[Congressional Record Volume 143, Number 123 (Tuesday, September 16, 1997)]
[House]
[Pages H7302-H7309]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 HOUSING PROGRAMS EXTENSION ACT OF 1997

  Mr. LAZIO of New York. Mr. Speaker, I move to suspend the rules and 
pass the Senate bill (S. 562) to amend section 255 of the National 
Housing Act to prevent the funding of unnecessary or excessive costs 
for obtaining a home equity conversion mortgage, as amended.
  The Clerk read as follows:

                                 S. 562

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Housing Programs Extension 
     Act of 1997''.
             TITLE I--SENIOR CITIZEN HOME EQUITY PROTECTION

     SECTION 101. SHORT TITLE.

       This title may be cited as the ``Senior Citizen Home Equity 
     Protection Act''.

     SEC. 102. DISCLOSURE REQUIREMENTS; PROHIBITION OF FUNDING OF 
                   UNNECESSARY OR EXCESSIVE COSTS.

       Section 255(d) of the National Housing Act (12 U.S.C. 
     1715z-20(d)) is amended--

[[Page H7303]]

       (1) in paragraph (2)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (C) by inserting after subparagraph (B) the following:
       ``(C) has received full disclosure of all costs to the 
     mortgagor for obtaining the mortgage, including any costs of 
     estate planning, financial advice, or other related services; 
     and'';
       (2) in paragraph (9)(F), by striking ``and'';
       (3) in paragraph (10), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(11) have been made with such restrictions as the 
     Secretary determines to be appropriate to ensure that the 
     mortgagor does not fund any unnecessary or excessive costs 
     for obtaining the mortgage, including any costs of estate 
     planning, financial advice, or other related services.''.

     SEC. 103. IMPLEMENTATION.

       (a) Notice.--The Secretary of Housing and Urban Development 
     shall, by interim notice, implement the amendments made by 
     section 102 in an expeditious manner, as determined by the 
     Secretary. Such notice shall not be effective after the date 
     of the effectiveness of the final regulations issued under 
     subsection (b).
       (b) Regulations.--The Secretary shall, not later than the 
     expiration of the 90-day period beginning on the date of the 
     enactment of this Act, issue final regulations to implement 
     the amendments made by section 102. Such regulations shall be 
     issued only after notice and opportunity for public comment 
     pursuant to the provisions of section 553 of title 5, United 
     States Code (notwithstanding subsections (a)(2) and (b)(B) of 
     such section).
 TITLE II--TEMPORARY EXTENSION OF PUBLIC HOUSING AND SECTION 8 RENTAL 
                         ASSISTANCE PROVISIONS

     SEC. 201. PUBLIC HOUSING CEILING RENTS AND INCOME ADJUSTMENTS 
                   AND PREFERENCES FOR ASSISTED HOUSING.

       Section 402(f) of The Balanced Budget Downpayment Act, I 
     (42 U.S.C. 1437aa note) is amended by striking ``and 1997'' 
     and inserting ``, 1997, and 1998''.

     SEC. 202. PUBLIC HOUSING DEMOLITION AND DISPOSITION.

       Section 1002(d) of the Emergency Supplemental 
     Appropriations for Additional Disaster Assistance, for Anti-
     terrorism Initiatives, for Assistance in the Recovery from 
     the Tragedy that Occurred at Oklahoma City, and Rescissions 
     Act, 1995 (42 U.S.C. 1437c note) is amended by striking 
     ``September 30, 1997'' and inserting ``September 30, 1998''.

     SEC. 203. PUBLIC HOUSING FUNDING FLEXIBILITY AND MIXED-
                   FINANCE DEVELOPMENTS.

       Section 201(a)(2) of the Departments of Veterans Affairs 
     and Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1996 (as contained in section 101(e) of 
     the Omnibus Consolidated Rescissions and Appropriations Act 
     of 1996 (Public Law 104-134)) (42 U.S.C. 1437l note) is 
     amended by striking ``fiscal year 1997'' and inserting 
     ``fiscal year 1998''.

     SEC. 204. MINIMUM RENTS.

       Section 402(a) of The Balanced Budget Downpayment Act, I 
     (Public Law 104-99; 110 Stat. 40) is amended in the matter 
     preceding paragraph (1) by striking ``fiscal year 1997'' and 
     inserting ``fiscal years 1997 and 1998''.

     SEC. 205. PROVISIONS RELATING TO SECTION 8 RENTAL ASSISTANCE 
                   PROGRAM.

       (a) Take-One-Take-All, Notice Requirements, and Endless 
     Lease Provisions.--Section 203(d) of the Departments of 
     Veterans Affairs and Housing and Urban Development, and 
     Independent Agencies Appropriations Act, 1996 (as contained 
     in section 101(e) of the Omnibus Consolidated Rescissions and 
     Appropriations Act of 1996 (Public Law 104-134)) (42 U.S.C. 
     1437f note) is amended by striking ``and 1997'' and inserting 
     ``, 1997, and 1998''.
       (b) Fair Market Rentals.--The first sentence of section 
     403(a) of The Balanced Budget Downpayment Act, I (Public Law 
     104-99; 110 Stat. 43) is amended by striking ``fiscal year 
     1997'' and inserting ``fiscal years 1997 and 1998''.
  TITLE III--REAUTHORIZATION OF FEDERALLY ASSISTED MULTIFAMILY RENTAL 
                           HOUSING PROVISIONS

     SEC. 301. SECTION 8 PROJECT-BASED ASSISTANCE CONTRACT RENEWAL 
                   AUTHORITY.

       Section 211 of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997 (42 U.S.C. 1437f note) is amended--
       (1) in subsection (a)(1), by inserting ``or 1998'' before 
     the semicolon at the end; and
       (2) in subsection (b)(4)(A), by inserting after ``fiscal 
     year 1997'' each place it appears the following: ``or 1998''.

     SEC. 302. MORTGAGE RESTRUCTURING DEMONSTRATION FOR FHA-
                   INSURED MULTIFAMILY HOUSING.

