them, and what I say to President Putin, is that’s the past and we’ve got to think about the future, and there’s no reason why we shouldn’t be able to cooperate more effectively than we do.

Q    And Putin seems to me like one of those old-school KGB guys.

THE PRESIDENT:  Well, he headed up the KGB.  (Laughter.)  

Q    Yes.  Well, that’s what I mean.  Yes, that’s what I mean.  He has that mentality.  I mean, look at this picture here. You two don’t look pretty -- (laughter) -- you look like me and the NBC executives.  What is going on there?  (Laughter.)  That doesn’t look like a friendly picture.

THE PRESIDENT:  Well, the truth is, is that when we have meetings we can have some pretty blunt exchanges and animated exchanges.  But he’s got -- that seems to be his preferred style during press conferences, is sitting back and not looking too excited.  (Laughter.)  Now, part of it is he’s not accustomed to having press conferences where you’ve got a bunch of reporters yelling questions at you. 

Q    Now, the G20 summit is in St. Petersburg next --

THE PRESIDENT:  Coming up, right.

Q    Are you going to that and will you meet with Putin?

THE PRESIDENT:  I will be going to that.  I will be going to that because the G20 summit is the main forum where we talk about the economy, the world economy, with all the top economic powers in the world.  So it’s not something unique to Russia.  They’re hosting it this year, but it’s important for us, as the leading economy in the world, to make sure that we’re there -- in part because creating jobs, improving our economy, building up our manufacturing base, increasing wages -- all those things now depend on how we compete in this global economy.  And when you’ve got problems in Europe, or China is slowing down, that has an impact here in the United States. 

And I’ve been saying for the entire tenure of my presidency that my number-one priority at all times is how do we create an economy where, if you work hard in this country, you can succeed. And there are a lot of things that we can do here in this country, but we’ve also got to pay attention to what’s going on outside it.

Q    Well, something that shocked me about Russia -- and I’m surprised this is not a huge story -- suddenly, homosexuality is against the law.  I mean, this seems like Germany:  Let’s round up the Jews, let’s round up the gays, let’s round up the blacks. I mean, it starts with that.  You round up people who you don’t
-- I mean, why is not more of the world outraged at this?

THE PRESIDENT:  Well, I’ve been very clear that when it comes to universal rights, when it comes to people’s basic freedoms, that whether you are discriminating on the basis of race, religion, gender or sexual orientation, you are violating the basic morality that I think should transcend every country.  And I have no patience for countries that try to treat gays or lesbians or transgender persons in ways that intimidate them or are harmful to them.

Now, what’s happening in Russia is not unique.  When I traveled to Africa, there were some countries that are doing a lot of good things for their people, who we’re working with and helping on development issues, but in some cases have persecuted gays and lesbians.  And it makes for some uncomfortable press conferences sometimes.  But one of the things that I think is very important for me to speak out on is making sure that people are treated fairly and justly, because that’s what we stand for. And I believe that that’s a precept that’s not unique to America, that’s something that should apply everywhere.  (Applause.)

Q    Do you think it will affect the Olympics?

THE PRESIDENT:  I think Putin and Russia have a big stake in making sure the Olympics work, and I think they understand that for most of the countries that participate in the Olympics, we wouldn’t tolerate gays and lesbians being treated differently.  They’re athletes, they’re there to compete.  And if Russia wants to uphold the Olympic spirit, then every judgment should be made on the track, or in the swimming pool, or on the balance beam, and people’s sexual orientation shouldn’t have anything to do with it.  (Applause.)

Q    Good enough for me. 

We’ll be right back.  We’ll talk about the economy when we come back.

THE PRESIDENT:  Absolutely.

Q    More with President Obama right after this.  (Applause.)

    * * *

Q    Welcome back.  We’re talking with the President of the United States, Barack Obama. 

Hey, let’s talk about the economy.  Things seem to be getting better, seem to be improving.

THE PRESIDENT:  Well, the economy is growing.

Q    Yes.

THE PRESIDENT:  The unemployment rate has been ticking down, and housing is improving.  We’ve seen the deficit cut in half.  Health care costs are actually going up slower than they have in -- any time in the last 50 years.  So there are a lot of good trends. 

Q    Right.

THE PRESIDENT:  But I think what folks all across the country would tell you is we’ve got a lot more work to do.  Wages and salaries haven’t gone up.  Middle-class families are still struggling to make sure they can pay for their kids’ college education.  They're still concerned about whether they can retire.

And what Washington should be thinking about every single day is how do we make sure we’ve got an economy where if folks work hard, they can find a good job that pays a decent wage;  they can send their kids to college; they've got health care they can count on; they can retire even if they don't get rich -- or even if they're not rich; and that we’re creating these ladders of opportunities for people to get into the middle class.

