CONGRESSIONAL RECORD—HOUSE H1678

Document Sample
CONGRESSIONAL RECORD—HOUSE H1678 Powered By Docstoc
					                                            H1678                                             CONGRESSIONAL RECORD — HOUSE                                                      March 10, 2011
                                            jobs. After 10 weeks of controlling the                 is money that we are having to borrow                  in the greatest of shape. It’s like most
                                            House, Republicans have no plan to                      from countries around the world.                       government programs. Eight billion
                                            create jobs, no plan to spur our eco-                     It wasn’t long ago that our budget                   dollars for a program to allow home-
                                            nomic growth.                                           deficit for the entire year was only $220              owners who are underwater on their
                                              Instead of listening to the American                  billion. But thanks to a Washington                    mortgages to get a reduction in their
                                            people and making jobs their number                     spending binge that has occurred over                  mortgage.
                                            one priority, Republicans passed a                      the last 4 years, now our monthly                        Now, not all can take advantage of
                                            budget that will result in 700,000 new                  budget deficit is larger than our annual               this program. There are what the
                                            layoffs. And what’s the response? So be                 deficit used to be. In fact, February’s                American people have come to know as
                                            it. Taking food out of the mouths of                    budget deficit was the largest monthly                 winners and losers. With all govern-
                                            hungry children by cutting WIC? So be                   budget deficit in the history of the                   ment programs, it seems that some
                                            it. Dropping 218,000 kids from the Head                 United States. Larger in real dollars                  benefit, but 99 percent of Americans
                                            Start Program? So be it. Declaring a                    than when we were fighting for our ex-                 don’t benefit. And that’s what’s hap-
                                            war on women by eliminating family                      istence during World War II. Higher                    pened here. The administration said
                                            planning services and punishing the                     than the Civil War. And that has hap-                  we’ll literally have hundreds of thou-
                                            one in five women across America who                    pened even though government receipts                  sands of people that will line up for
                                            visit a Planned Parenthood clinic? So                   posted an increase this February from                  this program. But because lenders and
                                            be it. Denying the extension of unem-                   last February.                                         borrowers are getting together and
                                            ployment benefits to those who’ve                         Our national debt in the last 4 years                working out, or some homeowners are
                                            reached that 99-week limit and are                      has doubled. Now think of that. In the                 deciding that they can’t afford their
                                            struggling to make ends meet? So be                     first 220 years of our existence, we in-               mortgage and they’re selling their
                                            it.                                                     curred a national debt which, in the                   houses, 42 American families have been
                                              And now denying homeowners to stay                    last 4 years, we’ve doubled. And by the                assisted by this program.
                                            in their homes, the help that they                      end of this administration, unless we                    Now, this is a program that author-
                                            need, by eliminating programs to pre-                   take action today—action the Amer-                     izes $8 billion. And $50 million has ac-
                                            vent foreclosures? So be it.                            ican people asked us to take last No-                  tually been set aside and disbursed. In
                                              The Republicans No Jobs, their So Be                  vember—we will have tripled the def-                   fact, the budget that the President has
                                            It agenda, it’s a failure on all counts.                icit.                                                  submitted has a $50 million subtraction
                                                             f                                        In 7 years or a little less than 7 years,            there for a program that’s helped 42
                                                                                                    we will have tripled our deficit.                      families; $50 million, 42 families. But
                                                      GENERAL LEAVE                                   That’s why we’re here on the floor                   think about this. How many families
                                              Mr. BACHUS. Mr. Speaker, I ask                        today, because the American people                     are underwater? How many American
                                            unanimous consent that all Members                      have sent us a message. They said,                     families have a home where they owe
                                            may have 5 legislative days within                      ‘‘Don’t spend us into a financial obliv-               more than the home is worth? Twelve
                                            which to revise and extend their re-                    ion. We have to balance our own budg-                  million, somewhere above 11 million—
                                            marks on H.R. 830 and to insert extra-                  ets at home. We expect the same from                   let’s say 12 million.
                                            neous material thereon.                                 those that we send to Washington to                      That means that even if this program
                                              The SPEAKER pro tempore (Mr.                          represent us.’’                                        could have helped 100,000 that it would
                                            STEARNS). Is there objection to the re-                   The bill that we’re debating today is                help 1 out of every 120 American fami-
                                            quest of the gentleman from Alabama?                    an example of two things: too many                     lies. One out of 120. And yes, some gov-
                                              There was no objection.                               government programs—spending pro-                      ernment employee sitting behind a
                                                             f                                      grams—and too many ineffective gov-                    desk would say you are eligible, you
                                                                                                    ernment programs. It is a poster child                 can apply, you win. At the most, all
                                                 FHA REFINANCE PROGRAM                                                                                     the programs we’re going to consider
                                                                                                    for both.
                                                      TERMINATION ACT                                                                                      this week and next week, which if we
                                                                                                      It’s also an example of a broken
                                              The SPEAKER pro tempore. Pursu-                       promise. In 2008, during our financial                 act, will save the American taxpayers
                                            ant to House Resolution 150 and rule                    meltdown, which has led to a recession                 billions and billions and billions of dol-
                                            XVIII, the Chair declares the House in                  and record unemployment, we prom-                      lars, all of them will benefit only an es-
                                            the Committee of the Whole House on                     ised the American people that those                    timated 500,000 families.
                                            the state of the Union for the consider-                steps that were taken, that that money                   As the Inspector General has said,
                                            ation of the bill, H.R. 830.                            that was loaned, would be paid back to                 about 50 to 60 percent of those families,
                                                                  b 1225                            the national Treasury.                                 even if it goes to families—as we found
                                                                                                                                                           out yesterday in a hearing, a lot of it is
                                                   IN THE COMMITTEE OF THE WHOLE                                     b 1230
                                                                                                                                                           going to nonprofit groups. In Los Ange-
                                              Accordingly, the House resolved                         I am happy to say that today most of                 les alone, more went to a nonprofit
                                            itself into the Committee of the Whole                  the money that was lent to what some                   group than went to the county govern-
                                            House on the State of the Union for the                 have called a Wall Street bailout, what                ment. But we are only helping 1 out of
                                            consideration of the bill (H.R. 830) to                 the American people certainly call a                   22 families. What about those other 21
                                            rescind the unobligated funding for the                 bailout, it has been paid back with in-                families? They’re making their mort-
                                            FHA Refinance Program and to termi-                     terest, but it’s not found its way into                gage payment, and they’re not asking
                                            nate the program, with Mr. BASS of                      the national Treasury. It’s not been                   the government for help.
                                            New Hampshire in the chair.                             paid back despite promises to the                        It seems that we’re in a country
                                              The Clerk read the title of the bill.                 American people on this very floor of                  where the majority of Americans
                                              The CHAIR. Pursuant to the rule, the                  this House a little less than 3 years                  aren’t underwater; about one-fourth
                                            bill is considered read the first time.                 ago.                                                   are. But out of all those, we’re starting
                                              The gentleman from Alabama (Mr.                         Instead, that money has been di-                     programs to help in this case 42 fami-
                                            BACHUS) and the gentleman from Mas-                     verted into all sorts—and that’s the                   lies, in another case 200,000 families.
                                            sachusetts (Mr. FRANK) each will con-                   TARP bailout money—it’s been used                      And we’re asking every American fam-
                                            trol 30 minutes.                                        for other social programs, just what                   ily, and we’re asking their government,
                                              The Chair recognizes the gentleman                    many warned on the floor of this House                 to start programs when we don’t have
                                            from Alabama.                                           would happen. It’s turned into a slush                 enough money to finance the programs
tjames on DSKG8SOYB1PROD with HOUSE




                                              Mr. BACHUS. Mr. Chair, I yield my-                    fund. And one of the programs that it                  we have.
                                            self such time as I may consume.                        has funded is a well-intentioned pro-                    But more than that, I put a photo-
                                              Mr. Chairman, just this week the                      gram in which $8 billion, that’s 8,000                 graph up. And this is the bottom line
                                            American people received some very                      million dollars, has been designated for               on this program. Fifty million dollars
                                            sobering news. The budget deficit for                   the FHA Refinance Program. Now, the                    has been put into a fund, and $8 billion
                                            the month of February alone is $223 bil-                FHA program today, the reserves are                    has been authorized for this program.
                                            lion. That is $8 billion every day. That                low. And that’s a program that is not                  And it’s money we don’t have. And it’s



                                      VerDate Mar 15 2010   03:23 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00010   Fmt 7634   Sfmt 0634   E:\CR\FM\K10MR7.018   H10MRPT1
                                            March 10, 2011                                    CONGRESSIONAL RECORD — HOUSE                                                                   H1679
                                            money we won’t pay back. It’s those                                       b 1240                                  Now let me address a couple of mis-
                                            children in that photograph. It’s our                     Now, that’s money. But do you know                   takes the gentleman made specifically
                                            constituents’ children and grand-                       what it is? It’s much less—and the gen-                about this program:
                                            children that will have to pay that                     tleman from Alabama voted during                          The $50 million is not being spent on
                                            back.                                                   that same period to send money to the                  40 people; $50 million hasn’t, in fact,
                                              Our national debt is $12 trillion—$14                 cotton farmers of Brazil. We do have a                 been spent at all. Not a penny has been
                                            trillion. You memorize a number, and                    debate about the deficit here, but it’s                spent. The $50 million was reserved out
                                            in a few months it’s irrelevant. It’s no                not about whether to reduce it. It’s                   of TARP money to cover losses if they
                                            longer the real number. Robert Gates                    how.                                                   were to occur. The CBO does say, yes,
                                            on January 6, in outlining the Penta-                     The gentleman from Alabama, along                    if this program is fully funded and if it
                                            gon’s budget, said, ‘‘This country’s dire               with the majority of Republicans vot-                  gets the participation they expect, the
                                            fiscal situation and the threat it poses                ing, defeated an amendment—with                        total amount of losses will be $175 mil-
                                            to American influence and credibility                   some Democrats, although the major-                    lion, not $8 billion. The $8 billion was a
                                            around the world will only get worse                    ity of us voted for the amendment—to                   resurrection on the TARP for technical
                                            unless the U.S. Government gets its fi-                 stop sending American tax dollars to                   reasons. The CBO says, full scale, this
                                            nances in order.’’ Well, who will get it                subsidize the cotton farmers of Brazil.                will cost $175 million—again, less than
                                            in order? It has to be the President and                In the 2-year period during which we                   the gentleman of Alabama wants to
                                            this Congress. That’s his quote Janu-                   will be dealing with this program: Bra-                send during that period to Brazilian
                                            ary 6.                                                  zilian cotton farmers—$300 million.                    cotton farmers.
                                              The Joint Chiefs of Staff say that our                Americans facing foreclosure—$175 mil-                    Now, as to the people who vote con-
                                            national debt is a national security                    lion. The gentleman from Alabama has                   sistently, as some do, to cut money for
                                            problem. But the message just doesn’t                   a very odd way of saving money on the                  Afghan infrastructure or for Iraqi secu-
                                            seem to get to this floor, because today                deficit.                                               rity forces or for Brazilian cotton
                                            people will come to this floor and say,                   Then he says we have winners and                     farmers or for American cotton farm-
                                            oh, if we get rid of this program every-                losers. Well, among the big winners                    ers or for other recipients of subsidy
                                            body that can’t pay their mortgage                      under the Republican budget and with                   who then are opposed to this program,
                                            needs to call their Congressman and                     the majority of their votes are the                    I honor their integrity. I disagree with
                                            say you need to pay my mortgage, or                     farmers who receive more than $250,000                 them in some ways, but I honor it. Yet
                                            there needs to be a government pro-                     per year in subsidy. Whatever happened                 I cannot accept the lecture on fiscal re-
                                                                                                    to free enterprise? Whatever happened                  sponsibility from someone who votes to
                                            gram to pay my mortgage. Well, let’s
                                                                                                    to standing on your own? An amend-                     lavish money in wasteful ways on Af-
                                            not kid ourselves. Those children,
                                                                                                    ment was offered to limit to a measly                  ghan cities but begrudges it in Amer-
                                            that’s who we are obligating. Last year
                                                                                                    $250,000 the subsidy any one entity                    ican cities; who would send it for Iraqi
                                            we could stand on the floor and say
                                                                                                    could get. The gentleman from Ala-                     police officers but not for American po-
                                            that they each come into this world
                                                                                                    bama voted ‘‘no.’’ That was too harsh.                 lice officers; who would send it to cot-
                                            owing $35,000. Today it’s $45,000.
                                                                                                    The gentleman from Alabama is for un-                  ton farmers and to other farmers in
                                              Today we’re going to have to make
                                                                                                    limited amounts of subsidy to go to a                  America but not to struggling home-
                                            some hard choices for them, for our
                                                                                                    handful of farmers—but no—we can’t                     owners.
                                            children and our grandchildren. And                                                                               This program has started slowly. By
                                                                                                    spare much less than that over the
                                            oh, yeah, these programs do some good.                                                                         the way, there’s a great contradiction
                                                                                                    time period because, in the time period
                                            Although for most homeowners who                                                                               between saying it has only helped 40
                                                                                                    of this bill, that would have cost $200
                                            can’t pay their mortgages and they’re                   million, or $100 million a year.                       people and that it’s going to cost $8 bil-
                                            given a reduction, it doesn’t work. The                   Then the gentleman quoted the Sec-                   lion. If the pay starts to increase, it
                                            default rate in most of these programs                  retary of Defense, that we should pay                  won’t cost the full $175 million, but
                                            is over 50 percent. One of the programs                 more attention to the Secretary of De-                 here’s what we hope:
                                            we will consider tomorrow, out of                       fense because he, along with many Re-                     There are negotiations going on now
                                            every dollar of taxpayer money lent, 98                 publicans, voted to force money on the                 to allow people the benefit of a refi-
                                            percent is never repaid. Never repaid.                  Secretary of Defense that he didn’t                    nancing. The gentleman says it’s not
                                            How can a country continue to func-                     want. He voted to fund the programs                    going to take care of everybody. Of
                                            tion like that? What kind of future do                  the Secretary of Defense didn’t want.                  course not. There is not one program
                                            these children have?                                    He’s trying to get some reprogramming                  that is fit for everybody. There are a
                                              I reserve the balance of my time.                     now, but the Republican Appropria-                     series of programs for people in dif-
                                              Mr. FRANK of Massachusetts. I yield                   tions Committee won’t allow it. By the                 ferent circumstances, and this is one
                                            myself such time as I may consume.                      way, I don’t agree with the Secretary                  for people who could benefit from a
                                              First, for people trying to follow this,              of Defense fully on this either.                       lower interest rate and a refinancing
                                            the gentleman from Alabama has con-                       I disagree with the gentleman from                   but who are under water and can’t do
                                            fused several programs in this con-                     Alabama and the Secretary of Defense                   it. It induces the financial institutions
                                            versation, most of which aren’t up                      because they don’t want to spend $175                  to do it. It’s voluntary. If financial in-
                                            today. We are dealing with one at a                     million in 2 years trying to deal with                 stitutions find this is unreasonable,
                                            time. He talked about money that went                   foreclosures in American cities. In-                   they won’t do it.
                                            to Los Angeles and went to a group in-                  stead, they want to send more than                        There is an effort going on now to
                                            stead of the county. That has zero to                   twice that amount to Afghanistan for                   achieve a negotiated settlement in-
                                            do with today’s program. Zero. And in                   its infrastructure. You talk about inef-               volving the services of financial insti-
                                            fact, it doesn’t have to do with indi-                  ficiency. Does anyone think that Presi-                tutions, many of which are quite cul-
                                            vidual homeowners. It’s a program that                  dent Karzai and his administration are                 pable and have misbehaved in this
                                            gives aid to municipalities, which we                   going to spend the $400 million my                     process, so these are not innocent vic-
                                            will be debating later, probably next                   friend from Alabama has voted to send                  tims being shaken down. The Attor-
                                            week, which gives aid to municipalities                 toward Afghan infrastructure projects                  neys General of every State, Repub-
                                            to deal with property that they have                    better than we would spend it here?                    lican and Democrat, and the regulators
                                            been stuck with. So it has nothing to                     How about $1.2 billion for the Iraqi                 are trying to come up with a solution.
                                            do with today.                                          security forces at a time when Amer-                      This is the other point that gets lost
                                              But the gentleman does make a good                    ican municipalities are having to lay                  in the rhetoric when the gentleman
tjames on DSKG8SOYB1PROD with HOUSE