       Section 212 of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997 (42 U.S.C. 1437f note) is amended--
       (1) in subsection (a)(3)(B), by inserting ``or 1998'' 
     before the semicolon at the end;
       (2) in subsection (h)(1)(B), by striking ``fiscal year 
     1997'' and inserting ``fiscal years 1997 and 1998'';
       (3) in subsection (h)(1)(F)(ii), by striking ``fiscal year 
     1997'' and inserting: ``fiscal years 1997 and 1998''; and
       (4) in subsection (k), by striking ``50,000 units'' and 
     inserting ``100,000 units''.

     SEC. 303. MULTIFAMILY HOUSING FINANCE PILOT PROGRAMS.

       Section 542 of the Housing and Community Development Act of 
     1992 (12 U.S.C. 1707 note) is amended--
       (1) in subsection (b)(5), by inserting before the period at 
     the end of the first sentence the following: ``, and not more 
     than an additional 15,000 units during fiscal year 1998''; 
     and
       (2) in the first sentence of subsection (c)(4)--
       (A) by striking ``and'' and inserting a comma; and
       (B) by inserting before the period at the end the 
     following: ``, and not more than an additional 15,000 units 
     during fiscal year 1998''.

     SEC. 304. HUD DISPOSITION OF MULTIFAMILY HOUSING.

       Section 204 of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997 (12 U.S.C. 1715z-11a) is amended by 
     inserting after ``owned by the Secretary'' the following: ``, 
     including the provision of grants and loans from the General 
     Insurance Fund for the necessary costs of rehabilitation or 
     demolition,''.

     SEC. 305. MULTIFAMILY MORTGAGE AUCTIONS.

       Section 221(g)(4)(C) of the National Housing Act (12 U.S.C. 
     1715l(g)(4)(C)) is amended--
       (1) in the first sentence of clause (viii), by striking 
     ``September 30, 1996'' and inserting ``December 31, 2005''; 
     and
       (2) by adding at the end the following new clauses:
       ``(ix) Subject to the limitation in clause (x), the costs 
     of any multifamily auctions under this subparagraph occurring 
     during any fiscal year shall be paid from amounts in the 
     General Insurance Fund established under section 519.
       ``(x) This authority of the Secretary to conduct 
     multifamily auctions under this subparagraph shall be 
     effective for any fiscal year only to the extent or in such 
     amounts that amounts in the General Insurance Fund are or 
     have been approved in appropriation Acts for costs of such 
     auctions occurring during such fiscal year.''.

     SEC. 306. INTEREST REDUCTION PAYMENTS IN CONNECTION WITH 
                   SALES OF SECTION 236 MORTGAGES HELD BY HUD.

       Section 236 of the National Housing Act (12 U.S.C. 1715z-1) 
     is amended--
       (1) in the first sentence of subsection (b), by inserting 
     before the colon at the end of the first proviso the 
     following: ``and when the mortgage is assigned or otherwise 
     transferred to a subsequent holder or purchaser (including 
     any successors and assignees)''; and
       (2) in subsection (c)--
       (A) by inserting ``(1)'' after the subsection designation; 
     and
       (B) by adding at the end the following new paragraphs:
       ``(2)(A) The Secretary may continue to make interest 
     reduction payments to the holder or purchaser (including any 
     successors and assignees) of a mortgage formerly held by the 
     Secretary upon such terms and conditions as the Secretary may 
     determine. In exercising the authority under the preceding 
     sentence, upon cancellation of any contract for such interest 
     reduction payments as a result of foreclosure or transfer of 
     a deed in lieu of foreclosure, any amounts of budget 
     authority which would have been available for such contract, 
     absent cancellation, shall remain available for the project 
     for the balance of the term of the original mortgage upon 
     such terms and conditions as the Secretary may determine.
       ``(B) The Secretary may exercise the authority to make 
     payments under this paragraph (i) only with respect to 
     mortgage loans under this section which, at the time of the 
     Secretary's assignment or other transfer, have a total amount 
     of unpaid principal obligation of not more than $92,000,000, 
     and (ii) only to the extent or in such amounts as are or have 
     been provided in advance in appropriation Acts.
       ``(3) Notwithstanding subsection (i)(2) or any other 
     provision of law, in connection with the sale of mortgages 
     held by the Secretary, the Secretary may establish 
     appropriate terms and conditions, based on section 42 of the 
     Internal Revenue Code of 1986 or another appropriate 
     standard, for determining eligibility for occupancy in the 
     project and rental charges.''.

     SEC. 307. ASSIGNMENT OF REGULATORY AGREEMENTS IN CONNECTION 
                   WITH SALES OF MORTGAGES HELD BY HUD.

       Section 203(k) of the Housing and Community Development 
     Amendments of 1978 (12 U.S.C. 1701z-11(k)) is amended by 
     adding at the end the following new paragraph:
       ``(7) Assignment of regulatory agreement in connection with 
     sale of mortgages.--Notwithstanding any other provision of 
     law, and upon such terms and conditions as the Secretary may 
     prescribe, the Secretary may, in connection with the sale of 
     mortgages held by the Secretary, provide for the assumption 
     of all rights and responsibilities under the regulatory 
     agreement executed by or for the benefit of the Secretary. 
     Such assumption shall further provide for the regulatory 
     agreement to be so assumed by any successor or assignee of 
     the initial assuming entity. Such regulatory agreement shall 
     continue to be binding upon the mortgagor and its successors 
     and assignees.''.

[[Page H7304]]

          TITLE IV--REAUTHORIZATION OF RURAL HOUSING PROGRAMS

     SEC. 401. HOUSING IN UNDERSERVED AREAS PROGRAM.

       The first sentence of section 509(f)(4)(A) of the Housing 
     Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended by striking 
     ``fiscal year 1997'' and inserting ``fiscal years 1997, 1998, 
     and 1999''.

     SEC. 402. HOUSING AND RELATED FACILITIES FOR ELDERLY PERSONS 
                   AND FAMILIES AND OTHER LOW-INCOME PERSONS AND 
                   FAMILIES.

       (a) Authority To Make Loans.--Section 515(b)(4) of the 
     Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by 
     striking ``September 30, 1997'' and inserting ``September 30, 
     1999''.
       (b) Set-Aside for Nonprofit Entities.--The first sentence 
     of section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 
     1485(w)(1)) is amended by striking ``fiscal year 1997'' and 
     inserting ``fiscal years 1997, 1998, and 1999''.