And what’s happened over the last 20 years is -- actually longer than that, probably over the last 30 -- is that the gap between those of us at the very top and the vast middle has been growing wider and wider.  And some of that is globalization.  Some of it is technology.  You go to a factory -- you’re a car guy -- if you go to an auto plant now, robots, and it’s clean as a whistle, and it doesn't employ as many people as it used to.  So a lot of those middle-class jobs have gone away.

And what we have to do is make sure that we are investing in infrastructure, research; making sure our kids are educated properly; and an improved and more stable housing market instead of the kind of bubbles that we had before.  All those things can really make a difference.

Q    You mentioned infrastructure.  Why is that a partisan issue?  I live in a town, the bridge is falling apart, it’s not safe.  How does that become Republican or Democrat?  How do you not just fix the bridge?  (Laughter and applause.)

THE PRESIDENT:  I don't know.  As you know, for the last three years, I’ve said, let’s work together.  Let’s find a financing mechanism and let’s go ahead and fix our bridges, fix our roads, sewer systems, our ports.  The Panama is being widened so that these big supertankers can come in.  Now, that will be finished in 2015.  If we don't deepen our ports all along the Gulf -- places like Charleston, South Carolina, or Savannah, Georgia, or Jacksonville, Florida -- if we don't do that, those ships are going to go someplace else.  And we’ll lose jobs.  Businesses won’t locate here.

So this is something that traditionally has been bipartisan. I mean, it used to be Republicans and Democrats, they love cutting those ribbons.

Q    Yes.

THE PRESIDENT:  And we’ve got a bunch of construction workers who aren’t working right now.  They’ve got the skills.  They want to get on the job.  It would have a huge impact on the economy not just now, but well into the future.  So I’m just going to keep on pushing Republicans to join with us, and let’s try to do it.

Part of it is -- what they’ll say is, we like infrastructure, but we don't want to pay for it.  And one of the things I’ve been trying to get across here is, is that we don't need a huge government, but we need government doing some basic things, and we should all agree on a sensible mechanism to go ahead and pay for it -- make sure we don't waste money, make sure we’re cutting down on permitting times and delays, but let’s go ahead and get it done.

Q    Would it be possible to do a modern WPA, almost like a America Peace Corps where kids get paid a decent wage, you give them food, and they fix up Detroit, they fix up other cities --  whatever -- they fix bridges?  I mean, when you travel this country, you see these great bridges and things that were built by -- and they have the plaque, the guys that built it in 1932, in 1931.

THE PRESIDENT:  And it was incredibly important for not just the economy in the ‘30s, we use it still -- Golden Gate Bridge, Hoover Dam.  It opened up opportunity for everybody.  The Interstate Highway System -- think of all the businesses that got created because we put that together.

So it’s possible.  The question is do we have the political will to do it.  And my argument to Congress has been, this is just like your house.  You can put off fixing the roof.  You can put off doing the tuckpointing.  You can put off replacing the old boiler.  But sooner or later, you’re going to have to fix it, and it’s going to be more expensive the longer you put it off.  When we’ve got unemployed folks right now, we should be putting them to work, and it would be good for the entire country.  (Applause.)

Q    And let me ask you about something I’m seeing.  Is it me, or do I see kind of bromance with you and John McCain?  (Laughter.)  I remember you two had that lovers’ quarrel for a while.  And, oh, now, you’re, oh -- well, you’re best friends.

THE PRESIDENT:  Well, you know that's how --

Q    What happened?

THE PRESIDENT:  That's how a classic romantic comedy goes, right?  (Laughter.)  Initially you’re not getting along, and then you keep on bumping into each other.  (Laughter.)  

Q    Yes, but what’s -- I mean, what changed?  Who saw the light?  (Laughter.)

THE PRESIDENT:  John McCain and I have a number of philosophical differences, but he is a person of integrity.  He is willing to say things regardless of the politics.  The fact that he worked hard with a group of Democratic and Republican senators on immigration reform; they passed a bill in the Senate that will make sure that folks who are here illegally have to pay back-taxes and pay a penalty and get to the back of the line, but over time have a pathway to citizenship, and make sure that we’re strengthening our borders.  He went ahead and passed that even though there are some questions in his own party.  So I think that he deserves credit for being somebody who is willing to go against the grain of his own party sometimes.  It’s probably not good for me to compliment him on television.

Q    Yes, yes.  (Laughter.)  Get a big head.

