[Congressional Record Volume 148, Number 34 (Thursday, March 21, 2002)]
[Extensions of Remarks]
[Page E422]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  AIRLINE WORKERS AND VICTIMS OF TERRORISM MORTGAGE RELIEF ACT OF 2002

                                 ______
                                 

                           HON. BOBBY L. RUSH

                              of illinois

                    in the house of representatives

                       Wednesday, March 20, 2002

  Mr. RUSH. Mr. Speaker, on September 13, 2001, in response to the 
September 11th tragedy, Secretary Mel Martinez of HUD directed all FHA-
approved lenders to provide a 90-day mortgage forbearance for families 
with FHA insured mortgages who were affected by the recent terrorist 
attacks. ``Affected, borrowers are those individuals who were 
passengers or crew on the four hijacked airliners (American Airlines 11 
and 77, United Airlines 93 and 175), individuals employed on September 
11, 2001, in or near the World Trade Center, or in the Pentagon, and 
individuals whose financial viability was affected by the . . . events 
of [that] day.'' (HUD Mortgage Letter 01-21.)
  As evidenced by the $15 billion bail out that followed the events of 
September 11, the effects felt by the airline industry were amongst the 
most immediate and devastating experienced within the corporate world. 
It follows naturally, that the devastation experienced by the airlines 
was ultimately felt by the 150,000+ employees whose financial viability 
was affected by the ongoing wave of post-September 11th lay offs.
  Also affected by the tragic events of September 11th, are the 
families of those killed, who have experienced considerable difficulty 
in meeting their financial obligations. And while Congress, in creating 
the September 11th Victims Compensation Fund, has worked hard to stem 
the financial devastation felt by thousands of families after September 
11th, there are some who may be falling through the cracks.
  Fortunately there is a measure, which if revived and applied to 
parties affected by the events of September 11th, can help.
  The Airline Workers and Victims of Terrorism Mortgage Relief Act of 
2002 accomplishes this goal by:
  Adopting the expired language of HUD Letter 01-21;
  Making clear that the moratorium on FHA foreclosure outlined in HUD 
Letter 01-21 must apply to (1) laid off employees of foreign and 
domestic air carriers and (2) laid off employees of manufacturers 
aircraft used by foreign or domestic carriers;
  Expanding for all eligible borrowers, the 90-day forbearance to 180 
days from enactment;
  Requiring the Secretary of HUD to inform mortgagees of the 
aforementioned changes;
  Also, those eligible for compensation under the so-called ``9-11 
fund,'' (PL 107-42), would be covered until receipt of compensation 
money;
  Those who opt to forgo the compensation money by bringing suit, 
(Sec. 405(c)(3)(B)(i)), would still be eligible for forbearance for 18 
months after enactment, or until verdict rendered in the first lawsuit, 
whichever comes first, if suit is brought during the 180 day 
forbearance period; and
  The bill also stipulates that coverage under the Act would not count 
as a ``collateral source'' as defined by the Compensation Fund 
language. (Sec. 405(b)(3) provides that the Special Master ``shall 
reduce the amount of compensation . . . by the amount of the collateral 
source compensation the claimant has received or is entitled to 
receive. . . .'')
  In light of HUD Letter 01-21, as well as Congressional concerns over 
the health of the airline industry, and the financial well-being of the 
families of victims of September 11th, the Airline Workers and Victims 
of Terrorism Mortgage Relief Act of 2002 would afford Congress the 
perfect opportunity to give both groups the added assistance that they 
deserve.

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