     SEC. 403. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN 
                   RURAL AREAS.

       Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) 
     is amended--
       (1) in subsection (q), by striking paragraph (2) and 
     inserting the following:
       ``(2) Annual limitation on amount of loan guarantee.--In 
     each fiscal year, the Secretary may enter into commitments to 
     guarantee loans under this section only to the extent that 
     the costs of the guarantees entered into in such fiscal year 
     do not exceed such amount as may be provided in appropriation 
     Acts for such fiscal year.'';
       (2) by striking subsection (t) and inserting the following:
       ``(t) Authorization of Appropriations.--There are 
     authorized to be appropriated for each of fiscal years 1998 
     and 1999 for costs (as such term is defined in section 502 of 
     the Congressional Budget Act of 1974) of loan guarantees made 
     under this section such sums as may be necessary for such 
     fiscal year.''; and
       (3) in subsection (u), by striking ``1996'' and inserting 
     ``1999''.
      TITLE V--REAUTHORIZATION OF NATIONAL FLOOD INSURANCE PROGRAM

     SECTION 501. PROGRAM EXPIRATION.

       Section 1319 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4026) is amended by striking ``September 30, 
     1997'' and inserting ``September 30, 1999''.

     SEC. 502. BORROWING AUTHORITY.

       Section 1309(a)(2) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4016(a)(2)) is amended by striking 
     ``September 30, 1997'' and inserting ``September 30, 1999''.

     SEC. 503. EMERGENCY IMPLEMENTATION OF PROGRAM.

       Section 1336(a) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4056(a)) is amended by striking ``September 30, 
     1996'' and inserting ``September 30, 1999''.

     SEC. 504. AUTHORIZATION OF APPROPRIATIONS FOR STUDIES.

       Subsection (c) of section 1376 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4127(c)) is amended to read 
     as follows:
       ``(c) For studies under this title, there are authorized to 
     be appropriated such sums as may be necessary for each of 
     fiscal years 1998 and 1999, which shall remain available 
     until expended.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York [Mr. Lazio] and the gentleman from Massachusetts [Mr. Kennedy] 
each will control 20 minutes.
  The Chair recognizes the gentleman from New York [Mr. Lazio].
  Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, S. 562, the Housing Programs Extension Act of 1997, will 
provide security and peace of mind for senior citizens seeking to 
obtain an FHA-insured reverse mortgage. In short, this legislation 
gives the Department of Housing and Urban Development authority to 
issue regulations protecting senior homeowners from being charged 
excessive or unnecessary fees in the reverse mortgage application 
process.
  I should say here, Mr. Speaker, the Department of Housing and Urban 
Development supports not just this provision, but, as I understand it, 
the entirety of this bill.
  According to a HUD investigation earlier this year, seniors applying 
for reverse mortgages were being charged up to 10 percent of the total 
loan amount for estate-planning services from third-party service 
providers. In some cases this amounted to as much as $10,000 for simply 
driving homeowners to the bank and sitting with the applicants during 
discussions with the lender.
  Mr. Speaker, seniors use these funds for assistance with medical 
expenses, critical home repairs, groceries and other everyday living 
expenses. Charging senior citizens $10,000 for services that are 
essentially free is truly an abomination.
  In response to these allegations, I, along with members of the 
minority, including the gentleman from Massachusetts [Mr. Kennedy], 
introduced H.R. 1297, the Senior Homeowner Reverse Mortgage Protection 
Act, earlier this year with the support of the administration. H.R. 
1297 was included in the manager's amendment to H.R. 2, which passed 
the House with strong bipartisan support last May.
  Mr. Speaker, last Congress we extended the FHA-insured reverse 
mortgage program until the year 2000. The program has helped make the 
American dream of home ownership a continued reality for more than 
20,000 seniors who might otherwise be forced to sell their homes 
because of the rising costs of living associated with aging.
  Reverse mortgages allow seniors who are house rich but cash poor to 
tap into the equity in their homes for much needed assistance with 
everyday living expenses. For many, the program provides seniors with 
the opportunity to remain in their own neighborhoods, close to family 
and friends instead of being forced to live in nursing homes.
  Mr. Speaker, it is profoundly disturbing that such a valuable tool 
for our Nation's most vulnerable population has been jeopardized by 
such practices. This legislation will prevent these activities and will 
ensure that the reverse mortgage proceeds will go toward sustaining the 
quality of life of seniors across America.
  Mr. Speaker, the committee amendment to S. 562 will also extend 
certain noncontroversial public housing reform measures for 12 months. 
The committee amendment originally extended these provisions for 6 
months, but at the request of the minority, the legislation will extend 
these measures for a full year.
  During this Congress and the last Congress, these public housing 
reform measures have been enacted annually through the appropriations 
process. These interim reforms are set to expire in only a few weeks, 
on September 30, 1997. A short-term extension measure from the 
authorizing committee, therefore, is necessary for the House and Senate 
to complete a conference and enact permanent public housing reform.
  Mr. Speaker, since the 103d Congress we have been working hard to 
systematically and systemically reform our Nation's public housing 
programs. In the last Congress both the House and Senate passed 
comprehensive public housing reform legislation. Unfortunately, we were 
unable to complete a conference on the two bills before recess. In the 
105th Congress, this Congress, the House passed comprehensive public 
housing reform last May by a vote of 293 to 132. Senate passage of 
comparable legislation is anticipated in the next few weeks. A 
conference is fully expected with a conference report to be completed 
early in the second session.
  Mr. Speaker, the legislation also extends the existing section 8 
multifamily housing demonstration program for 1 year to prevent any 
disruption to tenants or owners of section 8 developments while we 
continue to pursue a permanent solution to the problem of expiring 
section 8 contracts.
  I will say that even if we could come to an agreement tomorrow, Mr. 
Speaker, with the Senate on this provision, it would probably be at 
least 1 year to 18 months before regulations were in place. This demo 
extension is needed and is supported by the administration as well as 
the National Leased Housing Association and other stakeholders. I want 
to repeat it is supported by the administration and other stakeholders.
  Finally, the legislation includes a number of housekeeping measures, 
including a number of multifamily housing reforms at the request of the 
administration, a 2-year extension of rural housing programs and a 2-
year extension of the National Flood Insurance Program, both of which 
will expire at the end of this fiscal year unless we take action now.
  Mr. Speaker, these extensions are critical to avoid a destabilization 
of the marketplace and to ensure the continuity of service to needy 
Americans. In particular, in regard to the National Flood Insurance 
Program, if we fail to extend the program's borrowing authority, we 
risk being unable to serve devastated families that are affected by 
natural disasters. FEMA Director Witt indicated to me earlier this 
month, as a matter of fact only a couple of days ago when he called me 
at home, that without the extension of borrowing authority, FEMA would 
be forced to turn away families in the