THE PRESIDENT:  But I think that he’s an example of a number of Republicans in the Senate, in the House, who want to be for something, not just be against everything.  (Applause.)  And the more that they can try to move in that direction, I think the better off we’ll be.

Q    Now, we’re going to take a break.  I want to talk about Hillary because I know you had lunch with her.

THE PRESIDENT:  Absolutely.

Q    My question -- my question when we come back, who asked who to lunch.  (Laughter.)  Don't answer.  Don't answer.  We’ll find out more with President Obama right after this.  (Applause.)

* * *

Q    (Applause.)  We are back with the President of the United States. 

You and Hillary had lunch last -- who invited who to lunch? I’m curious.

THE PRESIDENT:  I invited her.

Q    Okay.

THE PRESIDENT:  And we had a great time.  She had that post-administration glow.  (Laughter.)  You know, when folks leave the White House -- two weeks later, they look great.  (Laughter.)  But it was a wonderful conversation.  By the end of my first term, we had become genuinely close and I could not have more respect for her.  She was a great Secretary of State, and I'm  very, very proud of the work she did.  (Applause.)

Q    Did you notice her measuring the drapes or anything like that?  (Laughter.)  

THE PRESIDENT:  No.  Keep in mind, she’s been there before. 
Q    Right, that’s true.  That’s true.

THE PRESIDENT:  So she doesn’t have to measure them.

Q    So what’s the latest in health care?  What’s new?

THE PRESIDENT:  Well, on October 1st, people are going to be able to sign up if they don’t have health care.  If you’ve got health care, you don’t have to do anything.  The only thing that’s happened for people who have health care right now is, is that you’ve been able to benefit from the fact that we put in place a law so that insurance companies have to spend 80 percent of your premiums on health care, and if they spend it on administrative costs and high CEO salaries, they’ve got to send you a rebate.  And that’s been affecting people.  (Applause.)

If you’ve got a kid who has just graduated, doesn’t have a job with health care, they can stay on their parent’s plan.  That’s in place right now.  Free preventive care and free contraceptive care for young women and families -- all that stuff is in place now.  No lifetime limits.  (Applause.)

So a lot of consumer protections got put in place.  But on October 1st, if you don’t have health care right now, you can join what are called these marketplaces and you’ll be able to get lower-cost health care.  Here in California, it’s estimated it will be 20, 30 percent cheaper than what you’re already getting. And we’ll give you subsidies -- tax credits, essentially -- if you still can’t afford it. 

So you can go to healthcare.gov and right now you can pre-register essentially and start figuring out is this plan right for you.

Q    Well, I was able to get health care from -- the guys who worked at my shop for me are all over 50.  They never had health care.  And I was able to get it now because you can’t be turned down.  So thank you for that.

THE PRESIDENT:  You can’t be turned down because of a preexisting condition.  That’s part of what we’re going to be doing.  (Applause.)

Q    Something I thought was -- I thought you spoke very eloquently about the Trayvon Martin case and I could tell you were speaking from the heart.  And tell me about that.

THE PRESIDENT:  Well, I think all of us were troubled by what happened.  And any of us who were parents can imagine the heart ache that those parents went through.  It doesn’t mean that Trayvon was a perfect kid -- none of us were.  We were talking offstage -- when you’re a teenager, especially a teenage boy, you’re going to mess up, and you won’t always have the best judgment.  But what I think all of us agree to is, is that we should have a criminal justice system that’s fair, that’s just.  And what I wanted to try to explain was why this was a particularly sensitive topic for African American families, because a lot of people who have sons know the experience they had of being followed or being viewed suspiciously. 

We all know that young African American men disproportionately have involvement in criminal activities and violence -- for a lot of reasons, a lot of it having to do with poverty, a lot of it having to do with disruptions in their neighborhoods and their communities, and failing schools and all those things.  And that’s no excuse, but what we also believe in is, is that people -- everybody -- should be treated fairly and the system should work for everyone.  (Applause.)  And so what I’m trying to do is just --

Q    I agree. 

THE PRESIDENT:  -- make sure that we have a conversation and that we’re all asking ourselves are there some things that we can do to foster better understanding, and to make sure that we don’t have laws in place that encourage the kind of violent encounter that we saw there that resulted in tragedy.

Q    Let me ask you something -- you told a group of young people that broccoli was your favorite food.  (Laughter.)  Now, lying to voters is one thing; lying to children, that’s -- (laughter and applause) -- well, that is --

THE PRESIDENT:  Let me say this --

Q    Can you put your right hand on a Bible and say, “Broccoli” -- (laughter.)

THE PRESIDENT:  Let me say this -- I have broccoli a lot.  (Laughter.)  I mean, no, you can ask my staff. 