                                            point about the deficit. Unfortunately,                 off police officers and firefighters and               who was so eager to send money to
                                            he does not put his votes where his                     other essential employees? The gen-                    Brazilian cotton farmers begrudges a
                                            rhetoric is. The CBO says that this pro-                tleman from Alabama voted to send                      small amount going to Americans fac-
                                            gram is going to cost not $8 billion, but               $1.2 billion to the Iraqi security forces.             ing foreclosure, which is that the fore-
                                            if it’s fully operational over a 2-year                 Does anyone here have a great deal of                  closure crisis is not just a crisis of indi-
                                            period, which is its life span, will cost               confidence in how efficiently they’ll                  vidual families. It’s a national eco-
                                            $175 million.                                           spend it?                                              nomic problem. It’s a macroeconomic



                                      VerDate Mar 15 2010   03:23 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00011   Fmt 7634   Sfmt 0634   E:\CR\FM\K10MR7.020   H10MRPT1
                                            H1680                                             CONGRESSIONAL RECORD — HOUSE                                                          March 10, 2011
                                            problem. To the extent that we do not                   It’s less than they want to send to                    bad deal, then the ranking member
                                            do something to retard the rate of fore-                build infrastructure in Kabul and                      ought to go over there and to complain
                                            closure, then we make it harder to get                  Kandahar. It’s less than they want to                  to the President, whom he defends, be-
                                            out of the economic bind in which we                    spend to police Fallujah. You know, if                 cause both of them, apparently, want
                                            have found ourselves, which, as the                     I thought that latter set of funds were                to spend money at every turn and
                                            gentleman correctly said, started from                  going to be well used, I might feel bet-               every chance they get.
                                            the meltdown of 2008, and we have been                  ter about it, but we know how corrupt                        U.S., BRAZIL AGREE ON FRAMEWORK
                                            getting out of that at too slow a pace.                 it is.                                                        REGARDING WTO COTTON DISPUTE
                                            Dealing with foreclosures is a part of                    There is a double standard, let me                     WASHINGTON, D.C.—Today Brazil’s Min-
                                            it.                                                     say finally. Expenditures within the                   isters reached a decision in support of a
                                              This program has not yet become                       United States are held to a very, very                 Framework regarding the Cotton dispute,
                                            fully operational—and it may never                      strict accountability, but as to expend-               which would avert the imposition of counter-
                                            be—but it is here to be used as a tool,                                                                        measures of more than $800 million this year.
                                                                                                    itures in Iraq and in Afghanistan and
                                                                                                                                                           This includes more than $560 million in coun-
                                            especially if we are ever to get the                    elsewhere in the world, we know how                    termeasures against U.S. exports which were
                                            agreement among the Attorneys Gen-                      much more wastefully and corruptly                     scheduled to go into effect on Monday, June
                                            eral from both parties, the regulators                  spent they are, and that doesn’t seem                  21, 2010, as well as possible countermeasures
                                            and the financial institutions. It is a                 to bother other people.                                on intellectual property rights that could
                                            responsible way to deal with this. It                     I reserve the balance of my time.                    have taken effect later. We are pleased with
                                            will cost less than many of the unnec-                    Mr. BACHUS. I yield myself such                      this decision, and look forward to signing
                                            essary agricultural subsidy programs.                   time as I may consume.                                 the Framework soon.
                                              I’ve got to say, Mr. Chairman, that                                                                            The findings in the Cotton dispute concern
                                                                                                      Mr. Chair, if I were Ranking Member
                                                                                                                                                           U.S. cotton support under the marketing
                                            I’ve got to go reread. Maybe I missed a                 FRANK, I would do exactly what he’s                    loan and countercyclical payment programs,
                                            footnote. I know there are these great                  doing. I wouldn’t talk about the fact                  and the GSM–102 Export Credit Guarantee
                                            free market economic texts by Ludwig                    that there are only 42 people who have                 Program. In line with these findings, the
                                            von Mises and Friedrich Hayek and                       been served by this program. I wouldn’t                Framework has two major elements.
                                            others. They talk about free enterprise,                talk about the fact that only $50 mil-                   First, it would provide, as a basis for a dis-
                                            about keeping the government out of                     lion has been set aside. I wouldn’t talk               cussion toward reaching a mutually agreed
                                            business, and about letting the free                    about the $8 billion that has been au-                 solution to the dispute, a limit on trade-dis-
                                                                                                                                                           torting cotton subsidies. Second, the Frame-
                                            market work. Apparently, there is a                     thorized. I wouldn’t talk about the fact               work would provide benchmarks for changes
                                            footnote that says, oh, except agri-                    that the American people were told                     to certain elements of the current GSM–102
                                            culture. Overwhelmingly, my Repub-                      this money would be repaid into the                    program. In the Framework, the United
                                            lican colleagues preach this to working                 National Treasury. No. I would talk                    States and Brazil would agree to meet quar-
                                            people, to people in urban areas and to                 about the cotton subsidy, the deal with                terly to discuss the successor legislation to
                                            people in other jobs, but it doesn’t                    Brazil. That deal sounds pretty bad. It                the 2008 Farm Bill as it relates to trade-dis-
                                            apply to cotton farmers or to wheat                     really does. The ranking member                        torting cotton subsidies and the operation of
                                            farmers or to corn farmers or to grain                  agrees.                                                GSM–102. The Framework would not serve as
                                                                                                                                                           a permanent solution to the Cotton dispute.
                                            farmers. Billions of dollars go to them.                                  b 1250                               However, it would provide specific interim
                                              As a matter of fact, as the gentleman
                                                                                                       He kept talking about this the last                 steps and a process for continued discussions
                                            from Alabama said with his vote: How                                                                           on the programs at issue with a view to
                                            dare you limit some farmer to a mere                    month, about don’t shut down this in-                  reaching a solution to the dispute.
                                            $250,000 in entitlement subsidies? Be-                  effective program to help balance the                    ‘‘I am pleased that we have been able to
                                            cause agriculture is an entitlement,                    budget because some of us voted for the                negotiate a Framework regarding the WTO
                                            but they don’t talk about that. They                    cotton deal with Brazil. Well, in fact,                Cotton dispute that would avoid the imposi-
                                            want to talk about Social Security for                  the majority of this Congress, the over-               tion of countermeasures against U.S. trade,
                                            the elderly, but they don’t want to talk                whelming majority did.                                 including goods and intellectual property,’’
                                                                                                       But, let’s talk about that deal. Who                said Ambassador Kirk. ‘‘While respecting the
                                            about entitlements for agriculture.                                                                            role of the United States Congress in devel-
                                              I do believe we need to cut the def-                  made that deal? Did the gentleman
                                                                                                                                                           oping the next Farm Bill, this Framework
                                            icit. I think we can cut back substan-                  from Alabama make that deal? Did the                   would now allow us to continue to work to-
                                            tially in what we’re doing in Afghani-                  gentleman from Texas that’s going to                   ward a final resolution of the Cotton dispute.
                                            stan and Iraq. We can cut back sub-                     speak on our side, did he make the                     I believe this Framework will go a long way
                                            stantially in agriculture. We can put                   deal? Did the gentleman from Nevada                    in alleviating the uncertainty in our busi-
                                            limits elsewhere, which I would like to                 make that deal? Did the gentleman                      ness communities and enhance the ability of
                                            do. I would throw in that I did not                     from Illinois (Mr. DOLD) make that                     the United States and Brazil to build upon
                                                                                                    deal? No. The Obama administration                     our dynamic trading relationship.’’
                                            think it was a good idea to reduce the
                                                                                                                                                             ‘‘This framework agreement provides a
                                            estate tax that the heirs of William                    made that deal.
                                                                                                                                                           way forward as we work with Congress to-
                                            Gates and Warren Buffett are going to                      The U.S. Trade Representative, Mr.                  ward a new farm bill in 2012,’’ said Secretary
                                            have to pay. Although, to the credit of                 Kirk, made that deal in an agreement                   of Agriculture Tom Vilsack. ‘‘Although it is
                                            Mr. Gates and Mr. Buffett, they didn’t                  with the Brazilian Government, not                     not a permanent solution, I am pleased that
                                            think so either. They weren’t for sub-                  your Republican colleagues. Here’s                     it allows us to maintain our programs while
                                            stantially reducing the estate tax on                   what he told us. He said that $60 billion              considering adjustments and avoiding the
                                            people who were going to be inher-                      worth of trade depended on our ability                 immediate imposition of countermeasures
                                                                                                    to export into Brazil without the tar-                 against U.S. exports as a result of the WTO
                                            iting—not earning—tens of hundreds of
                                                                                                                                                           cotton decision.’’
                                            millions of dollars.                                    iffs they were going to impose on us.
                                                                                                                                                                             BACKGROUND
                                              My colleagues over there, and some                    That’s 420,000 U.S. jobs that were
                                            here, have supported all of that, and                   threatened, and he told us that if we                    The Cotton dispute is a long-running dis-
                                                                                                                                                           pute brought by Brazil against the United
                                            then have said we cannot put a pro-                     didn’t do that, they would impose bil-
                                                                                                                                                           States. In 2005 and again in 2008, the World
                                            gram out there that will help Ameri-                    lion $820 worth of countertariffs on                   Trade Organization (WTO) found that certain
                                            cans facing foreclosure—and not sim-                    such products as pharmaceuticals,                      U.S. agricultural support payments and
                                            ply to help them but to help the cities                 autos, electronics, textiles, wheat,                   guarantees are inconsistent with WTO com-
                                            and to help the whole economy. There                    fruit, nuts, cotton, medical equipment.                mitments: (1) payments to cotton producers
                                            is a great consensus among economists                   So he made a deal with them to make                    under the marketing loan and counter-
tjames on DSKG8SOYB1PROD with HOUSE




                                            that dealing responsibly with fore-                     them certain payments, to compensate                   cyclical programs; and (2) export credit guar-
                                            closures is the way to deal with this.                  for that.                                              antees under the GSM–102 program, a USDA
                                                                                                                                                           program used to provide guarantees for cred-
                                              So, no, please don’t believe in $8 bil-                  Now, I don’t know if he misrepre-
                                                                                                                                                           it extended by U.S. banks or exporters to ap-
                                            lion. It’s not that. The CBO says it’s                  sented. I don’t think that President                   proved foreign banks for purchases of U.S.
                                            $175 million. And $175 million is consid-               Obama and his administration and his                   agricultural exports.
                                            erable, but I will repeat that it’s less                U.S. Trade Representative would have                     On August 31, 2009, WTO arbitrators issued
                                            than my friends want to send to Brazil.                 misrepresented this. But if that was a                 arbitration awards in this dispute. These




                                      VerDate Mar 15 2010   03:23 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00012   Fmt 7634   Sfmt 0634   E:\CR\FM\K10MR7.021   H10MRPT1
                                            March 10, 2011                                    CONGRESSIONAL RECORD — HOUSE                                                                H1681
                                            awards provided the level of counter-                     I yield such time as he may consume                  to anybody. It is simply sitting in that
                                            measures that Brazil could impose against               to the gentleman from Texas (Mr.                       account, in case, and the 42 loans have
                                            U.S. trade. The annual amount of counter-               CANSECO).                                              nothing to do with that.
                                            measures has two parts: (1) a fixed amount of
                                            $147.3 million for the cotton payments and
                                                                                                      Mr. CANSECO. I thank the gen-                          Yes, the gentleman from Alabama
                                            (2) an amount for the GSM–102 program that              tleman from Alabama.                                   said I didn’t talk about it. I did talk
                                            varies based upon program usage. Using the                Mr. Chairman, I am here to support                   about it. I corrected the misuse of the
                                            data that we have given Brazil (in accord-              the bill to terminate the FHA Refi-                    50 million from last week. He didn’t
                                            ance with the arbitrators’ award), the cur-             nance Program. This bill is not about                  misuse it today. And I mentioned that
                                            rent total of authorized countermeasures is             programs that work. It’s not about pro-                it started slow and it may not get be-
                                            more than $800 million.                                 grams that have continually helped to                  yond where it is now. I mentioned that
                                               The arbitrators also provided that Brazil
                                            could impose cross-sectoral countermeasures             create jobs and to help our faltering                  it is in reserve to use it more. So, yes,
                                            (i.e. countermeasures in sectors outside of             economy and our laggard job growth.                    we have only got 42. I talked about
                                            trade in goods, specifically intellectual prop-           This bill is about a failed government               that.
                                            erty and services). It may impose cross-sec-            program, because the FHA refinance                       The 8 billion is a fantasy. The CBO
                                            toral countermeasures to the extent that it             program that went into effect in Sep-                  says at it’s best, this is going to cost
                                            applies total countermeasures in excess of a            tember of 2010 has failed to work prop-                $175 million. The 8 billion is a purely
                                            threshold. The threshold varies annually,               erly. By the end of December of last                   bookkeeping account.
                                            but is currently approximately $560 million.
                                            Therefore, of the approximately $820 million
                                                                                                    year, of 2010, a mere 22 mortgages had                   But I want to get back to the fas-
                                            in countermeasures Brazil could impose now,             been refinanced through the program                    cinating explanation by the gentleman
                                            about $260 million of that could be cross-sec-          at a cost of $50 million. That’s an aver-              from Alabama as to why he and the
                                            toral.                                                  age of $2.3 million per mortgage. The                  majority of Republicans voted to send
                                               On March 8, 2010 Brazil announced a final            conclusion is very, very clear. The pro-               $150 million per year last year, this
                                            list of products that would face higher tariffs         gram does not work and it’s wasteful.                  year, and for the next couple of years
                                            beginning on April 7, 2010. Goods on the list             We are in an economic crisis. Accord-                to Brazil: Obama made him do it. Lis-
                                            include autos, pharmaceuticals, medical
                                            equipment, electronics, textiles, wheat, fruit          ing to the Congressional Budget Office,                ten carefully. The explanation for this
                                            and nuts, and cotton. Brazil had not made a             the Federal Government is set to run a                 expenditure to go to Brazil, that the
                                            final decision on which U.S. intellectual               deficit for fiscal year 2011 of $1.5 tril-             poor gentleman from Alabama voted
                                            property rights might be affected by cross-             lion. If serious steps are not taken                   for, is Barack Obama made him do it.
                                            sectoral countermeasures, but it had begun              right now, we are set and ready to see                   The President is a very convenient
                                            the process to make this determination.                 in 2012 another trillion dollars added to              place for them to hide. In fact, if he is
                                               On April 1, Deputy USTR Miriam Sapiro                                                                       asking me if I am critical of the Presi-
                                                                                                    our deficit.
                                            and USDA Undersecretary for Farm and For-
                                            eign Agricultural Services Jim Miller met                 This river of red ink is not sustain-                dent in that, yes, I am critical of the
                                            with Ambassador Antonio Patriota, Sec-                  able. Americans are coming to grips                    President many times. I agree with
                                            retary General of Brazil’s Ministry of Exter-           with the fact that, if nothing is done,                him overall. But I did not agree with
                                            nal Relations to discuss possible resolution            we will be the first generation in Amer-               him that we should send 1.2 billion for
                                            of the dispute. As a result of that dialogue,           ican history to leave for our children a               Iraq security forces. The gentleman
                                            the Government of Brazil agreed not to im-              legacy of insurmountable debt and eco-                 from Alabama did. I didn’t agree we
                                            pose any countermeasures on U.S. trade at               nomic stagnation.                                      should send $400 million for Afghan in-
                                            that time. In exchange, the United States
                                            agreed to work with Brazil to establish a
                                                                                                      And while there are a number of dif-                 frastructure.
                                            fund of approximately $147.3 million per year           ficult decisions that we must make in                    The gentleman seems to think it’s
                                            on a pro rata basis to provide technical as-            the months and years ahead, common                     some major debating point because the
                                            sistance and capacity building to the cotton            sense dictates that we can begin to get                President takes the position that I dis-
                                            sector in Brazil, and for international co-             our spending under control by cutting                  agree? Perhaps his view is you always
                                            operation related to the same sector in cer-            programs that simply don’t work, no                    agree with the President of your party.
                                            tain other countries. Under the Memo-                   matter how large or how small they                     It’s not mine. It’s not a responsible
                                            randum of Understanding that the United
                                                                                                    are or no matter how beneficent they                   way to legislate.
                                            States and Brazil signed on April 20, 2010, the
                                            fund would continue until passage of the                may sound. They just don’t work. This                    Secondly, there was an alternative to
                                            next Farm Bill or a mutually agreed solution            one does not work.                                     sending $150 million to Brazil. We could
                                            to the Cotton dispute is reached, whichever               Many of my colleagues on the other                   have sent $150 million less to Ameri-
                                            is sooner. The fund is subject to trans-                side of the aisle often think that we are              cans. The finding was that we were
                                            parency and auditing requirements.                      just one government program away                       putting Brazilian cotton farmers at a
                                               The United States also agreed to make cer-           from solving our problems. But when                    $150 million disadvantage per year be-
                                            tain near term modifications to the oper-
                                                                                                    you think that way, you end up piling                  cause of the subsidy we gave to Ameri-
                                            ation of the GSM–102 Export Credit Guar-
                                            antee Program, and to engage with the Gov-              one government program on top of an-                   cans. We could have come in with legis-
                                            ernment of Brazil in technical discussions re-          other, wasting the taxpayers’ money                    lation that would have reduced the
                                            garding further operation of the program. In            without even helping our fellow citi-                  Americans’.
                                            addition, the United States published a pro-            zens who are struggling in this day and                  So, in fact, I underestimated the
                                            posed rule on April 16, 2010, to recognize the          age.                                                   waste of money that the gentleman
                                            State of Santa Catarina as free of foot-and-              The last 2 years have proven that                    from Alabama is indulging because
                                            mouth disease, rinderpest, classical swine              government programs and government                     Barack Obama made him do it and he
                                            fever, African swine fever, and swine vesic-
                                            ular disease, based on World Organization for
                                                                                                    spending do very little in the way of                  was powerless to resist, apparently, be-
                                            Animal Health Guidelines, and to complete a             stimulating jobs that we need most and                 cause it’s $300 million a year.
                                            risk evaluation and identify appropriate risk           economic growth. We in the Congress                      We had two options: We could keep
                                            mitigation measures to determine whether                of the United States have a duty to be                 the level of subsidy for American cot-
                                            fresh beef can be imported from Brazil while            the stewards of the people’s money, the                ton farmers and match that to the Bra-
                                            preventing the introduction of foot-and-                people’s tax dollars. The least we can                 zilians, or we could reduce it by $150
                                            mouth disease in the United States.                     do is tell our constituents that we are                million in America and reduce it to
                                               The parties further agreed on April 1 that
                                            they would work to develop a Framework re-              doing our job by cutting the stuff that                Brazil over a 4-year period when this
                                            garding the Cotton dispute by June 21, which            does not work. This does not work.                     will be in effect. That’s over a billion
                                            would provide a path forward for a nego-                  Mr. FRANK of Massachusetts. I yield                  dollars, a considerable amount of
                                            tiated solution to the Cotton dispute and               myself such time as I may consume.                     money.
tjames on DSKG8SOYB1PROD with HOUSE