[[Page H7305]]

event of a significant disaster. We do not want that result. Mr. 
Speaker, I urge all Members to support this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield myself such time 
as I may consume.
  Mr. Speaker, reluctantly I rise in opposition to S. 562 and urge my 
colleagues to vote against it. I was surprised to learn, although I was 
a few minutes late for the beginning of the opening statement of the 
gentleman from New York [Mr. Lazio], that he indicated that the 
administration supports this.
  The fact of the matter is I talked to Secretary Cuomo over the 
weekend. He indicated he was very strongly opposed, not to the 
provisions that pertain to the Senior Citizen Home Equity Protection 
Act, but he as well as the White House have all indicated to me that 
they are very much opposed to the addition of the extenders plus the 
mark-to-market provisions that are contained in this bill.
  I think it is important to recognize that while I do not believe the 
White House or that HUD or would we take much issue on the extenders on 
various provisions that both the gentleman from New York [Mr. Lazio] 
and I have talked about and agree in most of the provisions that we are 
talking about here, the real problem comes with the containment of the 
mark-to-market provisions.
  There are two major problems with the bill. First, I would like to 
point out to Members that we should not be deceived by the title, the 
Senior Citizen Home Equity Protection Act. I am an original cosponsor 
of that legislation in the House which would provide important 
protections against scam artists who bilk senior citizens by charging 
them excessive fees for reverse mortgage equity loans for services 
which HUD provides as a matter of course.
  The Senate has already passed the bill, and the right thing to do 
would be to take up the Senate bill without modifications or additions. 
If the majority party were doing so today, it would pass 
overwhelmingly, and we could have it on the President's desk this week 
for enactment into law.
  Instead the majority party is playing games, adding on provisions 
that the Senate will never take up, in effect delaying the final 
passage of this important consumer protection bill for senior citizens.
  Instead S. 562 has been modified to include many other provisions. 
While most of these are reasonable, we in the minority believe that one 
provision will undermine efforts to reach final agreement on critically 
needed mark-to-market legislation.
  This is an issue which we in the minority simply disagree with the 
majority party in the House. We Democrats strongly support the Senate 
bipartisan mark-to-market proposal which was included in both the 
Senate reconciliation and the VA-HUD appropriations bills. We Democrats 
want to include that bill in the VA-HUD conference report, but we are 
opposed by the same House Republicans who do not support the bill.
  In fact, the Senate bipartisan mark-to-market bill is essential to 
provide an orderly transition to market-based section 8 rental 
payments. This is necessary to preserve affordable housing and to 
protect low-income families and seniors from displacement.
  Also, the Congressional Budget Office has scored the Senate bill as 
saving an additional $500 million. Including this in the VA-HUD 
conference report would allow us to spend $500 million more on critical 
priority areas like education, health care and housing. But instead, 
today we are being called upon to reject the mark-to-market proposal 
and instead pass a continuation of the demonstration program. It is 
simply the wrong approach.
  Finally, I would like to respond to the claim that it is important to 
pass this bill to reassert the authority of the authorizing committee, 
the Committee on Banking and Financial Services. This is a curious 
claim indeed. First, I would like to point out that the Committee on 
Banking and Financial Services itself has not even considered the bill 
that we are voting on today. Second, I would like to point out that 
most of the provisions of the bill are not new authorizing legislation, 
but simply a continuation of existing policy or appropriations riders.
  Finally, with regard to the mark-to-market approach, we have been 
debating this issue in the Congress for years, but we have never held a 
committee markup. It is understandable why Senate Republicans and 
Democrats alike are frustrated with our lack of progress and have moved 
on their own. It is time to send a bill to the President.
  In conclusion, I would urge my colleagues to reject this bill. It 
will not speed up the final enactment of senior citizens' home equity 
protections, simply because the Senate will refuse to take up the 
language if it is included with these extenders and the mark-to-market 
legislation. All it will do is impede the progress of the critical 
mark-to-market approach. It is the wrong bill, the wrong process, and I 
urge a ``no'' vote.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LAZIO of New York. Mr. Speaker, I yield such time as he may 
consume to the gentleman from Iowa [Mr. Leach], the distinguished 
chairman of the Committee on Banking and Financial Services.
  Mr. LEACH. I thank the gentleman for yielding me this time.
  Mr. Speaker, let me say there are several aspects of this bill before 
us. One is an issue of sheer compassion, the whole precept of whether 
senior citizens should be preyed upon and whether profiteering should 
occur with regard to a very responsible Federal program which is 
applicable in a limited number of circumstances, the so-called reverse 
mortgage. The second relates to a series of issues of extenders that 
are part of this bill and what is perceived to be a delaying tactic on 
the minority side.
  I think it fair to ask the gentleman from Massachusetts, what 
extender does he object to? I say this because all of these provisions 
were dealt with in a bill that came out of the Committee on Banking and 
Financial Services called H.R. 2, or they are in current law. And so my 
concern is what precise extenders does the gentleman object to?
  Mr. KENNEDY of Massachusetts. Mr. Speaker, will the gentleman yield?
  Mr. LEACH. I yield to the gentleman from Massachusetts.
  Mr. KENNEDY of Massachusetts. For the sake of the record, I would 
just like to point out to the gentleman that neither title III, title 
IV nor title V were included in the legislation the gentleman is 
referring to, No. 1.
  No. 2, I do not really have a problem with a lot of the extenders. I 
tried to pass a message along to the office of the gentleman from New 
York [Mr. Lazio] saying that if he wanted to include the extenders but 
exclude the mark-to-market approach, that I would be happy to support 
this bill today.
  What we are trying to get at here is the gentleman knows because he 
was, I believe, at a meeting last week where he understands that 
Senator Mack simply is not going to allow this legislation to be taken 
up. Why do we not just mark up the mark-to-market legislation, separate 
that out and go ahead and pass these protections on for the senior 
citizens?

