[Congressional Record Volume 153, Number 177 (Thursday, November 15, 2007)]
[House]
[Pages H13964-H13969]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROVIDING FOR CONSIDERATION OF H.R. 3915, MORTGAGE REFORM AND ANTI-
PREDATORY LENDING ACT OF 2007
Mr. ARCURI. Mr. Speaker, by direction of the Committee on Rules, I
call up House Resolution 825 and ask for its immediate consideration.
The Clerk read the resolution, as follows:
H. Res. 825
Resolved, That at any time after the adoption of this
resolution the Speaker may, pursuant to clause 2(b) of rule
XVIII, declare the House resolved into the Committee of the
Whole House on the state of the Union for consideration of
the bill (H.R. 3915) to amend the Truth in Lending Act to
reform consumer mortgage practices and provide accountability
for such practices, to establish licensing and registration
requirements for residential mortgage originators, to provide
certain minimum standards for consumer mortgage loans, and
for other purposes. The first reading of the bill shall be
dispensed with. All points of order against consideration of
the bill are waived except those arising under clause 9 or 10
of rule XXI. General debate shall be confined to the bill and
shall not exceed one hour equally divided and controlled by
the chairman and ranking minority member of the Committee on
Financial Services. After general debate the bill shall be
considered for amendment under the five-minute rule. It shall
be in order to consider as an original bill for the purpose
of amendment under the five-minute rule the amendment in the
nature of a substitute recommended by the Committee on
Financial Services now printed in the bill. The committee
amendment in the nature of a substitute shall be considered
as read. All points of order against the committee amendment
in the nature of a substitute are waived except those arising
under clause 10 of rule XXI. Notwithstanding clause 11 of
rule XVIII, no amendment to the committee amendment in the
nature of a substitute shall be in order except those printed
in the report of the Committee on Rules accompanying this
resolution. Each such amendment may be offered only in the
order printed in the report, may be offered only by a Member
designated in the report, shall be considered as read, shall
be debatable for the time specified in the report equally
divided and controlled by the proponent and an opponent,
shall not be subject to amendment except as specified in the
report, and shall not be subject to a demand for division of
the question in the House or in the Committee of the Whole.
All points of order against such amendments are waived except
those arising under clause 9 or 10 of rule XXI. At the
conclusion of consideration of the bill for amendment the
Committee shall rise and report the bill to the House with
such amendments as may have been adopted. Any Member may
demand a separate vote in the House on any amendment adopted
in the Committee of the Whole to the bill or to the committee
amendment in the nature of a substitute. The previous
question shall be considered as ordered on the bill and
amendments thereto to final passage without intervening
motion except one motion to recommit with or without
instructions.
Sec. 2. During consideration in the House of H.R. 3915
pursuant to this resolution, notwithstanding the operation of
the previous question, the Chair may postpone further
consideration of the bill to such time as may be designated
by the Speaker.
The SPEAKER pro tempore. The gentleman from New York is recognized
for 1 hour.
Mr. ARCURI. Mr. Speaker, for purpose of debate only, I yield the
customary 30 minutes to the gentleman from Washington (Mr. Hastings).
All time yielded during consideration of this rule is for purpose of
debate only.
I yield myself such time as I may consume.
General Leave
I also ask unanimous consent that all Members be given 5 legislative
days in which to revise and extend their remarks on House Resolution
825.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. ARCURI. Mr. Speaker, House Resolution 825 provides for
consideration of H.R. 3915, the Mortgage Reform Anti-Predatory Lending
Act of 2007, under a structured rule. The rule provides 1 hour of
general debate controlled by the Committee on Financial Services. The
rule waives all points of order against consideration of the bill,
except for clause 9 and clause 10 of rule XXI. The rule makes in order
the Financial Services Committee-reported substitute. The rule also
makes in order 18 amendments printed in the Rules Committee report.
=========================== NOTE ===========================
On Page H13964, November 15, 2007, the following appeared: Mr.
ALTMIRE. Mr. Speaker, House Resolution 825 provides for
consideration of H.R. 3915,
The online version should be corrected to read: Mr. ARCURI. Mr.
Speaker, House Resolution 825 provides for consideration of H.R.
3915,
========================= END NOTE =========================
Mr. Speaker, let me begin by thanking and congratulating Financial
Services Committee Chairman Frank and Ranking Member Bachus for truly
working in a bipartisan fashion to develop this legislation. I would
like to point out that the legislation was approved by the Financial
Services Committee last week by a vote of 45-19 with support of nine
Republicans, including the ranking member. It is this type of
bipartisan spirit that the American people demand from Congress, and we
as the new majority will continue to provide that.