                                            allow both countries to avoid the impact of               Two points: First, you have just                       So, yes, it is true, the President
                                            countermeasures. Negotiators from Brazil                heard a fantasy that $50 million has                   sometimes makes unwise recommenda-
                                            and the United States have been engaged in-             been spent for 42 loans. That is not                   tions, in my judgment. But the argu-
                                            tensively over the past several months, and
                                                                                                    even remotely close to being true.                     ment for the gentleman from Alabama
                                            successfully concluded this Framework.
                                               Brazil is the United States’ 10th largest            Fifty million has been set aside in a re-              that he is to be absolved from responsi-
                                            trading partner with a total two-way goods              serve for defaults if and when they                    bility for his vote, and the majority of
                                            trade of approximately $60 billion in 2009.             come. Not a penny of it has been given                 Republicans—the majority of us on our



                                      VerDate Mar 15 2010   04:42 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00013   Fmt 7634   Sfmt 0634   E:\CR\FM\A10MR7.029   H10MRPT1
                                            H1682                                             CONGRESSIONAL RECORD — HOUSE                                                      March 10, 2011
                                            side repudiated the President’s position                We’ve seen many courts in this country                 have $50 million that has been dis-
                                            in this case. But the gentleman from                    look at the foreclosure process used by                bursed.
                                            Alabama has claimed, Don’t blame me;                    these banks and have ruled them to be                    Now, a quick back-of-the-envelope
                                            Obama made me do it is no more cred-                    illegal and that, in fact, the banks did               calculation, that’s $1.1 million per
                                            ible than his invocation of some fan-                   not own the homes that they were try-                  mortgage refinanced thus far. If we
                                            tasy figures.                                           ing to foreclose on. And this has hap-                 look at it even further, were these mil-
                                              I reserve the balance of my time.                     pened thousands of times across the                    lion-dollar mortgages? Actually, the
                                              Mr. BACHUS. May I inquire of the                      country. It has not been a smooth proc-                average mortgage was about $300,000.
                                            Chair how much time each side has re-                   ess.                                                   So we spent, the American taxpayers,
                                            maining?                                                   We’ve also had a very, very difficult               in terms of their dollars, we spent $1.1
                                              The CHAIR. The gentleman from                         situation for our men and women in                     million in order to refinance a $300,000
                                            Alabama has 11 minutes remaining,                       uniform. Despite the fact that there’s                 loan. The administration said that
                                            and the gentleman from Massachusetts                    been a law in this country since World                 we’re going to have 1.5 million home-
                                            has 171⁄2 minutes remaining.                            War I that we will not foreclose on                    owners get into this program, and yet
                                              Mr. BACHUS. I continue to reserve                     servicemembers’ homes while they are                   we’ve taken almost a year and we have
                                            the balance of my time.                                 in combat, while they are in Afghani-                  44 that have actually gone through.
                                                                                                    stan or Iraq, we’ve had banks do hun-                    If you were to get through this pro-
                                                              b 1300                                                                                       gram, if you were one of the lucky
                                                                                                    dreds and hundreds of foreclosures on
                                              Mr. FRANK of Massachusetts. I yield                   our men and women in uniform. There                    ones, one of the 44, clearly, it’s not
                                            5 minutes to the gentleman from Mas-                    are needs for these programs, and yet                  going to help you insofar as you’re
                                            sachusetts (Mr. LYNCH).                                 we are conveniently forgetting those                   going to destroy your credit for the
                                              Mr. LYNCH. I thank the ranking                        facts.                                                 next several years. The average credit
                                            member.                                                    Lastly, this bill, with all due respect,            score of the 44 that are in the program
                                              I rise in opposition to H.R. 830, the                 has been poorly drafted in a meaning-                  was 711. That credit score is going to
                                            FHA Refinance Program Termination                       ful way. This bill, if adopted, would                  go down. Is their monthly payment
                                            Act and also the other bills that will be               prohibit all voluntary agreements be-                  going to go down? In many instances,
                                            coming to the floor on the same sub-                    tween parties to stop these fore-                      no, because they’re going to have to
                                            ject.                                                   closures. And I understand what the                    come up with closing costs. They’re
                                              I want to emphasize one thing that                    targets of my Republican colleagues                    going to have to pay private mortgage
                                            the ranking member has raised, and                      are, but the bill is drafted so broadly it             insurance if they haven’t been paying
                                            that is that these are voluntary pro-                   would prevent the banks, the FHA, the                  it already. And so there are other re-
                                            grams. These are all voluntary pro-                     homeowner and the servicer to come to                  quirements that are simply a burden
                                            grams that are trying to keep Amer-                     a voluntary agreement.                                 on the actual homeowners.
                                            ican families in their homes. These                        Private enterprise has been some-                     It’s time that we tell the American
                                            programs require the banks to agree                     thing that my colleagues used to en-                   public the truth. It’s time that we in
                                            that this is a good deal and it’s deserv-                                                                      this body recognize when a government
                                                                                                    courage, and here we have voluntary
                                            ing of these homeowners. These pro-                                                                            program is not working. We need to get
                                                                                                    agreements that will be prohibited by
                                            grams require that the homeowner also                                                                          rid of this program—$8.12 billion obli-
                                                                                                    this bill. And I do not think that is the
                                            agree, obviously, and also that in many                                                                        gated, $50 million disbursed for 245 ap-
                                                                                                    intent of the gentleman, however, that
                                            cases that the servicer agree.                                                                                 plicants and 44 mortgages actually
                                                                                                    is the actual impact of his legislation.
                                              Now, because you’re requiring a vol-                                                                         redone.
                                                                                                    And I have an amendment more spe-                        The program certainly doesn’t work
                                            untary agreement and an agreement                       cifically to deal with that at a later
                                            that has been crafted in such a way                                                                            for the American taxpayer. We’re look-
                                                                                                    time. But we have to slow down the                     ing at debts and deficits in Wash-
                                            that all parties are balanced in their                  foreclosure process to put a floor under
                                            interests, it’s been difficult to generate                                                                     ington. And many of us were sent here
                                                                                                    this economy. We have to help the fam-                 to Washington to try to get the out-of-
                                            the number of families to be helped so                  ilies that can be helped. And this FHA
                                            far.                                                                                                           control government spending back in
                                                                                                    Refinance Program Termination Act                      line. And I would say that certainly
                                              I do want to also emphasize that this                 would prevent that from happening.
                                            program started in November. This                                                                              $1.1 million per mortgage is not a good
                                                                                                       Mr. BACHUS. Mr. Chair, I yield 4                    use of the taxpayer dollars.
                                            program started in November. We’ve                      minutes to the gentleman from Illinois                   When we look at future generations
                                            had about 4 months to get families on                   (Mr. DOLD).                                            and we look at the amount of money
                                            board to be helped by these programs.                      Mr. DOLD. Thank you, Mr. Chair-                     that we’re spending right now, $1.48
                                            For much of that 4 months, we have                      man, for yielding.                                     trillion in deficit spending works out
                                            had    abject    resistance     from   the                 Mr. Chairman, H.R. 830 is common-                   to be over $3 million a minute. The
                                            servicers. They have been the obstruc-                  sense legislation that stops inefficient               President’s budget comes out to talk-
                                            tion in making these programs work.                     and ineffective government spending.                   ing about 1.6 for the next year. We can-
                                            But I am happy to say that in the last                  At the outset of this $8 billion pro-                  not continue to spend money that we
                                            10 days, we have had three major                        gram, its failure was inevitable. That                 don’t have. Our debt is at $14 trillion.
                                            servicers, Allied, GMAC and Wells                       inevitable failure is now undeniable. It               When we actually took a look at the
                                            Fargo, that have finally come forward                   doesn’t work for the homeowner, it                     Treasury report that came out just a
                                            and said, we’re going to work within                    doesn’t work for the taxpaying Amer-                   couple of days ago talking about
                                            this program, and we’re going to try to                 ican families, and it certainly doesn’t                TARP, because this program is basi-
                                            help families stay in their homes not                   work for future generations who are                    cally on TARP funds, they recognize
                                            out of charity, but because they realize                trying to claw their way out of the                    that the mortgage modification pro-
                                            that we need to put a floor under this                  debt that we are burdening them with                   grams were never intended to be recov-
                                            housing market in order to help sus-                    each and every day.                                    ered. This, to me, I think is an enor-
                                            tain the weak economic recovery that                       So let’s go back and let’s talk about               mous problem.
                                            we have going forward.                                  the homeowners. We’ve got 12 million                     This is a program that doesn’t work
                                              What exacerbates the situation is                     mortgages in America that are cur-                     for the homeowner, it doesn’t work for
                                            also the way the banks have handled                     rently underwater. And yet this pro-                   the American public, and it certainly is
                                            this up until now. In my district, and                  gram, this program which was actually                  not going to work for future genera-
tjames on DSKG8SOYB1PROD with HOUSE




                                            it’s happened all across the country,                   rolled out in March, it started about 6                tions.
                                            we’ve had situations where banks and                    months ago, has 245 applications—245.                    Mr. FRANK of Massachusetts. I yield
                                            servicers have employed robosigners to                  How many have actually made it over                    myself 30 seconds simply to say the
                                            the point where many of these fore-                     the hurdles and have gotten actually                   gentleman has simply repeated an ab-
                                            closure documents have been signed                      some help and refinanced? Forty-four.                  solute fantasy. This is not a $50 million
                                            without full knowledge by the individ-                  Forty-four refinances. We’ve got $8.12                 expenditure for 40 loans. The $50 mil-
                                            uals charged with that responsibility.                  billion that has been obligated. We                    lion has not been given to anybody, not



                                      VerDate Mar 15 2010   03:23 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00014   Fmt 7634   Sfmt 0634   E:\CR\FM\K10MR7.025   H10MRPT1
                                            March 10, 2011                                                                                           CONGRESSIONAL RECORD — HOUSE                                                                                                                                                                                     H1683
                                            a penny of it. It has been put in a re-                                                                                               b 1310                                                                                         strengthening them so they are more
                                            serve account. Fifty million has been                                                                                  I hosted foreclosure workshops, and I                                                                         effective. Mortgage counselors from
                                            set aside in a reserve account. It was                                                                               met with hardworking people who were                                                                            my district advise and plead to im-
                                            disbursed from the TARP to a reserve                                                                                 misled by lenders who were struggling                                                                           prove our efforts to get tough on big
                                            account. The CBO, as I’ve submitted if                                                                               to stay on top of their mortgages. I                                                                            banks and provide meaningful relief to
                                            this goes forward, it will be about                                                                                  have seen grown men cry because they                                                                            families.
                                            $12,000 per loan.                                                                                                    couldn’t keep a roof over their chil-                                                                             Stabilizing the housing market is
                                              Last week, the gentleman from Illi-                                                                                dren’s heads. I have talked to veterans                                                                         critical to economic recovery and cre-
                                            nois was claiming that if you partici-                                                                               who served their country, only to re-                                                                           ating jobs. For these reasons, I oppose
                                            pate in this program, you would have a                                                                               turn home to notices of default. And I                                                                          H.R. 830.
                                            tax liability. He learned that that was                                                                              have met seniors on the brink of home-                                                                            Mr. BACHUS. Mr. Chairman, I yield
                                            totally wrong. He is perpetuating                                                                                    lessness.                                                                                                       30 seconds to the gentleman from Illi-
                                            error.                                                                                                                 The administration’s foreclosure pre-                                                                         nois (Mr. DOLD).
                                                                                                                                                                 vention initiatives have fallen short in                                                                          Mr. DOLD. Mr. Chairman, running a
                                              I now yield 2 minutes to the gen-
                                                                                                                                                                 the valley. Simply put, the administra-                                                                         business, I have to tell you, obligated
                                            tleman       from     California   (Mr.
                                                                                                                                                                 tion’s programs haven’t effectively                                                                             funds are one thing, disbursed funds
                                            MCNERNEY)
                                                                                                                                                                 served the people who are underwater                                                                            are quite another. If I can, from the
                                              Mr. MCNERNEY. Thank you, Mr.                                                                                       on their mortgage, and the administra-                                                                          monthly 105(a) report delivered to the
                                            Ranking Member.                                                                                                      tion hasn’t been tough enough on the                                                                            Congress from TARP and from the De-
                                              I’m proud to represent much of San                                                                                 big banks. I call on President Obama                                                                            partment of the Treasury, and I will
                                            Joaquin County, which is the jewel of                                                                                and his Cabinet to develop more effec-                                                                          submit it for the RECORD, under ‘‘Obli-
                                            California’s Central Valley. Our valley                                                                              tive efforts to stem the tide of fore-                                                                          gated’’ all of the way down here when
                                            is a great place to live and work; but,                                                                              closures.                                                                                                       it is talking about the FHA refinance,
                                            unfortunately, we’ve been hit very                                                                                     But despite these shortcomings, the                                                                           it is $8.12 billion. And in an entirely
                                            hard by the economic downturn. The                                                                                   bill the House Republicans are offering                                                                         different column under ‘‘Disbursed,’’ it
                                            valley has been ground zero for the                                                                                  today is absolutely the wrong ap-                                                                               is $50 million. From the paper here
                                            foreclosure crisis. Over the past few                                                                                proach. It is throwing the baby out                                                                             from the Department of the Treasury,
                                            years, thousands of families in San                                                                                  with the bath water. Instead of can-                                                                            obligated and disbursed are different
                                            Joaquin County and throughout the                                                                                    celing foreclosure relief programs at                                                                           things. We have $50 million that has
                                            valley have lost their homes.                                                                                        their beginning stages, we should be                                                                            been disbursed.
                                                                                                                                                      FIGURE 1—DAILY TARP PROGRESS REPORT AS OF FEBRUARY 3, 2011
                                                                                                                                                                                                          [$ billions]

