[Congressional Record Volume 153, Number 153 (Wednesday, October 10, 2007)]
[Extensions of Remarks]
[Page E2116]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  PROVIDING FOR CONSIDERATION OF H.R. 3648, MORTGAGE FORGIVENESS DEBT 
                           RELIEF ACT OF 2007

                                 ______
                                 

                               speech of

                       HON. STEPHANIE TUBBS JONES

                                of ohio

                    in the house of representatives

                        Tuesday, October 9, 2007

  Mrs. JONES of Ohio. Mr. Speaker, I rise today in support of H.R. 
3648, the Mortgage Forgiveness Debt Relief Act of 2007, a much-needed 
bill that will provide relief to homeowners facing foreclosure on their 
homes. I appreciate the leadership of the Ways and Means Committee 
Chairman, Charlie Rangel. I also applaud the Members from both sides of 
the aisle who are supporting this critical piece of legislation for 
homeowners. I cannot think of a more bipartisan issue than basic 
shelter.
  It comes as a surprise to most Americans that when debt is forgiven 
by a lending institution in a foreclosure, that this amount must be 
included as income on their tax statement. In a time of rising 
foreclosures I cannot imagine anything more upsetting to a family than 
this scenario. The situation usually occurs when the family cannot pay 
their mortgage and then must give up their home. Then they must pay tax 
on phantom income when the lender forgives some part of the homeowner's 
mortgage.
  In my home State of Ohio, the foreclosure epidemic went from bad to 
worse last year as the number of new cases grew by nearly 24 percent 
from 2005. Cuyahoga County led the state in new cases with 13,610 new 
filings last year. This ranking has attracted national attention with 
Ohio's foreclosure rate currently at 18 percent which is higher than 
the national average of 17 percent.
  I must also point out that predatory lenders often target low-income 
and minority communities. Subprime loans are three times more likely in 
low-income neighborhoods than in high-income neighborhoods and five 
times more likely in minority neighborhoods than in white 
neighborhoods. This is an outrage.
  Nothing is more symbolic of the American Dream than the ownership of 
our homes. Almost all of us dream of the day when we can have a place 
of our own. For most Americans, home ownership is the single biggest 
investment they will ever make. That is why the loss of one's home is 
also one of the most humiliating and debilitating experiences that 
anyone can go through. It is, at its core, an issue of humanity.
  That is why I am pleased to rise in support of this piece of 
legislation that will allow taxpayers to exclude from their income debt 
that was forgiven by a financial institution or lender. We cannot sit 
by as a Congress and add insult to injury to our most vulnerable 
taxpayers.
  Many of the homeowners in my district in Cleveland--which has some of 
the highest foreclosure rates in the Nation--need relief, not rhetoric. 
This is the same relief all Americans see and to which we must provide 
access. This bill provides some relief, but need I remind my colleagues 
that much more must be done on this front, and I look forward to 
working on other legislative initiatives that 5 will help to address 
the plight of the American homeowner.

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