                              {time}  1400

  Mr. LEACH. Mr. Speaker, reclaiming my time, I would simply say the 
gentleman gave an opening introduction in which he objected to the 
extenders. So there is no misunderstanding, the minority has no 
objection to the extenders. They only object to the mark-to-market 
provisions. The mark-to-market approach, which is a fairly subtle thing 
in terms of the public perspective, is simply an extension of an 
ongoing program.
  Now, the question then becomes, what are we doing with the larger 
issue for which there are certain differences with the other body? The 
gentleman from New York [Mr. Lazio] has very thoughtfully introduced a 
very comprehensive bill. It is in the public record. We have modest 
differences with the other body on two large issues, both of which, 
however, are in the context of which there is 95 percent agreement on 
approach. It is the intent of the House side to be very forthcoming in 
negotiations with the Senate on these issues. What we are attempting to 
pass today is by no means intended to be delaying. It is intended to 
take care of extenders that must occur this

[[Page H7306]]

month, and also to take care of a very compassionate issue.
  So I would only say to the gentleman from Massachusetts [Mr. Kennedy] 
that we have some very minor concerns about a given Senate approach in 
the mark to market. We will negotiate with them very straightforwardly, 
very reasonably, with the intent of protecting the U.S. taxpayer and 
the public interest, and no other intent or any other motivation 
whatsoever.
  In so doing, we hope to come out with a better protective taxpayer 
approach than has simply been endorsed by the other side today. But 
there is nothing in this proposal that is designed to do anything 
except advance what must be done this month under law and to take care 
of an approach, if there is no agreement that can be reached with the 
Senate. But we have total desire to reach agreement with the Senate. 
The chairman of the subcommittee and the chairman of the full committee 
are very committed to resolving this issue in this Congress and if at 
all possible, in this session.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield myself 1 minute to 
respond to the statement by the chairman of the full committee, the 
gentleman from Iowa [Mr. Leach]. I would like to point out while he 
suggests that the mark to market issue is some minor issue that is not 
out there in the public purview, that does not mean that it is not by 
far and away the most important issue that we are talking about here. 
It is fully half of the housing programs of this country.
  What we are talking about is whether or not we are going to cost the 
taxpayers of this country an additional $500 million this year. I would 
suggest to the chairman of the full committee that there is in fact a 
substantive reason for doing this, and that is that it will take away 
from the impetus to get this bill passed.
  You have a bipartisan approach that has passed in the U.S. Senate. 
All it requires is for us to move this bill in the Committee on 
Appropriations and get this thing done. While we sit and dawdle and 
dither, we end up costing the taxpayer millions and millions of 
dollars.
  This is simply a tactic to throw in what is not an issue that is in 
the public view, it is out of the public view, but if you shove this 
into this bill, what will end up occurring is we will cost the taxpayer 
money. We will do it without ever showing them the light of day as to 
what has happened, and it will give a great deal more credence to the 
ability of the chairman of the Subcommittee on Housing and Community 
Opportunity to then gut the protections for the poor that will be 
contained in the bill. That is the ultimate objective of what is 
occurring here today.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LAZIO of New York. Mr. Speaker, I yield myself two minutes for 
the purpose of entering into a dialog with the gentleman from 
Massachusetts [Mr. Kennedy].
  Let me begin by saying that I believe deeply that this demonstration 
program needs to be extended. I think even if we were to come to an 
agreement tomorrow with the Senate, and I think the chairman of the 
full panel has explained what our position is, we would still need, 
because of regulations and rules, there would be a time between 12 and 
18 months before we would get an actual program in effect, in which we 
would need this extension.
  I hear the gentleman from Massachusetts has no intention of going 
along with that, and these other reforms and extensions are so 
important at this point. We cannot allow the flood insurance program to 
lapse, we cannot allow these extenders to lapse, and we need to protect 
seniors to the point where I am wondering if I made a unanimous consent 
request to delete the sections that are offensive to the gentleman from 
Massachusetts, if that would win his support of the rest of the 
provisions of this measure?
  Mr. KENNEDY of Massachusetts. Mr. Speaker, will the gentleman yield?
  Mr. LAZIO of New York. I yield to the gentleman from Massachusetts.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, it would indeed. I very 
much appreciate the chairman's willingness to provide that kind of 
compromise and I look forward to working with the gentleman on the mark 
to market issue. I think there are a number of extenders, and I just 
wanted to let the gentlemen know as well as the chairman of the full 
committee, the gentleman from Iowa [Mr. Leach], know that I know the 
gentleman from Nebraska [Mr. Bereuter] and others have had concerns 
about rural housing programs and a number of other extenders.
  I did try to communicate to the chairman's office that we would be 
happy to work with the gentleman on those noncontroversial extenders, 
and I appreciate the offer that the gentleman has made here on the 
floor.
  Mr. FRANK of Massachusetts. Mr. Speaker, will the gentleman yield?
  Mr. LAZIO of New York. I yield to the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Speaker, I want to express my 
appreciation to the gentleman for doing this. I would urge the next 
time, to the gentleman, work this out before the gentleman ruins my 
afternoon.
  Mr. LAZIO of New York. Mr. Speaker, reclaiming my time, let me hold 
my tongue.


        Modification to Motion Offered by Mr. Lazio of New York

  Mr. LAZIO of New York. Mr. Speaker, I ask unanimous consent that S. 
562 be amended to strike sections 301 and 302 from title III.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  The text of the modification is as follows:
       Modification offered by Mr. Lazio of New York.
       Beginning on page 6, line 5 strike out sections 301 and 302 
     and renumber succeeding sections accordingly.