                                                                                                                                                                                                  Principal/Investment                                                                                         Income/revenue
                                                                                                                                                                                                                                                                                                                                                                               Total cash
                                                                              (*Dollars in billions*)                                                Obligated                                                                   Realized                                                                         Gain/other           Warrants             Total in-             back
                                                                                                                                                                   Disbursed       Repayments            Write-offs                                  Outstanding         Dividends             Interest
                                                                                                                                                                                                                                   loss                                                                            income                sold                 come

                                            Bank Support Programs
                                                 Capital Purchase Program (CPP)
                                                      Preferred & Other Securities .............................................               179.89               179.89               146.08                      2.58                 0.00               30.88                 9.45 .................... ....................               6.93               16.38              162.46
                                                      Citigroup Common ............................................................              25.00                25.00                25.00        .................... ....................             0.00                 0.93 ....................              6.85                  0.05                7.84               32.84
                                                 Targeted Investment Program (TIP)
                                                      Bank Of America ...............................................................            20.00                20.00                20.00        .................... .................... ....................             1.44 .................... ....................               1.24                 2.67               22.67
                                                      Citigroup ............................................................................     20.00                20.00                20.00        .................... .................... ....................             1.57 .................... ....................               0.19                 1.76               21.76
                                                 Asset Guarantee Program (AGP)
                                                      Bank Of America ............................................................... .................... .................... ....................    .................... .................... .................... .................... ....................           0.28 ....................                 0.28                0.28
                                                      Citigroup ............................................................................       5.00 .................... ....................       .................... .................... ....................              0.44 ....................              2.25                 0.07                 2.76                2.76
                                                 Community Development Capital Initiative (CDCI) ...................                               0.57                 0.57 ....................       .................... ....................              0.57                 0.00 .................... .................... ....................              0.00                0.00
                                                              Bank Program Totals ...............................................                        250.46        245.46              211.08                   2.58                  0.00               31.45               13.83 ....................                 9.37                8.48               31.68              242.76
                                            Credit Market Programs
                                                  Public-Private Investment Program (PPIP)
                                                        Equity ................................................................................            7.51          5.37              0.16 ....................          ....................            5.21              0.40 ....................                 0.00 ....................                 0.40                 0.56
                                                        Debt ...................................................................................          14.90         10.52              0.46 ....................          ....................           10.06 ....................              0.10 .................... ....................                 0.10                 0.56
                                                  Term Asset Backed Securities Lending Facility .........................                                  4.30          0.10 .................... ....................       ....................            0.10 .................... .................... .................... .................... .................... ....................
                                                  Purchase SBA 7(a) Securities (SBA) ..........................................                            0.37          0.37              0.01 ....................          ....................            0.36 ....................              0.00                 0.00 ....................                 0.00                 0.01
                                                             Credit Market Program Totals ..................................                              27.07         16.36                 0.63 .................... ....................                 15.73                 0.40                0.10                 0.00 ....................                0.50                1.13
                                            Other Programs
                                                 American international Group (AIG)
                                                       Common ............................................................................                47.54         47.54 .................... .................... ....................                 47.54 .................... ....................              0.06 ....................                 0.06                 0.06
                                                       Preferred ............................................................................             22.29         20.29 .................... .................... ....................                 20.29 .................... .................... .................... .................... .................... ....................
                                                    AIG Totals ...................................................................................        69.84         67.84 .................... .................... ....................                 67.84 .................... ....................                0.06 ....................                0.06                0.06
                                                    Automotive Industry Financing Program (AIFP)
                                                         GM .....................................................................................         51.03         51.03            23.07 ....................                  4.44                    23.53 ....................           0.77                 0.10 ....................                     0.86               23.93
                                                         Chrysler .............................................................................           14.43         12.37              3.85                 1.60 ....................                     6.92 ....................           0.58                 0.06 ....................                     0.64                4.49
                                                         Ally (GMAC) .......................................................................              16.29         16.29 .................... .................... ....................                 16.29              2.00 .................... .................... ....................                  2.00                2.00
                                                    AIFP Totals .................................................................................         81.76         79.69                26.92                  1.60                  4.44               46.74                 2.00                1.35                 0.16 ....................                3.51               30.43
                                                            Other Programs Totals .............................................                          151.59        147.53                26.92                  1.60                  4.44             114.57                  2.00                1.35                 0.21 ....................                3.56               30.48
                                            Treasury Housing Programs Under TARP
                                                 Making Homes Affordable ..........................................................                       29.91           0.94 .................... .................... .................... .................... .................... .................... .................... .................... .................... ....................
                                                 HFA Hardest-Hit Fund ................................................................                     7.60           0.10 .................... .................... .................... .................... .................... .................... .................... .................... .................... ....................
                                                 FHA Refinance ............................................................................                8.12           0.05 .................... .................... .................... .................... .................... .................... .................... .................... .................... ....................
                                                                    Housing Totals .........................................................              45.62           1.10 .................... .................... .................... .................... .................... .................... .................... .................... .................... ....................
                                                                    Grand Totals .............................................................           474.76        410.45              238.63                   4.18                  4.44             161.75                16.23                 1.45                 9.59                8.48               35.74              274.38



                                              Mr. FRANK of Massachusetts. I yield                                                                                  Mrs. MALONEY. I thank the ranking                                                                             know that we have 12 million mort-
                                            myself 15 seconds to further elucidate                                                                               member for yielding.                                                                                            gages that are underwater, that need
                                            matters to the gentleman from Illinois.                                                                                I rise in opposition to H.R. 830. This                                                                        help. They are in all of our States, but
                                            It has been disbursed in a letter of                                                                                                                                                                                                 they are not coming forward with any
tjames on DSKG8SOYB1PROD with HOUSE




                                                                                                                                                                 bill is one of four separate anti-fore-
                                            credit, none of which has been drawn                                                                                 closure programs aimed at helping                                                                               ideas of how to help the economy or
                                            down. It sits there as a reserve in case                                                                             troubled homeowners stay in their                                                                               how to help the people.
                                            of losses.                                                                                                           homes that the new House Republican                                                                               Now, this particular program is just
                                              I now yield 3 minutes to the gentle-                                                                               majority is planning to end. What is                                                                            getting started. It is the FHA Short
                                            woman      from    New     York    (Mrs.                                                                             very troubling is that they don’t have                                                                          Refinance Program, and it is one of the
                                            MALONEY).                                                                                                            any idea of what to put in its place. We                                                                        foreclosure prevention programs that



                                      VerDate Mar 15 2010                     03:23 Mar 11, 2011                          Jkt 099060                 PO 00000       Frm 00015              Fmt 7634                Sfmt 0634                  E:\CR\FM\K10MR7.027                             H10MRPT1
                                            H1684                                             CONGRESSIONAL RECORD — HOUSE                                                      March 10, 2011
                                            would not only help the individual                      might be unsettling to the economy.                    duct and the States’ attorneys general
                                            homeowners, but also help to stabilize                  Mr. Chairman, if there is one problem                  have been pushing them, the banks, to
                                            the overall U.S. housing market, which                  that got solved in the past decade, it is              impose fines for violating the law in
                                            is 25 percent of our economy. So it not                 that problem: the problem of paying off                how they handle foreclosures.
                                            only helps an individual. It helps a lo-                the national debt too quickly.                                           b 1320
                                            cality, it helps our country, it helps                    My party can claim none of the cred-
                                            our economic strength.                                  it for that. It was a Republican Presi-                   Several Republicans sent a letter
                                              The result of ending this program                     dent and a Republican Congress. I must                 yesterday to the Secretary of the
                                            would be hundreds of thousands of ad-                   admit that I don’t like what they did                  Treasury protesting that Federal agen-
                                            ditional foreclosures and steeper price                 to solve that problem of paying off the                cies were being too mean to the banks.
                                            declines in our housing. It is out-                     national debt too quickly. They gave                      I thought most politicians learned
                                            rageous. It is shortsighted. It is mean,                tax cuts to America’s top one-tenth of                 during the Keating Five that your of-
                                            and it is wrong.                                        1 percent, Americans making more                       fice does not give you the right to give
                                              Now, in this program it would allow                   than $2,340,000, and we saw just a cou-                your political buddies, your contribu-
                                            the borrowers to reduce the principal                   ple of months ago that that was one                    tors, a get-out-of-jail-free card, but
                                            owed on their homes up to 10 percent                    thing that was absolutely nonnego-                     that appears to be what they’re willing
                                            so that their payments are lower, so                    tiable for them. They would give up ev-                to do when it’s the banking industry
                                            that they can save money that they                      erything before they would let those                   that is complaining about it. It is not
                                            can’t afford. And in return, the banks                  Americans have to pay any more in                      true that this problem of foreclosures
                                            would get an FHA-insured loan that is                   taxes.                                                 is just affecting a handful of Ameri-
                                            subject to all of FHA’s strict stand-                     When there was a proposal to expand                  cans.
                                                                                                    Medicare to take care of prescription                     The CHAIR. The time of the gen-
                                            ards. So to get this loan, you will have
                                                                                                    drugs, something I supported gen-                      tleman has expired.
                                            to jump through hoops to be able to                                                                               Mr. FRANK of Massachusetts. I yield
                                            qualify.                                                erally, Republicans in Congress passed
                                                                                                                                                           the gentleman 1 additional minute.
                                              And it is voluntary. Just last week,                  a bill that was not paid for, as other                    Mr. MILLER of North Carolina. We
                                            several major banks in America volun-                   programs like that had been paid for,                  are in a cycle of foreclosures leading to
                                            tarily walked forward to help out—                      and was a giveaway to the insurance                    the reduced value of homes, more
                                            Citibank, Wells Fargo, and Bank of                      industry and to the prescription drug                  Americans underwater, and when peo-
                                            America, to name a few. So the pro-                     industry. So when they are giving tax                  ple are underwater, they’ve seen their
                                            gram is just getting started and the $50                cuts to the very, very richest Ameri-                  life savings disappear. More Americans
                                            million line of credit is like a line of                cans, the richest of the rich, when they               underwater, more foreclosures, and on
                                            credit you draw down on. Hopefully, we                  are giving away taxpayer money to the                  and on.
                                            won’t even have to tap into it. Hope-                   insurance companies and to the pre-                       We have got to put a bottom on the
                                            fully, our economy improves and peo-                    scription drug industry, the drug in-                  housing market. We know this can
                                            ple are able to pay their mortgages.                    dustry, they don’t worry about deficits                work. This program is very similar to a
                                              The standards are very strict. The                    at all. It is only when Democrats take                 program in the New Deal that did
                                            owners must be current on their pay-                    the Presidency, and particularly in the                work, the Homeowners Loan Corpora-
                                            ments. It must be their primary resi-                   last 2 years when we have been dealing                 tion. It turned a profit—a slight profit,
                                            dence. They have to have full docu-                     with the worst recession since the                     but a profit—saved the middle class,
                                            mentation to qualify. So it is a strict                 Great Depression and have been trying                  and saved the housing industry. We
                                            program.                                                to pull the country out of a nosedive,                 need to do something. Republicans
                                              I want to come back to an issue that                  that they have suddenly become wor-                    have offered nothing.
                                            is very important to me and, that is,                   ried about the deficits and criticized                    Mr. BACHUS. Mr. Chair, I yield 11⁄4
                                            this affects lives. This affects people.                everything that we have done to try to                 minutes to the gentleman from Nevada
                                              In Congressman FRANK’s home State,                    save the country from the disaster that                (Mr. HECK).
                                            there are over 222,000 residents whose                  we inherited.                                             Mr. HECK. I thank the gentleman
                                            mortgages are underwater that could                       It is only the programs that help                    from Alabama for the time.
                                            qualify possibly if they could meet the                 working and middle class families that                    Mr. Chairman, I rise today to oppose
                                            criteria. It is part of a total package to              seem to give them a problem, like this                 H.R. 830, the FHA Refinance Program
                                            help our economy move forward, and                      one. Now, we have been on the case of                  Termination Act. I represent the dis-
                                            the opposition, the Republican major-                   subprime lending and its effects for a                 trict that is truly ground zero for
                                            ity, has no ideas of their own. It is just              long time. I introduced legislation in                 America’s housing crisis; 390,192 mort-
                                            to come in and cut a good program                       2004 to rein in subprime lending, not a                gages in Nevada are underwater. Let
                                            that is just getting started.                           bit of help from Republicans. Mr. WATT                 me say that again: 390,192 families in
                                              They mentioned the 44 people that                     and I introduced that bill. It was Mil-                Nevada are underwater.
                                            have been helped. They say that is not                  ler-Watt. Two years later, it became                      I agree that people need a paycheck,
                                            important. I would say it is very im-                   Miller-Watt-Frank. We have been on                     not a government check, but we must
                                            portant to the 44 people who have been                  this case.                                             help individuals who are trying to do
                                            helped, and there could be 12 million                     The gentleman from Alabama said in                   the right thing. This program gives
                                            who could be helped under this pro-                     committee the other day, Show me a                     some of those Nevadans who are cur-
                                            gram.                                                   way to deal with this problem that                     rent on their mortgage but underwater
                                              Mr. BACHUS. I reserve the balance of                  doesn’t cost taxpayer money. I did that                the ability to refinance their loan.
                                            my time.                                                in 2007. I introduced a bill that bank-                   Some will say this program is a fail-
                                              Mr. FRANK of Massachusetts. I yield                   ruptcy lawyers and judges have said                    ure because too few mortgages have
                                            4 minutes to the gentleman from North                   was one way to deal with the problem,                  been refinanced through it. They’ll say
                                            Carolina (Mr. MILLER), one of the lead-                 let bankruptcy judges modify mort-                     not enough money has been distrib-
                                            ing House experts on this matter.                       gages in bankruptcy the same way                       uted. I say, a failed PR job should not
                                              Mr. MILLER of North Carolina. Mr.                     they modify all other kinds of secured                 be the reason a good program dies. And
                                            Chairman, I want to reassure Ameri-                     debt; no support from Republicans at                   the FHA Refinance Program can be a
                                            cans that it is not true that no problem                all, and the opposition Republicans                    good program, but it needs more atten-
                                            ever gets fixed in Washington. Ten                      killed that.                                           tion, and perhaps reform, so home-
tjames on DSKG8SOYB1PROD with HOUSE




                                            years ago, the debate here in Congress                    I urged the Federal agencies that set                owners know it’s an option.
                                            was what to do with the surplus. In                     rules for the banks to require they                       Vote ‘‘no’’ on H.R. 830 and give home-
                                            fact, we paid off $400 billion of the debt;             treat people better than they have been                owners a chance to take advantage of
                                            and Alan Greenspan, who was then the                    treating them when they manage their                   this program.
                                            chairman of the Federal Reserve                         mortgages, no help from Republicans                       Mr. BACHUS. Mr. Chair, I yield 1
                                            Board, worried that we would pay off                    at all. Just yesterday, the Federal                    minute to the gentleman from Kansas
                                            the national debt too quickly and it                    agencies in charge of the banks’ con-                  (Mr. YODER).