Q    Really?

THE PRESIDENT:  It is one of my staples.  Me and broccoli, I don’t know, we’ve got a thing going.  (Laughter.)

Q    Really? 

THE PRESIDENT:  It goes especially well with burgers and fries.

Q    Right, right.  (Laughter.)

THE PRESIDENT:  Absolutely.

Q    And did Michelle make a broccoli cake with broccoli icing?

THE PRESIDENT:  Well, I won’t go that far.

Q    Now, did the kids believe you or did they go, “Oh, come on.”

THE PRESIDENT:  No, they did kind of -- they looked at me.  (Laughter.)  They had their little pads and pencils, and they were all, “Really?”  (Laughter.)  “More than chips?”  (Laughter.)

But to Michelle’s credit, the Let’s Move initiative that she’s been involved with that has gotten so many folks all around the country doing stuff to help kids exercise and eat right.  For the first time in a long time, we’ve started to see some modest reduction in childhood obesity.  So I think it’s making a difference.  (Applause.)

Q    Well, that’s good.  Really proud of that. 

Mr. President, it’s been an honor.  I know you have to go. 

THE PRESIDENT:  It was nice to see you.

Q    Thank you so much. 

THE PRESIDENT:  Before we go, well, Jay, I know you’re very proud of your car collection.

Q    Yes.

THE PRESIDENT:  Well, there’s one piece that’s missing.

Q    Cool.

THE PRESIDENT:  This is the Beast. 

Q    The Beast!

THE PRESIDENT:  The one I drive in.  (Applause.)

Q    Oh, look at that.  My friend, Ed Wellburn, designed that car.  Will you sign the roof?

THE PRESIDENT:  I will sign the roof.

Q    Oh, cool.  (Laughter.)

THE PRESIDENT:  Now, the doors are heavy, so when you’re getting in you may need a little help.  (Laughter.)

Q    I assume the real car will be at my garage after the show.  (Laughter.)

THE PRESIDENT:  There you go, Jay.

Q    Very good. 

THE PRESIDENT:  Thank you so much.

Q    Mr. President, a pleasure and an honor, sir. 

THE PRESIDENT:  I appreciate it.

Q    Thank you very much.  (Applause.) 

END
5:16 P.M. PDT

President Obama Speaks on Restoring Security to Homeownership

August 06, 2013 | 30:25 | Public Domain

President Obama lays out his ideas for strengthening the housing market and ensuring responsible middle class families have access to affordable mortgages and refinancing, as well as his plan for building a more durable and fair system that promotes the American Dream of homeownership, while preventing the nightmare of another crisis.

Download mp4 (1147MB) | mp4 (73MB)

Read the Transcript

Remarks by the President on Responsible Homeownership

Desert Vista High School
Phoenix, Arizona

1:00 P.M. MST

THE PRESIDENT:  Hey!  Hello, Phoenix!  (Applause.)  Hello, Arizona!  (Applause.)  It is --

AUDIENCE MEMBER:  We love you, Obama!

THE PRESIDENT:  I love you back.  It is good to be here.  (Applause.) 

I want to say thank you to the Thunder for hosting us here today.  (Applause.)  Well, we are so glad to be here.  I want you to give it up for somebody who’s been fighting for homeowners and working families every single day, who’s with me today -- Secretary Shaun Donovan, Secretary of HUD.  There he is right there.  Give him a big round of applause.  (Applause.)  We’ve got Congressman Ed Pastor who’s here as well.  (Applause.)  We’ve got your Mayor, Greg Stanton, here.  (Applause.)  Doing an outstanding job.  And to all the mayors and state legislators and tribal leaders who are here today, thank you.  (Applause.) 

Give Jorge a big round of applause for his introduction.  (Applause.)  To your superintendent, Dr. Kenneth Baca.  (Applause.)  Your principal, Dr. Anna Battle.  (Applause.)  And I appreciate everybody at Desert Vista for having me here today.  (Applause.)  It is good to see the students are pretty enthusiastic about being back in school.  (Laughter.)  I’m not sure I would have been that enthusiastic starting on the 6th.  (Laughter.) 

And I know this isn’t your typical school -- second day of school.  So I want to give a special shout-out to the new seniors, class of 2014.  (Applause.)  You are aware that you’re not finished yet.  (Laughter.)  Senior year, that’s sometimes tempting.  I want you all to stay focused.

Over the past couple weeks, I have been --

AUDIENCE MEMBER:  Happy birthday, Mr. President!

THE PRESIDENT:  Thank you very much.  Thank you.  (Applause.)  It was my birthday two days ago.  (Laughter.)  Got some singers here.