  Mr. LAZIO of New York. Mr. Speaker, I yield such time as he may 
consume to the distinguished gentleman from Nebraska [Mr. Bereuter], my 
friend and colleague on the Committee on Banking and Financial Services 
and the Subcommittee on Housing and Community Opportunity.
  Mr. BEREUTER. Mr. Speaker, I rise in strong support of S. 562, as 
amended, and urge my colleagues to vote for this important measure. I 
thank the gentleman for his work on the legislation, his initiative, 
and this Member also felt that the comments of the gentleman from Iowa, 
the chairman, should have been compelling when he discussed the 
motivations and objectives of the legislation. But I am glad to see we 
seem to have arrived at an arrangement here which while it will not 
satisfy everybody, nevertheless permits, for example, the extenders to 
go ahead.
  Mr. Speaker, as the title of the bill implies, this measure protects 
senior citizens, one of the Nation's most exploited populations, from 
unscrupulous financial service providers.
  Recent years have seen the development of truly innovative financial 
tools to assist our aging population. Among these is the reverse 
mortgage. This product rewards seniors for exercising financial 
prudence by allowing them to have access to the equity they have built 
up in their homes without taking out a new first trust mortgage.
  Unfortunately, as mentioned a few moments ago, unscrupulous financial 
planners sometimes have been gouging seniors with inappropriate fees 
for information which is otherwise available free of charge.
  This measure authorizes the Secretary of Housing and Urban 
Development to take appropriate actions to restrict unnecessary and 
excessive costs associated with reverse mortgages. The authority should 
enable HUD to maintain the reverse mortgage as a valued tool in 
financial planning for seniors, and protect them from being exploited 
unwittingly.
  In addition to the important protections provided to seniors, this 
measure also contains two other important provisions, among others, 
which this Member supports.
  First, the bill extends for two years section 538, the rural rental 
multifamily housing loan guarantee program. Legislation permanently 
authorizing the section 538 loan guarantee program passed the House on 
April 8, 1997, by an overwhelming bipartisan vote. Unfortunately, the 
other body has failed to consider this legislation for other extraneous 
reasons, I gather, and, thus, a more modest authorization is included 
in this measure.

[[Page H7307]]

  The section 538 loan guarantee program, which this Member authored 
with lots of help from his colleagues on both sides of the aisle, 
guarantees repayment of loans made by private lenders to either State 
housing agencies, nonprofit organizations, or for-profit investors, who 
build or rehabilitate affordable multifamily rental problems in 
nonmetropolitan areas. This innovative program is a prudent and cost-
effective supplementary program to the traditional expensive Federal 
direct lending program.
  Another provision which this Member supports is a 2-year 
reauthorization of the National Flood Insurance Program, which the 
subcommittee chairman has mentioned, or NFIP. As a member of the 
Committee on Banking and Financial Services, this Member was actively 
involved in writing parts of the recently enacted NFIP reform 
legislation under the leadership of the gentleman from New York, 
Chairman Lazio.
  Therefore, this Member is pleased that the program will continue to 
operate at least somewhat more effectively for 2 more years until this 
Congress or some future Congress finally enacts the more fundamental 
reforms which are certainly needed. Note should be made that a 
problematic provision included in recent disaster assistance 
legislation has expired and is not extended by this bill. Specifically, 
a provision lowering the waiting period on new flood policies from 30 
to 15 days has expired, and for the benefit of the American taxpayer it 
should not be resurrected.
  In closing, Mr. Speaker, this Member strongly supports this 
legislation and urges his colleagues and the Members of the other body 
to approve this measure as soon as possible.
  Mr. KENNEDY of Massachusetts. Mr. Speaker, if the chairman of 
committee has no further speakers, I yield back the balance of my time.
  Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I would just once again urge all Members to support 
these important extensions, protection for senior citizens from being 
ripped off, antifraud provisions, protections for public housing in 
general. This is an important vote for rural housing, for people in 
flood-prone areas to ensure they have proper protection, and I would 
urge an aye vote.
  Mr. Speaker, I include a section-by-section analysis of S. 562 for 
the Record.

                       S. 562--Section-by-Section

     Section 1. Short title
       Provides that the name of the Act may be cited as the 
     ``Housing Programs Extension Act of 1997''.

             TITLE I--SENIOR CITIZEN HOME EQUITY PROTECTION

     Section 102. Disclosure requirements, prohibition of funding 
         of unnecessary or excessive costs
       Amends Section 235(d) of the National Housing Act involving 
     Home Equity Conversion Mortgages insured under FHA, and (1) 
     requires a full disclosure of all costs related to 
     originating the mortgage and (2) clarifies the HUD 
     Secretary's authority to appropriately restrict unnecessary 
     or excessive costs related to the origination of the reverse 
     mortgage.
     Section 103. Implementation
       Requires the HUD Secretary to issue expeditiously an 
     interim notice to implement the provisions of the Act. 
     Further provides that the Secretary shall, within ninety days 
     of the date of enactment, issue final regulations, after 
     notice and opportunity for comment.

 TITLE II--TEMPORARY EXTENSION OF PUBLIC HOUSING AND SECTION 8 RENTAL 
                         ASSISTANCE PROVISIONS

     Section 201. Public housing ceiling rents and income 
         adjustments and preferences for assisted housing
       Extends the public housing ceiling rents authority and the 
     definition of adjusted income under the public housing 
     program, and the suspension of Federal preferences, through 
     September 30, 1998.
     Section 202. Public housing demolition and disposition
       Extends the suspension of the one-for-one replacement 
     requirement through September 30, 1998.
     Section 203. Public housing funding flexibility and mixed-
         finance developments
       Extends the public housing flexible funding and mixed-
     finance development authorities through September 30, 1998. 
     The flexible funding authority enables public housing 
     authorities to use their modernization assistance under 
     section 14 and their development assistance under section 5 
     of the 1937 Act for any eligible activity authorized under 
     sections 14, 5, or applicable Appropriations Acts (HOPE VI), 
     and for up to 10% of such assistance, any operating subsidy 
     purpose authorized by section 9 of the 1937 Act.
     Section 204. Minimum rents
       Extends the minimum rent requirement (requiring minimum 
     rents of up to $50) through September 30, 1998.
     Section 205. Provisions relating to section 8 rental 
         assistance program
       (a) Take-One, Take-All, Notice Requirements, and Endless 
     Lease Provisions. Extends suspension of three requirements of 
     the Section 8 program (``take-one, take-all''; 90-day notice 
     requirement; and ``endless lease'') through September 30, 
     1998.
       The ``take-one, take-all'' provision of the 1937 Act 
     requires owners who have entered into a housing assistance 
     payments contract on behalf of any tenant in a multifamily 
     housing project to lease any available unit in the project to 
     an otherwise qualified holder of a certificate or voucher.
       The 90-day notice provision for the Certificate and Voucher 
     programs require that owners notify tenants 90 days prior to 
     termination of a contract.
       The ``endless lease'' provision requires that owners not 
     terminate tenancy except for serious or repeated violations 
     of the lease, the law, or for other good cause. This section 
     would limit this requirement to the lease term.
       (b) Fair Market Rentals. Extends through September 30, 
     1998, the requirement that the Secretary establish fair 
     market rents for an area, for purposes of the Section 8 
     program, at a level equal to the 40th percentile rent of 
     rental distributions of standard quality rental units for the 
     area.