                                      VerDate Mar 15 2010   03:23 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00016   Fmt 7634   Sfmt 0634   E:\CR\FM\K10MR7.029   H10MRPT1
                                            March 10, 2011                                    CONGRESSIONAL RECORD — HOUSE                                                                      H1685
                                               Mr. YODER. Thank you, Mr. Chair-                     month: ‘‘As of February 11, 44 loans                   than many of the billions my col-
                                            man.                                                    have been endorsed.’’ Where else but in                leagues on the other side are prepared
                                               I rise today in strong support of H.R.               Washington would it be a good idea to                  to subsidize some of their favored sa-
                                            830. The bill would repeal a well-inten-                obligate $8 billion in taxpayer funds                  cred cows as opposed to doing some-
                                            tioned but bankrupt policy.                             and disburse $50 million of those dol-                 thing that will help the whole econ-
                                               Mr. Chairman, the American people                    lars? Now, whether it’s to help 44                     omy.
                                            are tired of bailout after bailout and                  homeowners or not, we don’t know how                     I yield back the balance of my time.
                                            big spending bill after big spending                    many will be in default or what it will                  Mr. BACHUS. I yield myself the bal-
                                            bill. With $14 trillion in debt and bor-                cost. But that money has been dis-                     ance of my time.
                                            rowing $5 billion a day, yet unemploy-                  bursed from the U.S. Treasury.                           Mr. Chair, Members of this body,
                                            ment is at 9 percent, the American peo-                   Mr. Chairman, this bill ends another                 what are we talking about when we’re
                                            ple are sending us an unmistakable                      failed government program. Taxpayers                   talking about cutting government
                                            message: The idea of borrowing, bailing                 shouldn’t foot the bill for failure. I                 spending? We’re talking about these
                                            out and spending isn’t working.                         would urge my colleagues to support                    children.
                                               We’re borrowing more money in                        the bill.                                                                   b 1330
                                            Washington with this program that we                      Mr. FRANK of Massachusetts. Mr.
                                            don’t have to help Americans borrow                     Chairman, I yield myself the balance of                  These children cannot afford a future
                                            more money at home that they can’t                      my time.                                               where its Federal Government spends
                                            afford for housing they can’t afford.                     A week ago when we debated this in                   $8 billion more every day than it takes
                                            Mr. Chairman, this is madness. When                     committee, the author of the bill, the                 in.
                                            will this stop and when will the politi-                gentleman from Illinois (Mr. DOLD),                      Now, the ranking member has criti-
                                            cians in Washington understand that                     was telling people that if they joined                 cized our military spending. I could
                                            we’re not going to be able to borrow                    this program they would have a tax li-                 have a picture of my grandchildren up,
                                            and spend our way to prosperity? The                    ability. He was wrong. It wasn’t his                   and I could have a picture of one of my
                                            American people are tired of this. They                 fault. He was told that that was the                   little granddaughters whose dad served
                                            want Washington leaders to step up, re-                 case. He dutifully read what he was                    in the U.S. Marines. Their unit served
                                            duce spending, and eliminate programs                   told. You haven’t heard that again be-                 in Afghanistan and in Iraq. So I make
                                            that aren’t working.                                    cause he found out that was wrong.                     no apology for supporting our troops.
                                               Mr. Chairman, I ask today that we                      He was also told that it was going to                Now if the President decides to call
                                            pass this legislation and restore fiscal                be $50 million disbursed. They don’t                   them home, my son would support
                                            sanity to Washington.                                   seem to be clear on what that means.                   that.
                                               Mr. FRANK of Massachusetts. How                      No, $50 million has not been spent on                    Now, Ranking Member FRANK said
                                            much time is remaining on both sides,                   any individual. Fifty million has been                 this sits in a fund. This program that
                                            Mr. Chairman?                                           set aside in a letter of credit if nec-                has helped 44 families whose average
                                               The CHAIR. The gentleman from                        essary in the future to pay for defaults.              mortgage was $330,000—that’s more
                                            Massachusetts has 21⁄2 minutes remain-                  So this million dollars per loan is, of                than the cost of a home in my district.
                                            ing. The gentleman from Alabama has                     course, a fantasy.                                     But here is President Obama’s report
                                            41⁄4 minutes remaining.                                   Now, it is true, the program has not                 to us that $50 million has been dis-
                                               Mr. FRANK of Massachusetts. I have                   yet had a major impact. And if it does                 bursed, but the alarming figure is $8.12
                                            only one remaining speaker. I will                      not prove itself out, it never will. It                billion that’s obligated.
                                            defer until the gentleman has his last                  cannot be both wildly expensive and                      The gentlelady from New York said
                                            speaker.                                                nonexistent. It is there. If we get an                 that the banks—Citibank, Bank of
                                               Mr. BACHUS. Mr. Chair, I yield 21⁄2                  agreement involving all the attorneys                  America—they’re all lining up to use
                                            minutes to the gentlelady from Illinois                 general of both parties, involving the                 this program. I would be too. This
                                            (Mrs. BIGGERT).                                         regulators and the financial institu-                  transfers obligations from lenders to
                                               Mrs. BIGGERT. I thank the gen-                       tions, this will be one of the tools that              the taxpayer. As long as these mort-
                                            tleman for yielding.                                    will accommodate people. CBO does                      gages were making money, the banks
                                               Mr. Chairman, President Ronald                       think there could be a loss. Their pre-                profited. But all of a sudden when
                                            Reagan famously said—with tongue in                     diction is, their best guess—and they’re               they’re underwater and a borrower
                                            cheek, no doubt—that the closest thing                  the best objective element we have—                    maybe can’t make the payment, hey, if
                                            to eternal life on this Earth is a Fed-                 you could get an amount of $12,000 or                  I was a bank, I would say, yeah, let the
                                            eral Government program.                                so per loan lost here. Not a million dol-              government, let the taxpayers reduce
                                               I rise today in support of H.R. 830,                 lars; 12,000. It is part of a panoply of               this mortgage. That ought to be be-
                                            legislation offered by my friend from                   projects to try and reduce foreclosures                tween the bank and the homeowners.
                                            Illinois (Mr. DOLD). At the risk of dis-                and help the economy deal with this                      Forty-two families? You say all these
                                            proving the late President’s axiom, let                 crisis.                                                four programs we’re going to debate
                                            me just say that H.R. 830 will dem-                       And for people who, and I repeat it—                 this week and next week—which cost
                                            onstrate that Congress does have the                    they don’t like it—they’ll send money                  billions of dollars—they’re going to
                                            good sense, the fortitude, and the                      to Brazil, they’ll send money to Afghan                help half a million families? There are
                                            wherewithal to bring an end to a Fed-                   cities, they’ll send money to Iraqi secu-              12 million families that are under-
                                            eral program, especially one that is not                rity, they’ll subsidize farmers at more                water.
                                            working.                                                than $250,000 a year, but $12,000 per                    Let’s talk about something very im-
                                               The program in question is the FHA                   homeowner at most is too much for                      portant. If we don’t get our financial
                                            Refinancing Program, which was au-                      them. And it isn’t just for the home-                  house in order, I’ll quote the words of
                                            thorized under the broadest of provi-                   owners; it is a necessary part of getting              Admiral Mike Mullen on August 25 be-
                                            sions in the TARP legislation back in                   out of our economic crisis.                            fore CNN, and I will close with this,
                                            2008. In 2010, the program was con-                       So I hope that this is defeated. I ap-               ‘‘The most significant threat to our na-
                                            ceived in haste, enacted with no vote in                preciated what the gentleman from Ne-                  tional security is our debt.’’ And that
                                            Congress, and was designed to augment                   vada said. Yes, it can be improved. The                threat comes from this body and the
                                            another failed program, the Making                      fact that only 44 people have been in-                 administration. It’s time to cut spend-
                                            Homes Affordable Program, or HAMP,                      volved so far means they are pro-                      ing. Think about them. Think about
tjames on DSKG8SOYB1PROD with HOUSE




                                            which has done more harm than good.                     ceeding,     appropriately,   cautiously.              their future.
                                               Under the FHA Refinancing Pro-                       This is a program with great promise.                    Ms. EDDIE BERNICE JOHNSON of Texas.
                                            gram, the FHA is directed to use TARP                   It may not turn out, but if a promise                  Mr. Chair, I rise in opposition to H.R. 830, the
                                            funds to refinance mortgages that are                   doesn’t turn out, then it doesn’t cost                 FHA Refinance Program Termination Act.
                                            current but underwater. Its record has                  anything. And if it does turn out to be                  This legislation would end the FHA’s short-
                                            been abysmal, with the FHA Commis-                      a workable part of an overall solution,                term refinance program authorized under the
                                            sioner stating during our hearing last                  it will be money much better spent                     Troubled Asset Relief Program.



                                      VerDate Mar 15 2010   03:23 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00017   Fmt 7634   Sfmt 9920   E:\CR\FM\K10MR7.031   H10MRPT1
                                            H1686                                             CONGRESSIONAL RECORD — HOUSE                                                           March 10, 2011
                                               A program designed to help homeowners                effectively and prudently. Lenders must set up           No amendment to the committee
                                            refinance their existing mortgage for lower in-         an operational infrastructure to utilize this op-      amendment in the nature of a sub-
                                            terest rates.                                           tion, and a great deal of coordination is re-          stitute is in order except those received
                                               With declining home values, borrowers are            quired throughout the mortgage chain. As of            for printing in the portion of the Con-
                                            caught in mortgages that they can no longer             February 11th, 23 FHA-approved lenders are             gressional RECORD designated for that
                                            afford.                                                 participating in the program, including Wells          purpose in a daily issue dated March 9,
                                               This is because their rates have reset or be-        Fargo and GMAC/Ally, which intend to deliver           2011, or earlier and except pro forma
                                            cause their interest-only payments have not             several thousand loans. FHA also indicates             amendments for the purpose of debate.
                                            allowed them to grow any equity in their                that numerous other lenders are in the proc-           Each amendment so received may be
                                            homes.                                                  ess of developing the capability to utilize the        offered only by the Member who causes
                                               They are making their payments—but just              program by midyear.                                    it to be printed or a designee and shall
                                            barely.                                                    Not only does the Republican Leadership             be considered read if printed.
                                               Mr. Chair, we should continue to help hard           seek to terminate the FHA Refinance Pro-                 The Clerk will designate section 1.
                                            working Americans who are paying their bills            gram, but it also seeks to terminate the Home            The text of section 1 is as follows:
                                            on time every month stay in their homes.                Affordable Modification Program, the Neigh-              Be it enacted by the Senate and House of Rep-
                                               Ending this vital recovery program with no                                                                  resentatives of the United States of America in
                                                                                                    borhood Stabilization Program, and the Emer-           Congress assembled,
                                            alternative plan is just wrong.                         gency Homeowners Loan Program. It is clear             SECTION 1. SHORT TITLE.
                                               The Republicans reckless spending pro-               that more needs to be done to help struggling            This Act may be cited as the ‘‘FHA Refinance
                                            posals will move our country backwards not              homeowners stay in their homes. However,               Program Termination Act’’.
                                            only domestically but globally.                         terminating the very programs that were es-             AMENDMENT NO. 9 OFFERED BY MRS. MALONEY
                                               Eliminating this program will cost us more in        tablished to do so is not the solution. I encour-        Mrs. MALONEY. Mr. Chairman, I
                                            the long-term.                                          age my colleagues on the other side of the             have an amendment at the desk.
                                               While I believe cuts are necessary to ad-            aisle to come to the table and present real so-          The CHAIR. The Clerk will designate
                                            dress the Nation’s long-term fiscal problems, it        lutions to this epidemic. If a Member feels this       the amendment.
                                            must be done responsibly and with the Amer-             program has not benefited enough home-                   The text of the amendment is as fol-
                                            ican public’s interest in mind.                         owners, he or she should suggest a way to do           lows:
                                               I encourage my colleagues to oppose this             so and we can go from there. Instead, Repub-             After section 1, insert the following new
                                            bill.                                                   licans are placing politics before people. Our         section:
                                               Mr. DINGELL. Mr. Chair, I rise in opposition         Nation needs solutions, not denunciations.             SEC. 2. CONGRESSIONAL FINDINGS.
                                            to H.R. 830, a hasty political ploy that will ter-         Mr. Chair, I strongly urge my colleagues to           The Congress finds that—
                                            minate a promising program. I refuse to let my                                                                   (1) there are 35,610 underwater mortgages
                                                                                                    vote against this bill.
                                            Republican colleagues, determined to appear                                                                    in Alabama;
                                                                                                       Mr. VAN HOLLEN. Mr. Chair, the FHA Refi-              (2) 7,801 underwater mortgages in Alaska;
                                            fiscally austere at any cost, cut budding initia-       nance Program proposed for termination in to-            (3) 648,387 underwater mortgages in Ari-
                                            tives that are in the best interest of the coun-        day’s legislation is designed to provide dis-          zona;
                                            try.                                                    tressed homeowners mortgage relief by using              (4) 27,580 underwater mortgages in Arkan-
                                               The FHA Refinance Program is tailored to             FHA loan guarantee authority to incentivize            sas;
                                            benefit     responsible     homeowners—home-            holders of existing single family loans to re-           (5) 2,172,700 mortgages in California;
                                            owners who, through principal write-downs,              duce the outstanding principal balance of their          (6) 221,097 underwater mortgages in Colo-
                                            will be able to stay in their homes. It is also         loans by at least 10% in conjunction with an           rado;
                                            structured to protect lenders from possible                                                                      (7) 97,244 underwater mortgages in Con-
                                                                                                    FHA refinance when the principal balance of a          necticut;
                                            foreclosure losses and save communities from            borrower’s loan is greater than the property’s           (8) 23,906 underwater mortgages in Dela-
                                            increased blight. Ten states, including my              current value. Importantly, participating home-        ware;
                                            home state of Michigan, posted foreclosure              owners must be current on their existing loan,           (9) 2,029,128 underwater mortgages in Flor-
                                            discounts of more than 35 percent in 2010.              and all other FHA safety and soundness un-             ida;
                                            We must use all our tools at hand to stem this          derwriting standards continue to apply. Any              (10) 449,971 underwater mortgages in Geor-
                                            massive foreclosure epidemic.                           losses under the program are covered by                gia;
                                               I hear daily from struggling homeowners              funds already set aside by the TARP, adding              (11) 24,664 underwater mortgages in Hawaii;
                                            who are trying to keep afloat. Negative equity                                                                   (12) 61,566 underwater mortgages in Idaho;
                                                                                                    no additional exposure to the FHA’s capital re-          (13) 431,050 underwater mortgages in Illi-
                                            mortgages are plaguing our country from                 serves.                                                nois;
                                            coast to coast. At the end of last year, 11.1              Mr. Chair, while I am aware of—and frankly,           (14) 68,196 underwater mortgages in Indi-
                                            million, or 23.1 percent, of all residential mort-      to some extent sympathetic to—the criticism            ana;
                                            gages were in negative equity. In Michigan,             and frustration around the pace and scope of             (15) 28,976 underwater mortgages in Iowa;
                                            over 36 percent of mortgages were in negative           this program to date, I would also point out             (16) 32,787 underwater mortgages in Kansas;
                                            equity. Home prices are expected to fall an-            that it has only been operational since October          (17) 24,880 underwater mortgages in Ken-
                                            other five to ten percent in 2011. Millions of          of last year. Furthermore, as a purely vol-            tucky;
                                            borrowers are being held captive in their                                                                        (18) 298,554 underwater mortgages in Mary-
                                                                                                    untary program, its success clearly hinges on
                                            homes, unable to move or sell their properties.                                                                land;
                                                                                                    the active participation of our major loan               (19) 222,599 underwater mortgages in Mas-
                                            Keeping programs like the FHA Refinance                 servicers, two of whom—Wells Fargo and Ally            sachusetts;
                                            Program alive is crucial to spurring economic           Financial—have just recently announced their             (20) 519,716 underwater mortgages in Michi-
                                            recovery and giving the mortgage industry the           intention to let qualified borrowers take advan-       gan;
                                            jump-start it so desperately needs.                     tage of the program. Finally, with an estimated          (21) 90,090 underwater mortgages in Min-
                                               My Republican colleagues like to point to            one in five homeowners currently underwater            nesota;
                                            the fact that since the program has only spent          on their mortgages, it is clear to me that the           (22) 122,543 underwater mortgages in Mis-
                                            $50 million, it must be ineffective. I find it inter-                                                          souri;
                                                                                                    housing crisis is not yet behind us.
                                            esting that a Republican argument against a                                                                      (23) 8,650 underwater mortgages in Mon-
                                                                                                       By providing struggling but credit-worthy
                                                                                                                                                           tana;
                                            program is that it hasn’t cost the government           homeowners with a reduced monthly payment                (24) 21,388 underwater mortgages in Ne-
                                            enough. So much for fiscal austerity. In fact,          and a mortgage that is more aligned with ac-           braska;
                                            the FHA Refinance Program was specifically              tual property values, the FHA Refinance Pro-             (25) 390,192 underwater mortgages in Ne-
                                            designed to be cost-effective for the govern-           gram can help prevent foreclosures and sta-            vada;
                                            ment. Its allocated funds only cover incre-             bilize the housing market, which is in every             (26) 37,488 underwater mortgages in New
                                            mental credit and incentive costs, and will not         American’s long term interest.                         Hampshire;
                                                                                                                                                             (27) 286,293 underwater mortgages in New
tjames on DSKG8SOYB1PROD with HOUSE




                                            be spent unless a borrower defaults under the              The CHAIR. All time for general de-
                                            program. Since no borrowers have defaulted,             bate has expired.                                      Jersey;
                                                                                                                                                             (28) 29,375 underwater mortgages in New
                                            no money has been spent on loans.                          Pursuant to the rule, the amendment
                                                                                                                                                           Mexico;
                                               Let us not forget how hasty this bill is—the         in the nature of a substitute printed in                 (29) 129,633 underwater mortgages in New
                                            FHA Refinance Program has only been avail-              the bill shall be considered as an origi-              York;
                                            able since September. It is no surprise that it         nal bill for the purpose of amendment                    (30) 160,007 underwater mortgages in North
                                            takes time for such complex programs to work            under the 5-minute rule.                               Carolina;