AUDIENCE:  Happy birthday to you, happy birthday to you, happy birthday, Mr. President.  (Applause.)

THE PRESIDENT:  Thank you.  Thank you.  Thank you.  (Applause.)  I am now 52, and Michelle says that I don’t look a day over 51.  (Laughter.)

So over the last few weeks, I’ve been visiting towns all across the country, talking about what we need to do to secure a better bargain for the middle class -- a national strategy to make sure that everybody who works hard has a chance to succeed in the 21st century economy.

And I think people in Arizona especially understand the challenges that are out there, because for the past four and a half years, together, we fought our way back from a devastating recession that cost millions of jobs for Americans.  A lot of folks lost their homes; a lot of folks lost their savings.  And what the recession showed was the long erosion of middle-class security that had been taking place for decades. 

But we fought back.  We took on a broken health care system. We took on a housing market that was in free fall.  We invested in new technologies to reverse our addiction to foreign oil.  We changed a tax code that had become tilted a little bit too much in favor of the wealthiest Americans at the expense of working families.  (Applause.)  We saved the auto industry.  We’ve now got GM that plans to hire a thousand new workers right next door in Chandler to make sure we’re building some of the best cars in the world right here in the United States of America.  (Applause.) 

Our businesses have created 7.3 million new jobs over the past 41 months.  We now sell more products made in America to the rest of the world than ever before.  Our exports are way up.  We produce more renewable energy than ever before, more natural gas than anybody else.  Health care costs have been growing at the slowest rate in 50 years.  And our deficits are coming down at the fastest rate in 60 years.  So we’re making progress.  (Applause.)

So thanks to the efforts of a lot of people like you, we’ve cleared away the rubble of the financial crisis.  We’re starting to lay the foundation for more stable, more durable economic growth.  But as any middle-class family will tell you, we’re not yet where we need to be.  Because even before the crisis hit, we had lived through a decade where a few at the top were doing better and better, but most families were working harder and harder just to get by. 

And reversing this trend should be -- must be -- Washington’s highest priority.  It’s my highest priority.  (Applause.)  I want to make sure that in America, it doesn’t matter what you look like, where you come from, who you love -- you should be able to make it when you try.  You should be able to make it.  (Applause.) 

Now, unfortunately, for the last year or so, we’ve had an endless parade of distractions and political posturing and phony scandals that shift focus away from what do we need to do to shore up middle-class families and create ladders of opportunity for folks to get into the middle class.  And as Washington heads towards another budget debate, the stakes could not be higher. 

And that’s why I’m traveling around, laying out my ideas for how we have to build the cornerstones of what it means to be middle class:  a good job with good wages; a home to call your own; a good education;  affordable health care that’s there for you when you get sick; a secure retirement even if you’re not rich; the opportunity -- the ladders of opportunity for people to earn their way into the middle class, to work their way out of poverty.  Those are the elements that I think all of us believe in, but right now we're not delivering as much as we should on those promises.

Now, last Tuesday, I went to Tennessee to talk about the first cornerstone, which is how do we make sure that we're creating good middle-class jobs here in the United States of America.  Today I've come to Phoenix to talk about the second component, which is the most tangible cornerstone that lies at the heart of the American Dream, at the heart of middle-class life -- and that's the chance to own your own home.  (Applause.) The chance to own your own home.   

We've got a lot of young people here who are thinking about college, they're going to get a higher education, they're going to find a job, they're going to find somebody they love, they're going to want to own a home.  And the reason they will is because a home is the ultimate evidence that here in America, hard work pays off, that responsibility is rewarded. 

I think about my grandparents’ generation.  When my grandfather served in World War II, he fought in Patton's Army -- when he got back, this country gave him a chance to go to college on the G.I. Bill, but it also gave him the chance to buy his first home with a loan from the FHA.  To him, and to generations of Americans before and since, a home was more than just a house. It was a source of pride and a source of security.  It was a place to raise kids, to put down roots; a place where you could build up savings for college, or to start a business, or to retire with some security. 

And buying a home required responsibility on everybody’s part.  You had to save up to buy a home.  And then banks were supposed to give you a fair deal, with terms you could understand, and buyers were supposed to live within their means and make sure that they could make their payments.  So in that earlier generation, houses weren’t for flipping around, they weren’t for speculation -- houses were to live in, and to build a life with. 

And unfortunately, over time, responsibility too often gave way to recklessness.  You had reckless lenders who sold loans to people they knew couldn’t afford them.  And let's face it, we also had some reckless buyers who knew they couldn’t afford them and still took out loans.  And all this created a housing bubble. And especially in some places like Arizona, it was devastating  when that bubble finally burst -- triggered a recession.  Millions of Americans who had done everything right were hurt badly by the actions of other people.  Housing prices plummeted.