  TITLE III--REAUTHORIZATION OF FEDERALLY ASSISTED MULTIFAMILY RENTAL 
                           HOUSING PROVISIONS

     Section 303. Multifamily housing finance pilot programs
       Extends through September 30, 1998, two multifamily risk-
     sharing demonstration programs, with a 15,000 additional unit 
     limitation for each. Multifamily risksharing with qualified 
     financial entities was authorized by the Housing and 
     Community Development Act of 1992 (Section 542). The program 
     enables HUD to enter into risk-sharing partnerships to 
     provide rental housing through two pilot programs for 
     qualified financial entities and for qualified housing 
     finance agencies, and allows FHA to support the multifamily 
     housing market through traditional and new products.
     Section 304. HUD disposition of multifamily housing
       Enhanced Authority for HUD Disposition of Multifamily 
     Housing. Section 204 of HUD's FY 1997 appropriations Act gave 
     HUD permanent authority to manage and dispose of HUD-owned 
     multifamily properties and mortgages held by the Secretary on 
     such terms and conditions as HUD determines, notwithstanding 
     any other provision of law. Clarifies that the authority to 
     manage and dispose of HUD-owned properties includes the 
     provision of grants and loans from the General Insurance Fund 
     for the necessary costs of rehabilitation or demolition.
     Section 305. Multifamily mortgage auctions
       Extends the authority to auction mortgages insured under 
     Section 221 of the National Housing Act through December 31, 
     2005. The current authority expired at the end of FY 1996, 
     and unless extended, HUD will be forced to take assignment of 
     any mortgage where the mortgagee elects to assign such 
     mortgage to HUD. As a result, HUD will incur the financial 
     costs of servicing these mortgages until they are sold in a 
     competitive sale. In addition, extending HUD's ability to 
     auction mortgages prior to assignment allows the mortgage to 
     remain in private hands and avoids payment of a claim against 
     the FHA fund. Costs of the auction activity would be paid 
     from multifamily credit subsidy.
     Section 306. Interest reduction payments in connection with 
         sales of section 236 mortgages held by HUD
       Provides HUD with limited authority to sell a certain 
     percentage of section 236 mortgages under the National 
     Housing Act with the interest reduction payments contract 
     intact. In this way, the payments would remain available to 
     the project to assist with affordability of the units, 
     support rehabilitation (if any), and increase the selling 
     price of the mortgage. The authority under this provision is 
     limited to an amount of loans which in the aggregate shall 
     not have an unpaid principal balance in excess of 
     $92,000,000, and exercise of the authority shall be subject 
     to prior approval in an appropriations Act.
     Section 307. Assignment of regulatory agreements in 
         connection with sales of mortgages held by HUD
       Permits HUD to provide for the assumption of all rights and 
     responsibilities under the regulatory agreement when it sells 
     a HUD-held mortgage. The provision would enable HUD to reduce 
     staff time associated with assets which have already been 
     sold.

     TITLE IV--REAUTHORIZATION OF RURAL HOUSING PROGRAM ACT OF 1997

     Section 401. Housing in underserved areas program
       Amends Section 509(f)(4)(A) of the Housing Act of 1949 to 
     extend its authorization for

[[Page H7308]]

     two additional fiscal years, from fiscal year 1997 to fiscal 
     year 1999. This program provides a set-aside out of Sections 
     502 (single-family), 504 (Repair Loans and Grants), 514 (Farm 
     Labor), 515 (Multifamily Housing) and 524 (site loans) for 
     projects in underserved counties as defined by the Housing 
     Act of 1949.
     Section 402. Housing and related facilities for elderly 
         persons and families and other low-income persons and 
         families
       (a) Authority to Make Loans. Extends Section 515(b)(4) of 
     the Housing Act of 1949, the authority of the Secretary of 
     Agriculture to make loans, for two additional fiscal years 
     until September 30, 1999. Section 515 provides for 
     multifamily housing loans.
       (b) Set-Aside for Non-Profit Entities. Extends Section 
     515(w)(1) of the Housing Act of 1949, providing for a certain 
     level of funding to be set-aside for non-profit entities, for 
     an additional two fiscal years until September 30, 1999.
     Section 403. Loan guarantees. For multifamily rental housing 
         in rural areas
       Amends Section 538(q) of the Housing Act of 1949 by 
     inserting a new provision establishing that the Secretary may 
     enter into loan guarantee commitments under this section only 
     to the extent that the costs of the guarantees entered into 
     in a fiscal year do not exceed the amounts provided for that 
     fiscal year in appropriations Acts.
       Amends Section 538(t) to extend authorization for loan 
     guarantees made under this title until fiscal year 1999.

      TITLE V--REAUTHORIZATION OF NATIONAL FLOOD INSURANCE PROGRAM

     Section 501. Program expiration
       Amends Section 1319 of the National Flood Insurance Act of 
     1968 to extend the Act for two additional years until 
     September 30, 1999.
     Section 502. Authorization of borrowing authority
       Amends Section 1309 of the National Flood Insurance Act of 
     1968 to extend the borrowing authority until September 30, 
     1999.
     Section 503. Emergency implementation of program
       Amends Section 1336(a) of the National Flood Insurance of 
     1968 to extend the expiration date until September 30, 1999.
     Section 504. Authorization of appropriations for studies
       Amends Section 1376(c) of the National Flood Insurance Act 
     of 1968 to extend funding authorization for appropriations, 
     in such sums as may be necessary, for studies conducted under 
     the relevant title of the Act, for each of fiscal years 1998 
     and 1999.