                                      VerDate Mar 15 2010   04:42 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00018   Fmt 7634   Sfmt 0634   E:\CR\FM\A10MR7.004   H10MRPT1
                                            March 10, 2011                                    CONGRESSIONAL RECORD — HOUSE                                                                    H1687
                                              (31) 3,582 underwater mortgages in North              are in financial difficulty. Banks then                the vote on this bill how many Ameri-
                                            Dakota;                                                 can get an insured FHA guarantee and                   cans across this country will not be
                                              (32) 441,379 underwater mortgages in Ohio;            move forward and people can keep liv-                  helped if the majority gets their pas-
                                              (33) 24,411 underwater mortgages in Okla-
                                                                                                    ing in their homes and can keep par-                   sage of their bill that would terminate
                                            homa;
                                              (34) 108,335 underwater mortgages in Or-              ticipating in the economy.                             a program that has the potential of
                                            egon;                                                     Because of this vote today, if the ma-               helping literally millions in America.
                                              (35) 132,805 underwater mortgages in Penn-            jority wins, homeowners across the                       I urge a ‘‘yes’’ vote on my amend-
                                            sylvania;                                               country may not have the opportunity                   ment.
                                              (36) 45,511 underwater mortgages in Rhode             to take advantage of the program that                                       b 1340
                                            Island;                                                 has just begun, and which should be
                                              (37) 85,226 underwater mortgages in South             made, in my opinion, available to                                        POINT OF ORDER
                                            Carolina;                                               them.                                                    Mr. BACHUS. Mr. Chairman, I make
                                              (38) 133,956 underwater mortgages in Ten-                                                                    a point of order against the amend-
                                                                                                      Now what this does, it goes down all
                                            nessee;
                                                                                                    of the impacts across the country. It                  ment because in my opinion it violates
                                              (39) 367,954 underwater mortgages in Texas;
                                              (40) 98,093 underwater mortgages in Utah;             shows that in my home State of New                     clause 7 of rule XVI which requires
                                              (41) 276,910 underwater mortgages in Vir-             York there are over 129,000 mortgages                  that an amendment be germane to the
                                            ginia;                                                  underwater that would not be able to                   matter it’s amending.
                                              (42) 209,577 underwater mortgages in Wash-            apply for this program to allow people                   It’s not germane to the bill because
                                            ington;                                                 to stay in their homes. In Chairman                    it’s outside the scope of the bill and
                                              (43) 15,240 underwater mortgages in Wash-             BACHUS’ State, there are over 35,000                   fails to draw the nexus to the bill.
                                            ington D.C.;                                                                                                     The CHAIR. Does any other Member
                                                                                                    mortgages underwater. In Florida,
                                              (44) and 81,267 underwater mortgages in                                                                      wish to be heard on the point of order?
                                            Wisconsin.                                              there are more than 2 million mort-
                                              (45) the aggregate number of mortgages es-            gages underwater, and they have no al-                   The Chair recognizes the gentle-
                                            timated to be underwater in such States is              ternative of any way to help these peo-                woman from New York.
                                            10,780,236; and                                         ple. And these numbers are from an                       Mrs. MALONEY. The amendment is
                                              (46) by voting to terminate the FHA Refi-             independent company’s study.                           germane, Mr. Chairman.
                                            nance Program under this Act without a sug-               If you go to California, our largest                   This program has the potential to
                                            gested replacement, the Congress is voting              State, over 2 million homes are under-                 help underwater mortgages across our
                                            to terminate a program that may have                    water. Nevada, 390,000 individuals are                 great country, which is germane to the
                                            helped these underwater borrowers.                                                                             bill we’re debating today, because the
                                                                                                    facing the loss of their homes. In Ari-
                                               Mr. BACHUS. Mr. Chairman, I re-                      zona, there are over 648,000 families                  bill terminates the potential of this
                                            serve a point of order against the                      that are underwater. Their home is not                 help. You have no findings in this bill
                                            amendment.                                              worth what they’re paying for it, what                 that you’re rushing to the floor.
                                               The CHAIR. A point of order is re-                   the mortgage is.                                         It is germane to talk about the hun-
                                            served.                                                   So this program is one that I think is               dreds of thousands of homeowners that
                                               The gentlewoman from New York is                     thoughtful, one that has only $50 mil-                 are out there that possibly could lose
                                            recognized for 5 minutes in support of                  lion as sort of a line of credit that will             their home because this program is
                                            her amendment.                                          be pulled down if there are defaults.                  being terminated. This is germane, in
                                               Mrs. MALONEY. Mr. Chairman, my                       But the banks participating have very                  my opinion, to the underlying bill.
                                            amendment has the purpose of making                     strict standards, as does the FHA. It                    The CHAIR. Does any other Member
                                            very clear what we’re doing today to                    has to be their primary residence. They                wish to be heard on the point of order?
                                            the American people. This amendment                     have to provide full documentation. No                   The Chair recognizes the gentleman
                                            makes clear that we are ending a pro-                   more of these ‘‘no doc’’ loans. They                   from Alabama.
                                            gram that has the potential to help                     must be current on the mortgage. They                    Mr. BACHUS. Mr. Chair, she lists the
                                            hundreds of thousands of underwater                     must have a job. They have to have                     number of mortgages that are under-
                                            borrowers.                                              many, many levels that they have to                    water and says that this program may
                                               H.R. 830, the FHA Refinance Program                  meet before they get the loan. But at                  help them. Obviously, there are many
                                            Termination Act, ignores the under-                     least it’s a lifeline to these 12 million              of those, the buyers are behind on their
                                            water borrowers of this country and                     families whose homes are underwater.                   payments and they wouldn’t qualify for
                                            does nothing to help families save their                  With declining home values, bor-                     help. Just the number 44 ought to tell
                                            homes.                                                  rowers are caught in mortgages they                    you that when you list 12 million
                                               Very simply, the bill ends a program                 no longer can afford because their rates               homeowners and then say that the ter-
                                            that has the potential to help hundreds                 have reset or because their interest-                  mination of this program would have
                                            of thousands of people whose mort-                      only payments have not allowed them                    helped is quite a stretch. There are cer-
                                            gages now exceed the value of their                     to grow any equity in their homes.                     tain other qualifications under this
                                            home, and also help the communities                     They are making their payments, but                    legislation that are not met by simply
                                            and help the overall economy.                           just barely. And so this one is there to               being underwater.
                                               The majority crafted a so-called                     help them. And it simply adds findings                   The CHAIR. Does the gentlewoman
                                            ‘‘open rule’’ in such a way that it’s                   to the bill with the number of under-                  from New York wish to be heard on the
                                            nearly impossible to offer any sub-                     water mortgages in each State that                     point of order?
                                            stantive amendments—a number were                       we’ve secured the data for so that it be-                Mrs. MALONEY. Yes, I do.
                                            voted down on a party line in the com-                  comes very clear to the American peo-                    As a point of information, there are
                                            mittee debates—in response to this re-                  ple how many homeowners in each                        very strict criteria from the FHA and
                                            ality.                                                  State we are not helping if we do what                 from the individual banks that are vol-
                                               In an effort to highlight the true na-               the majority wants, to terminate this                  untarily participating, and one of those
                                            ture of this harmful bill, my amend-                    program.                                               criteria is that you must be current on
                                            ment identifies the numbers in each                       And I might say this program is one                  your payments. You must be current.
                                            State of the hundreds of thousands of                   of four that the Obama administration                  What the gentleman said was inac-
                                            underwater borrowers across the coun-                   has put forward to help homeowners                     curate, that they could be behind on
                                            try and makes clear that the Repub-                     stay in their homes and to help sta-                   their payments or not making their
                                            lican majority has no solution to the                   bilize our economy, which is still frag-               payments. They’re having difficulty
tjames on DSKG8SOYB1PROD with HOUSE




                                            problem, nor do they have any desire                    ile and is still recovering. Housing is 25             making it because their home value is
                                            to find one.                                            percent of our economy, according to                   not equal to what the mortgage is. And
                                               Americans must be made aware of                      many economists. So the strength of                    so it’s difficult. But they must all be
                                            the intention of this majority. This                    housing is important to the overall                    current on their payments.
                                            program allows borrowers to write                       health of our Nation’s economic future.                  The CHAIR. The gentlewoman needs
                                            down at least 10 percent to reduce the                    So I urge my colleagues to support                   to confine her remarks to the point of
                                            debt burden. They are all paying. They                  the amendment, to make it clear by                     order.



                                      VerDate Mar 15 2010   04:08 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00019   Fmt 7634   Sfmt 0634   E:\CR\FM\A10MR7.013   H10MRPT1
                                            H1688                                                                                   CONGRESSIONAL RECORD — HOUSE                                                                                              March 10, 2011
                                              Ms. JACKSON LEE of Texas. Mr.                                                                  fornia, over 2 million people’s homes                                      banks do a good job and do not hand
                                            Chairman, I would like to be heard on                                                            are underwater; in Florida, over 2 mil-                                    out loans unless people can actually
                                            the point of order.                                                                              lion homes are underwater; Arizona,                                        repay them. And this will be a tool to
                                              The CHAIR. The Chair recognizes the                                                            648.                                                                       move forward not only to help people,
                                            gentlewoman from Texas.                                                                            And in my own State, over 129,000                                        but to help the overall economy.
                                              Ms. JACKSON LEE of Texas. First of                                                             people will not have the access to this                                       Now, what I find very troubling
                                            all, the gentleman from Alabama was                                                              program that allows them to adjust                                         about this is that my friends on the
                                            arguing the merits of the legislation.                                                           their mortgages so that they reflect                                       other side of the aisle want to termi-
                                            These are findings that pertain to the                                                           the true value of their homes, make                                        nate four antiforeclosure programs, but
                                            results that would occur from the lan-                                                           their payments on that value so that                                       they have no alternative. It’s sort of
                                            guage in the bill.                                                                               they can move forward and be part of                                       like their approach to jobs. They have
                                              The bill is eliminating the existing                                                           the community, keep these homes from                                       not come forward with any program to
                                            funds or leftover funds for FHA refi-                                                            becoming blight and emptied in an                                          help create jobs. They have not come
                                            nance. The amendment clearly lays out                                                            area.                                                                      forward with any program to help peo-
                                            the impacted persons connected to the                                                              We all have stories in our districts                                     ple stay in their homes. It’s part of the
                                            elimination. Therefore, this is germane                                                          and across the Nation where people                                         ‘‘so be it’’ attitude. You’re on your
                                            because it relates to the language of                                                            cannot make their mortgage payments                                        own. We’re not going to help you.
                                            the amendment and the intent of the                                                              because they have lost values in their                                        But this is a program that helps peo-
                                            amendment.                                                                                       home. They are deserting them. They                                        ple help themselves adjust to the re-
                                              Twelve million people left behind,                                                             are leaving them. In some States, they                                     ality of what their homes are actually
                                            thousands of homeowners in different                                                             are literally bulldozing the homes un-                                     worth. And I think that it’s important
                                            States, and the fact that there is no                                                            derground because no one can afford to                                     that this information of how many peo-
                                            other solution to these homeowners ex-                                                           live in them. This is an answer to some                                    ple, the 12 million people and where
                                            cept FHA refinance, it is a germane                                                              of the challenges.                                                         they live in America, is important in-
                                            amendment. The findings are simply                                                                 And my colleagues on the other side
                                                                                                                                                                                                                        formation that should be part of this
                                            laying out the impact. We do that in                                                             of the aisle talk about the cost. Well, I
                                                                                                                                                                                                                        bill.
                                            all of our bills to put findings on what                                                         would say that the cost—not only to
                                            the impact of legislation would be.                                                              the individual homeowner, but to the                                          And that’s why I am now respectfully
                                              I ask the Chairman to consider the                                                             overall economy—will be greater by                                         requesting unanimous consent to place
                                            gentlelady’s amendment being ger-                                                                terminating the four efforts, the four                                     into the RECORD the listing of where
                                            mane. The findings are germane, and it                                                           antiforeclosure efforts from the Obama                                     these 12 million people live so people
                                            is doing simply that of listing the ele-                                                         administration to help with the hous-                                      will know these are the people we are
                                            ments of the impact of this legislation.                                                         ing crisis.                                                                saying ‘‘no,’’ ‘‘so be it,’’ ‘‘we’re not
                                              I ask for a waiver of the point of                                                               And we know that the subprime cri-                                       going to be there to help you.’’
                                            order.                                                                                           sis was a scandal. Many people were                                           And let me tell you, my follow col-
                                              The CHAIR. The Chair is prepared to                                                            not—got into homes they couldn’t af-                                       leagues. I would be cautious about vot-
                                            rule on the point of order.                                                                      ford under misinformation.                                                 ing for this, because you’re voting
                                              The gentleman from Alabama makes                                                                 We have helped other areas of our                                        against your economy. You’re voting
                                            a point of order that the amendment                                                              economy. We certainly should help the                                      against your State. You are voting
                                            offered by the gentlewoman from New                                                              homeowners, the working Americans                                          against your own colleagues, your own
                                            York is not germane.                                                                             to help them through this economic                                         residents and neighbors who may need
                                              The bill addresses repeal of a Federal                                                         crisis, too.                                                               this. We know the trouble that’s in this
                                            Housing Administration program that                                                                And we have to remember that al-                                         economy. Practically every family in
                                            provides for refinancing of a specified                                                          though we are digging our way out of                                       America has some relative who’s lost a
                                            set of mortgages.                                                                                this Great Recession, the recovery has                                     job or is unemployed. So this is some
                                              One of the fundamental principles of                                                           been slow. We are still in a fragile re-                                   way to help with this economic recov-
                                            germaneness is that the amendment                                                                covery. The economists testified before                                    ery. It is thoughtful. It is a good pro-
                                            must relate to the subject matter of                                                             the Financial Services Committee that                                      gram.
                                            the underlying bill. The bill is confined                                                        housing was 25 percent of our economy.                                        And I urge my colleagues to vote
                                            to a specific type of refinancing pro-                                                             So, helping people stay in their                                         against the ‘‘so be it’’ bill the Repub-
                                            gram. The amendment seeks, in part,                                                              homes, I would say that our overall                                        licans have before us today and to real-
                                            to address mortgages on broader bases,                                                           economy has a stake in it.                                                 ly work with, in a bipartisan way, the
                                            beyond the ambit of the bill.                                                                      Now, some people said, well, the                                         Obama administration to help working
                                              The amendment is therefore not ger-                                                            banks will run in and do this. Banks                                       Americans, struggling Americans stay
                                            mane. The point of order is sustained.                                                           are not going to do this unless they                                       in their home.
                                              Mrs. MALONEY. I move to strike the                                                             think that the loan is going to be paid
                                            last word.                                                                                       and they’re not going to be hurt with
                                                                                                                                                                                                                                                     b 1350
                                              The CHAIR. The gentlewoman from                                                                it. And the standards from FHA are
                                            New York is recognized for 5 minutes.                                                            very high. You have to be current. You                                       It’s the least that we can do as a car-
                                              Mrs. MALONEY. I’m distressed with                                                              have to have a job. You have to live in                                    ing Nation, absolutely the least we can
                                            this ruling because I think it is ger-                                                           your home. You have to have a proven                                       do as a caring Nation. So I urge my
                                            mane that people will lose their homes,                                                          track record. You have to have good                                        colleagues, and I would be very cau-
                                            that they are eliminating a program                                                              credit before you can be approved. So                                      tious in your vote, because I believe
                                            that is just starting that is thoughtful,                                                        that is why only 50 million is the line                                    your constituents are going to remem-
                                            that would give FHA financing and                                                                of credit that will be drawn down if                                       ber this vote if this program is termi-
                                            guarantees to help people stay in their                                                          there are foreclosures.                                                    nated and their lifeline, their ability to
                                            homes, and that people in Nevada, over                                                             Hopefully the economy improves,                                          stay in their homes, is terminated be-
                                            390,000, could be affected by this; Cali-                                                        people keep their jobs. Hopefully the                                      cause of your vote today.
                                                                                                                                                          TABLE 1: NEGATIVE EQUITY BY STATE*
                                                                                                                    Properties With a Mortgage Outstanding                                                                                    $ Outstanding
tjames on DSKG8SOYB1PROD with HOUSE