By the time I took office, home values had fallen almost 20 percent from the year before.  New housing starts had fallen nearly 80 percent from their peak.  Hundreds of thousands of construction workers had lost their jobs.  A record number of people were behind on their mortgage payments.  And a lot of people here in Phoenix, they saw that devastation.  This was part of Ground Zero for the housing bubble bursting.

So less than a month after I took office, I came here to Arizona and I laid out steps to stabilize the housing market and help responsible homeowners get back on their feet.  And the truth is it's been a long, slow process.  The housing market is so big that it was going to take some time to heal when it got hurt that badly.  It's taken longer than any of us would like.  But during that time, we helped millions of Americans save an average of $3,000 each year by refinancing at lower rates.  We helped millions of responsible homeowners stay in their homes, which was good for their neighbors because you don't want a bunch of foreclosure signs in your neighborhood. 

Where Congress wouldn’t act, we went ahead and acted, so over the past few years, we had the Department of Justice stand up for buyers who had been discriminated against or conned by predatory lending.  And we won a settlement that gave more money to victims of discrimination in one year than in the previous 23 years combined.  (Applause.)   

We worked with states to force big banks to repay more than $50 billion to more than 1.5 million families -- largest lending settlement in history.  (Applause.)  We extended the time that folks who had lost their jobs could delay their payment on their mortgages while they kept looking for work.  We cracked down on the bad practices that led to the crisis in the first place.  I mean, you had some loans back there in the bubble that were called “liar’s loan.”  Now, something that's called a liar's loan is probably a bad idea.  (Laughter.) 

So because of all these actions we've been taking, our housing market is beginning to heal.  Home prices are rising at the fastest pace in seven years.  Sales are up nearly 50 percent. Construction is up nearly 75 percent.  New foreclosures are down by nearly two-thirds.  Millions of families have been able to come up for air -- they’re no longer underwater on their mortgages.  (Applause.)   

And just like the crisis hit Phoenix very hard, thanks to some great leadership here locally, Phoenix has also led one of the biggest comebacks in the country.  (Applause.)  So you should be proud of what you've done here.  Home prices in Phoenix have risen by nearly 20 percent over the last year.  New home sales are up by more than 25 percent.

This morning, right before I came here, I visited Erickson Construction -- (applause.)  We've got some Erickson folks here. And they were explaining how right when the bubble hit, Erickson shrank to less than a hundred workers.  Today they're employing 580 people -- and they’re hiring even more people -- (applause)  -- because the housing market is bouncing back.   

So that's one of the things about housing.  It's not just important for the person who owns the house; our economy is so impacted by everything that happens in housing.  Consumers feel better when their home values are in a better place, so they're more willing to spend.  A lot of people who want to start a business, their savings may be locked up in their house.  Construction workers, contractors, suppliers, carpet makers, all these folks are impacted by the housing industry.

So we've made progress, and that's helped to move the economy forward.  But we've got to build on this progress.  We're not where we need to be yet.  We've got to give more hardworking Americans the chance to buy their first home.  (Applause.)  We have to help more responsible homeowners refinance their mortgages, because a lot of them still have a spread between the rates they're paying right now on their mortgage and what they could be getting if they were able to refinance. 

And we’ve got to turn the page on this kind of bubble-and-bust mentality that helped to create this mess in the first place.  (Applause.)  We got to build a housing system that is durable and fair and rewards responsibility for generations to come.  That's what we’ve got to do.  (Applause.)

So I’ve already put forward a bunch of ideas that will help accomplish that.  And, look, the fact of the matter is Congress hasn’t enacted all of them, so I’d like you to encourage members of Congress to take some of these actions.  (Applause.)

But like the other actions that we’ve taken, these will not help the neighbors down the street who bought a house that they couldn’t afford, and then walked away from it and left a foreclosed home behind.  We don't want to help speculators who bought multiple homes just to make a quick buck. 

What we want to do is put forward ideas that will help millions of responsible, middle-class homeowners who still need relief.  And we want to help hardworking Americans who dream of owning their own home fair and square, have a down payment, are willing to make those payments, understand that owning a home requires responsibility.  And there are some immediate actions we could take right now that would help on that front, that would make a difference.  So let me just list a couple of them. 

Number one:  Congress should pass a good, bipartisan idea to allow every homeowner the chance to save thousands of dollars a year by refinancing their mortgage at today’s rates.  (Applause.) We need to get that done.  We’ve been talking about it for a year and a half, two years, three years.  There’s no reason not to do it.  (Applause.) 