  Mr. GILMAN. Mr. Speaker, I rise in support of the Senior Citizen Home 
Equity Protection Act. Senior citizens are one of our Nation's greatest 
assets. The guidelines set by this bill will help protect seniors from 
losing the financial independence they have worked all their lives to 
achieve.
  The Senior Citizen Home Equity Protection Act gives the U.S. 
Department on Housing and Urban Development authority to issue rules to 
protect seniors from being overcharged while trying to obtain reverse 
mortgages. This act also requires that the mortgagor receives a full 
disclosure of all the costs acquired while attempting to attain this 
type of mortgage.
  A reverse mortgage allows senior citizens age 62 or older to borrow 
money against the equity of their homes and does not require them to 
make monthly or principal payments. The purpose of a reverse mortgage 
is to allow seniors who are ``house rich,'' but ``cash poor'' to access 
the equity they have invested in their homes so they may have the money 
they need to live comfortably on a day to day basis.
  If it were not for reverse mortgages, a senior citizen homeowner 
might have to put their home on the market to cash in on its equity 
just so they can survive. This would also result in their having no 
other option but to move into a retirement home, ultimately making them 
lose the peace of mind and security they had built up in the 
neighborhoods they used to live in.
  Some senior citizens may need our help in protecting the equity which 
they spent most of their lives in building. That is why I urge my 
colleagues to join in unanimously supporting the Senior Citizen Home 
Equity Act.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in support of S. 562, 
the Senior Citizen Home Equity Protection Act.
  This bill would authorize the Housing and Urban Development [HUD] 
Department to issue rules to protect senior citizens from being charged 
unreasonable fees for obtaining reverse mortgages; it reauthorizes for 
2 years Federal rural multifamily rental housing development programs 
and the National Flood Insurance program; it extends for 6 months 
certain public housing reforms that have been included in 
appropriations acts the past 2 fiscal years; and it extends for 1 year 
a section 8 portfolio reengineering demonstration program included in 
last year's VA-HUD appropriations act.
  Maintaining a secure, fair and reliable source of credit for home 
purchases by senior citizens is very important to me. The service that 
past generations provided this country is invaluable. Through two World 
Wars and economic downturns, they stayed the course and kept this 
country on track to become the economic, social and political success 
that it is today.
  This bill will provide security for seniors who for whatever reason 
want to purchase a home.
  On the behalf of the residents of the 18th Congressional District I 
am in full support of this bill and would like to urge my colleagues to 
join me in voting for this measure.
  Mr. PAUL. Mr. Speaker, today we are asked to support a bill which has 
the Federal Government engaged in the unconstitutional business of 
further regulating mortgage brokers, extending Federal housing 
programs--some of which would be extended permanently by this bill--and 
offering flood insurance programs.
  This bill will add new regulations by Government and impose new 
restrictions on the private sector which provides most of the safe and 
affordable housing in this country. Such regulations and restrictions 
raise costs and limit availability of housing for our citizens insofar 
as such additional costs may ultimately be passed along to the 
consumer. This bill will further add to the Federal Government's 
intrusion in the housing market by limiting private sector initiatives 
to help consumers obtain mortgage loans, and eventually, their own 
homes.
  Second, this bill would make authorization of some programs permanent 
so that future representatives of the people will not be able to judge 
the wisdom of these specific programs. To the extent Congress has any 
constitutional right to legislate in this sphere at all, certainly, 
Representatives must have the legal ability to weigh the specific needs 
of their constituents and make appropriate decisions. Some of these 
multi-housing programs are mere demonstration projects which have not 
proved their worthiness. They have, however, proved their cost to the 
taxpayer with ever-rising tax bills without the corresponding benefits. 
Government-run housing schemes are less efficient, more costly and 
limit the private sector's ability to provide the services that the 
public wants at a price that properly takes into account true economic 
costs. Even such misnamed ``good government'' housekeeping provisions 
merely perpetuate and extend the Government's reach into the private 
sector and, ultimately, into the wallets of taxpaying Americans.
  With respect to Federal flood insurance programs, the constitutional 
separation of powers strictly limited the role of the Federal 
Government and, at the same time, anticipated that maintaining the 
balance between cost, risk, and the benefits of insuring one's property 
was best reserved--via the ninth and tenth amendments--to State and 
local governments, or individuals respectively. One can insure oneself 
against virtually every natural disaster at some policy premium. 
Determination of whether the peace of mind and other benefits of 
insurance outweigh the premium for any particular property is not 
amongst the constitutionally enumerated Federal powers. The private 
market provision and resulting cost internalization of such insurance 
premiums will accomplish much toward enhancing macroeconomic efficiency 
and, at the same time, eliminate the necessity for the national 
government to overstep its constitutional bounds with governmental 
``pseudo-insurance.''
  In addition, this bill did not go through the proper committee 
process. I am a member of the House Committee on Banking and Financial 
Services and have not had the opportunity to vote on, amend, improve, 
or block this piece of legislation. It is in the committee process, 
where respective Members make it their responsibility to be better 
versed in that committee's respective issues, amend and hopefully 
improve bills as they move through the legislative process. Members of 
the Banking Committee should have had the opportunity to review 
relevant legislation before it is voted on by the entire House of 
Representatives.
  As a U.S. Congressman, I remain committed to the Constitution which 
I, only months ago, swore to uphold. This country's founders recognized 
the genius of separating power amongst Federal, State and local 
governments as a means to maximize individual liberty and make 
Government most responsive to those persons who might most responsibly 
influence it. For each of these reasons, I must rise in opposition to 
S. 562, the Senior Citizen Home Equity Protection Act.
  Mr. LAZIO of New York. Mr. Speaker, I have no further requests for 
time, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York [Mr. Lazio] that the House suspend the rules 
and pass the Senate bill, S. 562, as amended.
  The question was taken.
  Mr. CONDIT. Mr. Speaker, I object to the vote on the ground that a 
quorum

[[Page H7309]]

is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 5, rule I, and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

                          ____________________