                                                                                                                                  Negative Equity      Near** Negative    Negative Equity   Near** Negative                           Mortgage Debt Out-                              Loan-to-
                                                                         State                                   Mortgages                                                                                     Total Property Value                           Net Homeowner Equity
                                                                                                                                    Mortgages          Equity Mortgages       Share          Equity Share                                  standing                                  Value Ratio

                                            Alabama ........................................................           340,665              35,610               19,188            10.5%               5.6%         65,482,055,550         43,970,078,384           21,511,977,166          67%
                                            Alaska ...........................................................          87,286               7,801                5,160             8.9                  5.9        23,773,756,773         15,920,518,570            7,853,238,203            67
                                            Arizona ..........................................................       1,333,398             648,387               63,304            48.6                  4.7       263,693,025,194        243,760,655,061           19,932,370,133            92
                                            Arkansas .......................................................           238,011              27,580               14,360            11.6                  6.0        37,303,484,103         27,450,225,612            9,853,258,491            74
                                            California ......................................................        6,870,914           2,172,700              299,067            31.6                  4.4     2,864,273,476,858      2,008,766,937,342          855,506,539,516            70
                                            Colorado ........................................................        1,125,434             221,097               91,187            19.6                  8.1       301,289,945,528        217,120,459,818           84,169,485,710            72




                                      VerDate Mar 15 2010                     04:08 Mar 11, 2011                  Jkt 099060      PO 00000           Frm 00020      Fmt 7634      Sfmt 0634     E:\CR\FM\K10MR7.052              H10MRPT1
                                            March 10, 2011                                                                            CONGRESSIONAL RECORD — HOUSE                                                                                                                H1689
                                                                                                                                                      TABLE 1: NEGATIVE EQUITY BY STATE*—Continued
                                                                                                                      Properties With a Mortgage Outstanding                                                                                    $ Outstanding

                                                                                                                                    Negative Equity      Near** Negative    Negative Equity   Near** Negative                           Mortgage Debt Out-                              Loan-to-
                                                                         State                                     Mortgages                                                                                     Total Property Value                           Net Homeowner Equity
                                                                                                                                      Mortgages          Equity Mortgages       Share          Equity Share                                  standing                                  Value Ratio

                                            Connecticut ...................................................              816,560              97,244               29,957            11.9                  3.7       294,814,146,661        171,517,175,208         123,296,971,453            58
                                            Delaware .......................................................             179,322              23,906                8,937            13.3                  5.0        47,059,588,802         31,949,546,484          15,110,042,318            68
                                            Florida ...........................................................        4,459,951           2,029,128              182,323            45.5                  4.1       853,646,775,841        757,212,788,734          96,433,987,107            89
                                            Georgia ..........................................................         1,605,825             449,971              120,854            28.0                  7.5       319,934,838,691        255,319,644,351          64,615,194,340            80
                                            Hawaii ...........................................................           229,600              24,664                8,280            10.7                  3.6       117,791,198,842         65,339,432,694          52,451,766,148            55
                                            Idaho .............................................................          243,589              61,566               12,927            25.3                  5.3        48,204,517,879         35,737,930,659          12,466,587,220            74
                                            Illinois ...........................................................       2,227,602             431,050              108,239            19.4                  4.9       534,999,520,161        377,625,407,977         157,374,112,184            71
                                            Indiana ..........................................................           603,484              68,196               28,936            11.3                  4.8        91,672,823,585         64,195,877,062          27,476,946,523            70
                                            Iowa ..............................................................          334,689              28,976               14,366             8.7                  4.3        51,019,867,858         34,150,823,254          16,869,044,604            67
                                            Kansas ..........................................................            295,839              32,787               16,284            11.1                  5.5        53,431,665,604         37,737,206,158          15,694,459,446            71
                                            Kentucky ........................................................            279,187              24,880               14,092             8.9                  5.0        47,549,597,328         32,335,774,221          15,213,823,107            68
                                            Louisiana ......................................................                  NA                  NA                   NA            NA                    NA                     NA                     NA                      NA            NA
                                            Maine ............................................................                NA                  NA                   NA            NA                    NA                     NA                     NA                      NA            NA
                                            Maryland .......................................................           1,358,672             298,554               67,580            22.0                  5.0       433,409,001,574        298,109,259,531         135,299,742,043            69
                                            Massachusetts ..............................................               1,494,099             222,599               51,704            14.9                  3.5       546,053,917,907        329,062,834,394         216,991,083,513            60
                                            Michigan .......................................................           1,381,232             519,716               76,403            37.6                  5.5       198,169,103,537        169,373,043,369          28,796,060,168            85
                                            Minnesota .....................................................              554,535              90,090               27,608            16.2                  5.0       124,901,317,584         81,787,965,185          43,113,352,399            65
                                            Mississippi ....................................................                  NA                  NA                   NA            NA                    NA                     NA                     NA                      NA            NA
                                            Missouri ........................................................            779,328             122,543               44,131            15.7                  5.7       137,735,363,892         98,445,466,785          39,289,897,107            71
                                            Montana ........................................................             112,444               8,650                3,939             7.7                  3.5        28,244,797,730         16,968,913,610          11,275,884,120            60
                                            Nebraska .......................................................             221,686              21,388               13,072             9.6                  5.9        35,462,342,354         25,920,022,837           9,542,319,517            73
                                            Nevada ..........................................................            586,515             390,192               23,037            66.5                  3.9       103,720,996,430        123,072,698,809        ¥19,351,702,379            119
                                            New Hampshire .............................................                  211,489              37,488               11,351            17.7                  5.4        51,974,243,397         35,837,313,271          16,136,930,126            69
                                            New Jersey ....................................................            1,882,603             286,293               78,230            15.2                  4.2       678,172,085,088        415,710,918,011         262,461,167,077            61
                                            New Mexico ...................................................               234,004              29,375               10,847            12.6                  4.6        55,009,963,072         36,551,762,344          18,458,200,728            66
                                            New York .......................................................           1,838,917             129,633               40,013             7.0                  2.2       835,125,621,032        415,765,632,474         419,359,988,558            50
                                            North Carolina ..............................................              1,521,406             160,007              101,945            10.5                  6.7       317,535,658,347        223,145,876,102          94,389,782,245            70
                                            North Dakota .................................................                48,415               3,582                1,478             7.4                  3.1         8,291,290,055          4,967,349,459           3,323,940,596            60
                                            Ohio ...............................................................       2,204,754             441,379              137,601            20.0                  6.2       324,006,229,515        242,010,058,915          81,996,170,600            75
                                            Oklahoma ......................................................              408,155              24,411               14,962             6.0                  3.7        60,039,397,170         42,451,471,333          17,587,925,837            71
                                            Oregon ...........................................................           693,304             108,335               38,849            15.6                  5.6       179,130,635,748        122,988,902,147          56,141,733,601            69
                                            Pennsylvania .................................................             1,794,563             132,805               58,312             7.4                  3.2       401,020,775,572        248,939,681,403         152,081,094,169            62
                                            Rhode Island .................................................               227,897              45,511                8,120            20.0                  3.6        64,414,910,589         39,693,719,643          24,721,190,946            62
                                            South Carolina ..............................................                598,223              85,226               37,091            14.2                  6.2       131,254,482,178         92,349,858,129          38,904,624,049            70
                                            South Dakota ................................................                     NA                  NA                   NA            NA                    NA                     NA                     NA                      NA            NA
                                            Tennessee .....................................................              962,894             133,956               67,386            13.9                  7.0       166,572,683,790        118,119,771,078          48,452,912,712            71
                                            Texas .............................................................        3,286,505             367,954              194,944            11.2                  5.9       602,239,776,419        418,772,404,728         183,467,371,691            70
                                            Utah ..............................................................          472,867              98,093               30,339            20.7                  6.4       114,775,697,922         84,499,611,037          30,276,086,885            74
                                            Vermont .........................................................                 NA                  NA                   NA            NA                    NA                     NA                     NA                      NA            NA
                                            Virginia .........................................................         1,252,705             276,910               73,763            22.1                  5.9       419,006,811,369        295,429,338,477         123,577,472,892            71
                                            Washington ...................................................             1,407,416             209,577               75,920            14.9                  5.4       441,789,933,181        292,406,352,738         149,383,580,443            66
                                            Washington, DC ............................................                  100,340              15,240                4,513            15.2                  4.5        49,085,895,573         28,782,522,751          20,303,372,822            59
                                            West Virginia ................................................                    NA                  NA                   NA            NA                    NA                     NA                     NA                      NA            NA
                                            Wisconsin ......................................................             619,792              81,267               30,026            13.1                  4.8       120,246,415,775         80,769,544,053          39,476,871,722            67
                                            Wyoming ........................................................                  NA                  NA                   NA            NA                    NA                     NA                     NA                      NA            NA
                                                    Nation ..................................................        47,871,838          10,780,236             2,376,159            22.5                  5.0    12,711,358,863,378      8,850,515,659,256        3,860,843,204,122            70
                                                * This data only includes properties with a mortgage. Non-mortgaged properties are by definition not included.
                                                ** Defined as properties within 5% of being in a negative equity position.
                                                Source: CoreLogic. The data provided is for use only by the primary recipient or the primary recipient’s publication. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by
                                            the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a real estate data and ana-
                                            lytics company. For questions, analysis or interpretation of the data contact Lori Guyton at lguyton@cvic.com or Bill Campbell at bill@campbelllewis.com. Data provided may not be modified without the prior written permission of
                                            CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.


                                              Ms. JACKSON LEE of Texas. Mr.                                                                    3 days.’’ These are the faces of individ-                                  make FHA work better if that is the
                                            Chairman, I move to strike the last                                                                uals who probably would have fared                                         case.
                                            word.                                                                                              better under FHA.                                                            But the nonsensical plan of elimi-
                                              The CHAIR. The gentlewoman from                                                                    At the same time, a law enforcement,                                     nating it, not helping the underwater
                                            Texas is recognized for 5 minutes.                                                                 a police officer came to me and said                                       mortgagees, the individuals who have
                                              Ms. JACKSON LEE of Texas. I am                                                                   the very same thing, naming an insti-                                      these mortgages, with homes that are
                                            very    sorry    that    Congresswoman                                                             tution that I had never heard of, had no                                   distressed, with mortgages that are
                                            MALONEY’s amendment was subject to                                                                 national standing, some fly-by-night.                                      worth more than the homes—we know
                                            a point of order. I would like to simply                                                           Here is a law enforcement officer, a                                       there are many communities like this,
                                            add that you need to put faces on what                                                             local police officer putting his life on                                   and my colleague mentioned some, but
                                            this legislation is doing. It is a simple                                                          the line every day, and he needed to                                       let me cite three States again because
                                            act. It guts and eliminates all remain-                                                            sell his home. He had managed to find                                      it’s so enormous, and we have heard so
                                            ing funding. It does say that if you are                                                                                                                                      much from them: Florida, 2 million;
                                                                                                                                               a buyer. He had communicated that to
                                            in the midst of the program you might                                                                                                                                         California, 2 million; Nevada, 390,000.
                                                                                                                                               the bank. But lo and behold, the lowlife
                                            continue.                                                                                                                                                                     They are still in distress.
                                              But everyone knows how solid FHA                                                                 thing to do was what this financial in-
                                                                                                                                                                                                                            Everyone knows that the housing
                                            is. Whenever you hear FHA, you know                                                                stitution did. And I would call it not a
                                                                                                                                                                                                                          market has a lot to do with this econ-
                                            that there is a framework that really                                                              bank, but probably a mortgage entity.                                      omy. And even without the help of my
                                            provides for protection for the Federal                                                            They took the house right from under-                                      good friends on the other side of the
                                            Government and a fiscally responsible                                                              neath a man that goes out every day                                        aisle, we still saw the unemployment
                                            program that provides the Federal                                                                  and projects himself into the commu-                                       go down and 192,000 jobs created. But I
                                            Government with protection for those                                                               nity and could lay his life on the line.                                   can tell you that this does nothing to
                                            who are able to utilize it.                                                                          I am against H.R. 830 and H.R. 836. It                                   create jobs. It simply puts Americans
                                              But even traveling through airports,                                                             doesn’t make sense when we’ve got                                          out on the street. It devastates fami-
                                            Mr. Chairman, I had a man with a fam-                                                              hundreds of thousands of individuals                                       lies. And who knows, with the lack of
                                            ily who indicated that in the midst of                                                             who are in need of this program. I will                                    sales of homes and remodification or
                                            the holiday season, even though he had                                                             venture to say that if a program needs                                     modification of these, it puts people
                                            been told by the banking institution                                                               fixing, have we ever heard of fix it,                                      out of work, not in work.
                                            that his mortgage was intact, they                                                                 don’t end it? Mend it, don’t end it? Of                                      So I argue vigorously, a little too
tjames on DSKG8SOYB1PROD with HOUSE




                                            would allow him to continue to pay, he                                                             course it is always important to do due                                    late on the gentlelady’s amendment,
                                            was keeping up but having difficulty                                                               diligence and have oversight over these                                    but I want to thank her for her astute-
                                            looking for modification, a few days                                                               programs. But I would think that the                                       ness, carefully defining what impact
                                            into the new year, January 6, he was                                                               Financial Services Committee, under                                        this bill would have. And it’s unfortu-
                                            foreclosed on, and a few days later, or                                                            our past chairman and now the ranking                                      nate that the good work of FHA that
                                            at least on that day foreclosed with a                                                             member, working with the chairman                                          requires documentation, a current job,
                                            sign or a notice on his door, ‘‘Vacate in                                                          now, could come up with the genius to                                      a decent salary, all that is needed is