Step number two:  Now that we’ve made it harder for reckless buyers to buy homes that they can’t afford, let’s make it a little bit easier for qualified buyers to buy the homes that they can afford.  (Applause.)  So Shaun Donovan has been working with the finance industry to make sure we’re simplifying overlapping regulations; we’re cutting red tape for responsible families who want to get a mortgage but keep getting rejected by the banks.  We need to give well-qualified Americans who lost their jobs during the crisis a fair chance to get a loan if they’ve worked hard to repair their credit.

And step three is something that you don’t always hear about when it comes to the housing market, and that is fixing our broken immigration system.  It would actually help our housing market.  (Applause.)

It’s pretty simple:  When more people buy homes and play by the rules, home values go up for everybody.  And according to one recent study, the average homeowner has already seen the value of their home boosted by thousands of dollars just because of immigration.  And the good news is, with the help of your Senators, John McCain and Jeff Flake, the Senate has already passed a bipartisan immigration bill.  It’s got the support of CEOs and labor and law enforcement.  (Applause.)   This could help homeownership here.

So I want you to encourage Republicans in the House of Representatives to stop dragging their feet.  Let’s go ahead and get this done.     

Step number four:  We should address the uneven recovery by rebuilding the communities hit the hardest by the housing crisis, including many right here in Arizona.  Let’s put construction back -- construction workers back to work repairing rundown homes, tearing down vacant properties so that the value of homes in those surrounding areas start picking up.  We can put people to work right now and improve the remaining housing stock that's out there.  (Applause.)  Places that are facing a longer road back from the crisis should have their country’s help to get back on their feet. 

Step five:  We should make sure families that don’t want to buy a home or can’t yet afford to buy one still have a decent place to rent.  (Applause.)   It’s important for us to encourage homeownership, but a lot of people rent and there’s nothing wrong with renting.  And we got to make sure that we are creating affordable opportunities when it comes to rental properties.

In the run-up to the crisis, banks and governments too often made everybody feel like they had to own a home, even if they weren’t ready and didn't have the payments.  That’s a mistake we should not repeat.  Instead, let’s invest in affordable rental housing.  Let’s bring together cities and states to address local barriers that drive up rents for working families.  (Applause.)  

So if we help more Americans refinance their homes, if we help qualified families get a mortgage, we reform our immigration system, we rebuild the hardest-hit communities, we make sure that folks have a decent place to rent if they're not yet able to buy -- all these steps will give more middle-class families the chance to either buy their own home now or eventually buy their own home.  It's going to give more relief to responsible homeowners.  It gives more options to families who aren’t yet ready to buy.  All that is going to improve the housing market and will improve the economy.

But -- and this is the last key point I want to make -- as home prices rise, we can’t just re-inflate another housing bubble.  I hope everybody here in Arizona learned some hard lessons from what happened.  Housing prices generally don't just keep on going up forever at the kind of pace it was going up.  It was crazy.  So what we want to do is something stable and steady. And that's why I want to lay a rock-solid foundation to make sure the kind of crisis we went through never happens again.  We've got to make sure it doesn't happen again.  (Applause.)  

And one of the key things to make sure it doesn't happen again is to wind down these companies that are not really government, but not really private sector -- they're known as Freddie Mac and Fannie Mae.  For too long, these companies were allowed to make huge profits buying mortgages, knowing that if their bets went bad, taxpayers would be left holding the bag.  It was “heads we win, tails you lose.”  And it was wrong.  And along with what happened on Wall Street, it helped to inflate this bubble in a way that ultimately killed Main Street.

So the good news is, right now there’s a bipartisan group of senators working to end Fannie and Freddie as we know them.  And I support these kinds of reform efforts.  And they're following four core principles for what I believe this reform should look like. 

First, private capital should take a bigger role in the mortgage market.  I know that sounds confusing to folks who call me a socialist -- I think I saw some posters there on the way in. (Laughter.)  But I actually believe in the free market.  And just like the health care law that we put in place, Obamacare -- (applause) -- which, by the way, if you don't have health insurance or you're buying it at exorbitant rates on the individual market, starting on October 1st, you can join a marketplace and be part of a pool that gives you much lower premiums, saves you a lot of money.  (Applause.)

But in the same way that what we did with health care was to set up clear rules for insurance companies to protect consumers, make it more affordable, but still built on the private marketplace, I believe that our housing system should operate where there's a limited government role and private lending should be the backbone of the housing market.  And that includes, by the way, community-based lenders who view their borrowers not as a number, but as a neighbor.  So that's one principle.

A second principle is we can't leave taxpayers on the hook for irresponsibility or bad decisions by some of these lenders or Fannie Mae or Freddie Mac.  (Applause.)  We've got to encourage the pursuit of profit, but the era of expecting a bailout after you pursue your profit and you don't manage your risk well -- well, that puts the whole country at risk.  And we're ending those days.  We're not going to do that anymore.  (Applause.)

The third principle is we should preserve access to safe and simple mortgage products like the 30-year, fixed-rate mortgage.  That’s something families should be able to rely on when they're making the most important purchase of their lives.  (Applause.)  

Number four, we've got to keep housing affordable for first-time homebuyers -- like all these young people.  When they're ready to buy a house, we've got to make sure it's affordable.  Families who are working to climb their way into the middle class, we've got to do what we can to make housing affordable.  And that means we've got to strengthen the FHA so it gives today’s families the same kind of chance it gave my grandparents to buy a home, and it preserves those rungs on the ladder of opportunity. 

And we've got to support, as I said, affordable rental housing.  And, by the way, we've also got to keep up our fight against homelessness.  (Applause.)  The Mayor of Phoenix has been doing a great job here in Phoenix on that front.  We've got to continue to improve it.  (Applause.)   

Since I took office, we helped bring one in four homeless veterans off the streets.  (Applause.)  We should be proud of that.  Here in Phoenix, thanks to the hard work of everyone from Mayor Stanton to the local United Way to US Airways, you’re on track to end chronic homelessness for veterans, period, by 2014. (Applause.) 

But we've got to keep going, because nobody in America, and certainly no veteran, should be left to live on the streets.  (Applause.) 

So here's the bottom line:  Put all these principles together, that's going to protect our entire economy and it will improve the housing market not just here in Phoenix, but throughout the state and throughout the country. 

We're also going to need to make sure, though, that we're protecting individual homeowners.  We've got to give them the tools that they can protect themselves.  So we've got a Consumer Finance Protection Bureau that we created.  (Applause.)  And it's laying down new rules of the road that everybody can count on when they’re shopping for a mortgage.  They’re designing a new, simple mortgage form that will be in plain English, so you can actually read it without a lawyer -- (applause) -- although, you may still want a lawyer obviously.  I'm not saying you don't.  I'm just saying you'll be able to read it.  (Laughter.)  There won't be a lot of fine print.  That way you know before you owe. (Laughter and applause.) 

And the Senate finally confirmed Richard Cordray as the head of this -- head watchdog for the CFPB.  (Applause.)  So he's out there aggressively protecting consumers and homeowners. 

When it comes to some of the other leaders we need to look out for the American people, the Senate still has a job to do.  Months ago, I nominated a man named Mel Watt to be our nation’s top housing regulator.  He is an outstanding member of Congress. And during that time, he was on the Housing Committee -- worked with banks, worked with borrowers to protect consumers, to help responsible lenders provide credit.  He is the right person for the job.  Congress and the Senate should give his nomination an up or down vote without any more obstruction or delay.  We don't have time for those kinds of games.  (Applause.) 

So I want to be honest with you.  No program or policy is going to solve all the problems in a multi-trillion dollar housing market.  The housing bubble went up so high, the heights it reached before it burst were so unsustainable, that we knew it was going to take some time for us to fully recover.  But if we take the steps that I talked about today, then I know we will restore not just our home values, but also our common values.  We’ll make owning a home a symbol of responsibility, not speculation -- a source of security for generations to come, just like it was for my grandparents.  I want it to be just like that for all the young people who are here today and their children and their grandchildren.  (Applause.)

And if we stay focused on middle-class security and opportunities to get into the middle class, if we take the strategy that I'm laying out for the entire economy -- for jobs and housing and education, health care, retirement, creating ladders of opportunity -- then we will secure that better bargain for all Americans, where hard work is once again rewarded with a shot at a middle-class life, which means more Americans will know the pride of that first paycheck.  More Americans will know the satisfaction of flipping the sign to “Open” on their own business.  More Americans will know the joy of scratching the child’s height on the door of their new home -- with pencil, of course.  (Laughter.) 

We can do all this if we work together.  And it won’t be easy.  But if we take just a few bold steps -- and if Washington will just end the gridlock, set aside the slash-and-burn partisanship -- (applause) -- actually try to solve problems instead of scoring political points, our economy will grow stronger a year from now, five years from now, 10 years from now. (Applause.) 

And as long as I've got the privilege to serve as your President, that's what I'm going to be fighting for. 

Thank you very much, everybody.  God bless you.  (Applause.)

                        END           1:35 P.M. MST

 

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