                                      VerDate Mar 15 2010                      04:42 Mar 11, 2011                   Jkt 099060      PO 00000           Frm 00021      Fmt 7634      Sfmt 0634     E:\CR\FM\A10MR7.037              H10MRPT1
                                            H1690                                             CONGRESSIONAL RECORD — HOUSE                                                           March 10, 2011
                                            now thrown to the wolves with no                        has increased by 24 percent. The rate of               from the great State of Pennsylvania
                                            other plan. So we go home, and con-                     growth is simply unsustainable.                        that there are over 132,000 homes that
                                            stituents will ask us about modifica-                     Despite the record pace of new spend-                are underwater now that could benefit
                                            tion or the viability of FHA, which has                 ing over the last 2 years, that spending               from this program, and urge my col-
                                            been in place for a long period of time.                continues today. Just this week, Mr.                   leagues to support the program.
                                            All we have to do is give them our                      Chairman, we learned that the Federal                    The Acting CHAIR. The question is
                                            empty hands and our blank face, say-                    deficit for the month of February 2011                 on the amendment offered by the gen-
                                            ing obviously greater minds than you,                   was the highest ever, and exceeded the                 tleman     from   Pennsylvania    (Mr.
                                            who knew this was a good program, de-                   deficit for the entire fiscal year 2007,               FITZPATRICK).
                                            cided to eliminate it with no substitute                $233 billion, Mr. Chairman, the biggest                  The amendment was agreed to.
                                            in place.                                               monthly deficit in the history of our                                   b 1400
                                              So Mr. Chairman, let me conclude by                   country.
                                                                                                                                                             The Acting CHAIR. The Clerk will
                                            simply saying to the hundreds of thou-                    Over the past decade, we have seen
                                                                                                                                                           designate section 3.
                                            sands of borrowers, have faith, because                 the excesses and unsustainable growth
                                                                                                                                                             The text of section 3 is as follows:
                                            this is only the first step. We know this               in sectors of our economy that can
                                                                                                                                                           SEC. 3. TERMINATION OF FHA REFINANCE PRO-
                                            is wrongheaded, the wrong direction.                    have disastrous effects across the en-                            GRAM.
                                            Thank goodness for the Founding Fa-                     tire economy. Unless we take dramatic                    (a) TERMINATION OF MORTGAGEE LETTER.—
                                            thers that gave us the House and the                    action now, the tax burden placed on                   The Mortgagee Letter referred to in section 2
                                            Senate and a President. I can be as-                    small businesses and families in my                    shall be void and have no effect and the Sec-
                                            sured that this legislation, I hope, is                 own Bucks County and across the Na-                    retary of Housing and Urban Development may
                                            destined for a route of no return.                      tion will outpace our ability to pay,                  not issue any regulation, order, notice, or mort-
                                                                                                    killing jobs and straining family budg-                gagee letter based on or substantially similar to
                                                     ANNOUNCEMENT BY THE CHAIR
                                                                                                                                                           such Mortgagee Letter.
                                              The CHAIR. The Chair would remind                     ets.                                                      (b) TREATMENT OF REMAINING FUNDS.—Not-
                                            the gentlewoman to direct her com-                        Just as troubling is the fact that the               withstanding subsection (a) of this section, any
                                            ments to the Chair, and not the view-                   money our government is using to feed                  amounts made available for use under the Pro-
                                            ing public.                                             today’s spending is being borrowed                     gram referred to in section 2 of this Act and ex-
                                              The Clerk will designate section 2.                   from future generations, much of it                    pended before the date of the enactment of this
                                              The text of section 2 is as follows:                  borrowed from foreign Nations. The                     Act shall continue to be governed by the Mort-
                                                                                                    sheer amount of cash owed to foreign                   gagee Letter specified in subsection (a) of this
                                            SEC. 2. RESCISSION OF FUNDING FOR FHA REFI-                                                                    section, and any other provisions of law, regula-
                                                        NANCE PROGRAM.                              powers led the chairman of the Joint
                                                                                                                                                           tions, orders, and notices, applicable to such
                                              Effective on the date of the enactment of this        Chiefs of Staff, Admiral Michael
                                                                                                                                                           amounts, as in effect immediately before such
                                            Act, there are rescinded and permanently can-           Mullen, last year to declare the deficit               date of enactment.
                                            celed all unexpended balances remaining avail-          as the number one security threat fac-                    (c) TERMINATION.—After the enactment of this
                                            able as of such date of enactment of the                ing our Nation. Reduce the debt.                       Act, the Secretary of Housing and Urban Devel-
                                            amounts made available under title I of the               I ask my colleagues to support the                   opment may not newly insure any mortgage
                                            Emergency Economic Stabilization Act (Public            amendment, support the underlying                      under the FHA Refinance Program referred to
                                            Law 110–343; 12 U.S.C. 5211 et seq.) that have                                                                 in section 2 of this Act except pursuant to a
                                                                                                    bill.
                                            been allocated for use under the FHA Refinance                                                                 commitment to insure made before such enact-
                                            Program (pursuant to Mortgagee Letter 2010–23
                                                                                                      I yield back the balance of my time.
                                                                                                                                                           ment, and upon the completion of all activities
                                            of the Secretary of Housing and Urban Develop-            Mr. FRANK of Massachusetts. Mr.
                                                                                                                                                           with respect to such commitments under the pro-
                                            ment) of the Making Home Affordable initiative          Chairman, I move to strike the last                    visions of law, regulations, orders, notices, and
                                            of the Secretary of the Treasury.                       word.                                                  mortgagee letters referred to in subsection (b) of
                                                   AMENDMENT NO. 11 OFFERED BY MR.                    The CHAIR. The gentleman from                        this section, the Secretary of Housing and
                                                               FITZPATRICK                          Massachusetts is recognized for 5 min-                 Urban Development shall terminate the FHA
                                              Mr. FITZPATRICK. Mr. Chairman, I                      utes.                                                  Refinance Program referred to in section 2.
                                                                                                      Mr. FRANK of Massachusetts. First,                      (d) STUDY OF USE OF PROGRAM BY MEMBERS
                                            have an amendment at the desk made                                                                             OF THE ARMED FORCES, VETERANS, AND GOLD
                                            in order under the rule.                                I would repeat that I am glad to hear
                                                                                                                                                           STAR RECIPIENTS.—
                                              The CHAIR. The Clerk will designate                   the support for Admiral Mullen—ear-                       (1) STUDY.—The Secretary of Housing and
                                            the amendment.                                          lier we heard of Secretary Gates—in                    Urban Development shall conduct a study to de-
                                              The text of the amendment is as fol-                  their warning about the deficit. I just                termine the extent of usage of the FHA Refi-
                                            lows:                                                   wish that all of those who were accept-                nance Program referred to in section 2 by, and
                                              Page 5, line 12, after the period insert the          ing their warning on the deficit would                 the impact of such program on, covered home-
                                            following: ‘‘All such unexpended balances so            refrain from forcing money on them                     owners.
                                                                                                                                                              (2) REPORT.—Not later than the expiration of
                                            rescinded and permanently canceled shall be             that they don’t want. We have people
                                                                                                                                                           the 90-day period beginning on the date of the
                                            retained in the General Fund of the Treasury            citing the military leadership and then                enactment of this Act, the Secretary shall sub-
                                            for reducing the debt of the Federal Govern-            voting for weapons systems, swelling                   mit to the Congress a report setting forth the re-
                                            ment.’’.                                                an already swollen military budget,                    sults of the study under paragraph (1) and iden-
                                              The CHAIR. The gentleman from                         that they don’t want.                                  tifying best practices, with respect to covered
                                            Pennsylvania is recognized for 5 min-                     As to this amendment, I am tempted                   homeowners, that could be applied to the FHA
                                            utes in support of his amendment.                       to come to the defense of the drafters                 Refinance Program.
                                              Mr. FITZPATRICK. Mr. Chairman, I                      of the bill, because if you read the bill,                (3) COVERED HOMEOWNER.—For purposes of
                                            want to thank my colleague from Illi-                                                                          this subsection, the term ‘‘covered homeowner’’
                                                                                                    the bill purports to do what the amend-
                                                                                                                                                           means a homeowner who is—
                                            nois (Mr. DOLD) for introducing this                    ment purports to do. Apparently the                       (A) a member of the Armed Forces of the
                                            legislation to end a failed Federal pro-                author of the amendment didn’t think                   United States on active duty or the spouse or
                                            gram, the FHA Refinance Program.                        the bill did a good enough job, or some-               parent of such a member;
                                            This amendment ensures that the sav-                    body thought the author of the amend-                     (B) a veteran, as such term is defined in sec-
                                            ings realized from ending this program                  ment, being a nice fellow, ought to get                tion 101 of title 38, United States Code; or
                                            go directly to debt reduction.                                                                                    (C) eligible to receive a Gold Star lapel pin
                                                                                                    in on the credit. So this is an amend-                 under section 1126 of title 10, United States
                                              Last month, Mr. Chairman, this                        ment that is either editorial refine-                  Code, as a widow, parent, or next of kin of a
                                            Chamber began a process of examining                    ment or political redundancy. In either                member of the Armed Forces person who died in
                                            the Federal budget line by line, asking                 case, it does not have much effect; so I               a manner described in subsection (a) of such
                                            tough questions and making tough de-                    urge the Members to adopt it.                          section.
tjames on DSKG8SOYB1PROD with HOUSE




                                            cisions on Federal spending. While our                    Mrs. MALONEY. Madam Chairman, I                          AMENDMENT NO. 3 OFFERED BY MR. LYNCH
                                            work was substantial, it is also con-                   move to strike the last word.                            Mr. LYNCH. Madam Chair, I have an
                                            tinuing. In order to encourage eco-                       The Acting CHAIR (Mrs. MILLER of                     amendment at the desk.
                                            nomic growth and job creation, the                      Michigan). The gentlewoman from New                      The Acting CHAIR. The Clerk will
                                            Federal debt is and must remain public                  York is recognized for 5 minutes.                      designate the amendment.
                                            enemy number one. Over the past 2                         Mrs. MALONEY. I would just like to                     The text of the amendment is as fol-
                                            years, Federal discretionary spending                   point out to Congressman FITZPATRICK                   lows:



                                      VerDate Mar 15 2010   04:08 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00022   Fmt 7634   Sfmt 0634   E:\CR\FM\K10MR7.044   H10MRPT1
                                            March 10, 2011                                    CONGRESSIONAL RECORD — HOUSE                                                                 H1691
                                               Page 5, strike lines 14 through 19.                    That creates a problem. That stops                   questionable ways. I think that the
                                               Page 5, line 20, strike ‘‘(b)’’ and insert           the FHA from doing a lot of the other                  program is similar in scope to the
                                            ‘‘(a)’’.
                                               Page 5, lines 20 and 21, strike ‘‘Notwith-           work that both sides agree needs to be                 failed HOPE for Homeowners program
                                            standing subsection (a) of this section, any’’          done. We are talking about voluntary                   established under FHA in 2008, and
                                            and insert ‘‘Any’’.                                     agreements where the bank and the                      even that program has helped fewer
                                               Page 5, line 25, strike ‘‘specified in sub-          servicer and the homeowner agree. Ba-                  than 200 borrowers since its inception.
                                            section (a) of this section’’ and insert ‘‘speci-       sically, that would be stopped by this                   So we are concerned that the method
                                            fied in section 2’’.                                    legislation. So I’m not trying to undo                 of funding for this program exposes
                                               Page 6, line 3, strike ‘‘(c)’’ and insert ‘‘(b)’’.                                                          taxpayers to higher levels of TARP
                                               Page 6, lines 10 and 11, strike ‘‘subsection         the targeted work that you’re trying to
                                            (b)’’ and insert ‘‘subsection (a)’’.                    do. I’m just trying to let the FHA do                  money. I don’t think that it affects
                                               Page 6, line 14, strike ‘‘(d)’’ and insert           its job in general.                                    FHA other than that this program is
                                            ‘‘(c)’’.                                                  I also want to remind the gentle-                    terminated. This program, along with
                                              The Acting CHAIR. The gentleman                       woman from Illinois that the FHA, by                   its companion programs and the failed
                                            from Massachusetts is recognized for 5                  itself, cannot recreate the finance pro-               HAMP program, should be terminated,
                                            minutes.                                                gram through a mortgagee letter. It                    and all unobligated funds associated
                                              Mr. LYNCH. Thank you, Madam                           can only do so if it is legislation that               with the program should instead be
                                            Chair.                                                  is clearly underlying its action. All the              used to pay down the Nation’s
                                              I want to, first of all, clarify what                 mortgagee letters must go through de-                  unsustainable debt. I would oppose the
                                            this bill is intending to do. The goal of               partmental clearance and must be                       amendment.
                                            the bill by my colleagues is to end the                 viewed by OMB before they become of-                     I yield back the balance of my time.
                                            FHA Refinance Program. While I do                       ficial guidance. So I am asking that                     Mr.    FRANK       of   Massachusetts.
                                            support voluntary workouts—and I                        this amendment be accepted to clarify                  Madam Chair, I move to strike the last
                                            think that’s the best way to approach                   the action of the bill, itself.                        word.
                                            the problem—I want to point out that                                                                             The Acting CHAIR. The gentleman is
                                                                                                      I yield back the balance of my time.
                                            the bill as it is written does not allow                  Mrs. BIGGERT. Madam Chairman, I                      recognized for 5 minutes.
                                                                                                                                                             Mr.    FRANK       of   Massachusetts.
                                            that to be accomplished by the FHA.                     rise in opposition to the amendment.
                                                                                                                                                           Madam Chair, I regret the fact that my
                                            Not only does the bill eliminate the                      The Acting CHAIR. The gentlewoman
                                                                                                                                                           colleague from Massachusetts, who is a
                                            targeted programs that have been iden-                  from Illinois is recognized for 5 min-
                                                                                                                                                           good lawyer and a careful student of
                                            tified, but it also, in its breadth, elimi-             utes.
                                                                                                      Mrs. BIGGERT. This amendment                         what we do, has drafted a very specific
                                            nates the possibility of any voluntary                                                                         amendment aimed at a particular
                                            agreements outside this program.                        came up in committee and failed dur-
                                                                                                                                                           point. He has been answered with a lot
                                            That’s what my amendment would                          ing our committee markup by a vote of
                                                                                                                                                           of general rhetoric, and I don’t think
                                            seek to address.                                        33–22. The amendment removes all ref-
                                                                                                                                                           his point was understood. The gentle-
                                              I do know that the CQ House Action                    erences to the mortgagee letter issued
                                                                                                                                                           woman simply repeated general rhet-
                                            Report indicated that I was amending                    by HUD concerning the FHA Refinance
                                                                                                                                                           oric about the bill.
                                            section 2. However, I want to make                      Program, and I think that this an-                       He is not trying by the back door to
                                            sure that they understand that the lan-                 nouncement was the defining document                   reestablish this program. He has talked
                                            guage my amendment addresses is sec-                    for the program and provided guidance                  to thoughtful people, and is worried
                                            tion 3: Termination of FHA Refinance                    to lenders on the FHA Refinance Pro-                   about an overreach. I think the only
                                            Program.                                                gram.                                                  thing we’re seeing now is pride of au-
                                              Basically, to understand it, what this                  I think our concern is that the                      thorship by whoever drafted this bill
                                            amendment would do is: The FHA fa-                      amendment leaves the door open for                     for them. The gentlewoman from Illi-
                                            cilitates mortgage workouts and other                   the Treasury and for HUD to at a later                 nois is, as I said, using a lot of general
                                            actions under its purview through                       date create another substantially simi-                rhetoric, which is totally unresponsive
                                            mortgagee letters. These are written                    lar program to the FHA Refinance Pro-                  to the very specific point my friend
                                            guidances to mortgagees, lenders,                       gram, again, without the express con-                  from Massachusetts made.
                                            HUD-approved counselors and apprais-                    sent of Congress.                                        With that, in the hope that if he says
                                            ers—essentially, anyone who is ac-                        As the sponsor of the bill mentioned,                it again he might get them to pay at-
                                            tively providing services on behalf of                  this program was never authorized by                   tention to the specifics, I yield to my
                                            or with the permission of HUD. Similar                  Congress. The funding came from the                    friend, the gentleman from Massachu-
                                            guidance is done for other HUD pro-                     TARP moneys that were set aside for                    setts (Mr. LYNCH).
                                            grams.                                                  the HAMP program, and the mortgagee                      Mr. LYNCH. Madam Chair, look, I
                                              Administrative law dictates that the                  letter was effectively the authorizing                 will concede that the gentlelady from
                                            agencies can issue administrative guid-                 document for the program. If this were                 Illinois has raised a lot of good points.
                                            ance that interprets statutes and regu-                 to be in, there would be no nullifica-                 Unfortunately, none of them are rel-
                                            lations that we adopt, and it requires                  tion of the program; it wouldn’t be ter-               evant to my amendment. If you look at
                                            public notice and comment, and must                     minated. This mortgagee letter speaks                  section 2, which is what you just
                                            be based on an authorizing statute. The                 directly to this program, and I don’t                  talked about, that remains intact.
                                            FHA’s guidance for lenders comes in                     think that it affects the other parts of               That remains intact.
                                            the form of handbooks and these mort-                   the FHA. It really just voids the letter,                                f
                                            gagee letters, which essentially provide                in doing so, to end the program.
                                            periodic advice and clarification while                   We don’t need to further burden the                                    b 1410
                                            we are trying to do these voluntary                     FHA with this program. An FHA pro-                       Basically, what you have done on the
                                            agreements. Last year, the FHA issued                   gram right now is currently operating                  bill is it says: effective on the date of
                                            43 separate versions of this mortgagee                  below its congressionally mandated 2                   the act there are rescinded and perma-
                                            letter. So far this year, it has issued                 percent capital reserve ratio, and this                nently canceled all unexpended bal-
                                            about 14.                                               program has the potential to further                   ances remaining available as of such
                                              My amendment would strike the text                    expose taxpayers to FHA losses. Even                   date of enactment of the amounts
                                            that I believe and that the FHA be-                     the administration has expressed con-                  made available under title I of the
                                            lieves would interfere with the rest of                 cerns over the new program loan per-                   Emergency Economic Stabilization
                                            the work that the FHA is doing in its                   formance. During testimony delivered                   Act. So you have cut out the top and
tjames on DSKG8SOYB1PROD with HOUSE




                                            operation. These are not areas targeted                 to the Financial Services Committee,                   you say it can’t be used for mortgages,
                                            by the bill by the gentlewoman from Il-                 the FHA Commissioner testified ‘‘these                 and I left that language alone.
                                            linois. The bill provides that anything                 loans may perform worse than refi-                       But then in that section you identify,
                                            substantially similar to what they                      nanced loans that were not previously                  specifically, mortgage letter 2010–23.
                                            have prohibited in section 2, which is a                under water.’’                                         And you say, nothing can be used for
                                            mortgagee letter titled 2010–23, would                    This is another example of the ad-                   that. I am not trying to turn over that
                                            also be prohibited.                                     ministration’s using TARP dollars in                   apple cart.



                                      VerDate Mar 15 2010   04:08 Mar 11, 2011   Jkt 099060   PO 00000   Frm 00023   Fmt 7634   Sfmt 0634   E:\CR\FM\A10MR7.003   H10MRPT1

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:12/19/2011
language:
pages:14