Mr. Speaker, the subprime lending crisis threatens our Nation's
economic security and the dreams of homeownership for many American
working families. Now more than ever, American families are at risk of
losing their homes. In the second quarter of this year, more than
286,000 mortgage loans entered the foreclosure process.
With the housing market in decline, foreclosures pose a grave danger
to the stability of local property values and to our national economy.
This lending crisis can be traced to rapid increases in the subprime
mortgage, most of which were made with no Federal supervision. This
lack of supervision allowed some lenders, not all, to prey on innocent
consumers' dreams of achieving homeownership and force punitive
subprime mortgages upon them.
Many of these predatory loans feature low teaser introductory rates
which lure borrowers who may be eligible for lower fixed rates into
loans they have little chance of repaying once the rates increase.
{time} 0930
Mr. Speaker, the Mortgage Reform and Anti-Predatory Lending Act would
require lenders to prove that borrowers can in fact repay their loans
and ensure that vulnerable consumers aren't pressured into refinancing
their loans unless the refinanced loan will be to their benefit. And to
further protect borrowers, the legislation would curb incentives to
steer consumers to high-cost loans and enhance consumer protections for
high-cost mortgages.
Finally, the legislation would also provide long overdue and much
needed regulation of the lending industry by requiring that mortgage
lenders be licensed by States.
Mr. Speaker, every American deserves the opportunity to achieve the
American Dream of homeownership. I am proud to stand here today with my
colleagues from both sides of the aisle as we take meaningful,
commonsense steps to help more American families achieve that dream.
Mr. Speaker, I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Speaker, I want to thank the
gentleman from New York (Mr. Arcuri) for yielding me the customary 30
minutes, and I yield myself such time as I may consume.
(Mr. HASTINGS of Washington asked and was given permission to revise
and extend his remarks.)
Mr. HASTINGS of Washington. Mr. Speaker, this rule allows for the
consideration of the Mortgage Reform and Anti-Predatory Lending Act,
aimed at reforming mortgage lending practices in order to prevent
subprime mortgage problems in the future.
I support efforts to better protect homeowners through simplified
borrower disclosure, greater focus on deceptive practices, and enhanced
education, training and oversight of lenders.
While I recognize that several significant changes were made to
address some of the most concerning parts of this legislation during
the committee markup, additional improvements and clarification are
still needed. Consumers must have protections without unduly
restricting credit opportunities or creating enormous liability for the
mortgage lending industry.
We must improve the mortgage process to empower consumers to make
good choices among competitors, not limit options for them. Also, we
must ensure that this bill does not hurt the consumers that it is
intended to help, especially those consumers with less than perfect
credit histories that hope to achieve the American Dream of
homeownership.
The current climate of rising defaults and foreclosures, especially
in the subprime market, has shown us that poor lending decisions and
abusive lending practices must be addressed.
[[Page H13965]]
And while we must deal with the bad actors in the lending industry,
let's not forget about the good lenders and investors that have helped
thousands of families successfully purchase their homes.
This bill is a step in the right direction, but improvements should
be made as this legislation moves forward. I was hoping that the
Democratic-controlled Rules Committee would see fit to provide an open
rule for consideration of this bill. Under an open rule, Members could
come to the floor and offer amendments in their effort to perfect this
bill. While this rule allows several amendments to be offered, it is
unfortunate that this restrictive rule also prevents Members of
Congress from offering amendments on the floor during debate of the
bill.
Mr. Speaker, I reserve the balance of my time.
Mr. ARCURI. Mr. Speaker, I yield 3 minutes to the gentlewoman from
California (Ms. Matsui), my colleague from the Rules Committee.
Ms. MATSUI. I thank the gentleman from New York for yielding me time.
Mr. Speaker, I rise today in support of the rule and the underlying
legislation, the Mortgage Reform and Anti-Predatory Lending Act of
2007.
The subprime housing crisis is a real threat to our economy. It has
already had a devastating impact on our families, our neighbors, and
our communities. My home district of Sacramento ranks among the hardest
hit areas in the country.
My district ranks fifth in the Nation in adjustable rate mortgages
that are expected to reset to higher rates in the future, putting more
homeowners at risk of foreclosures. Just last quarter, close to 4,000
homes were foreclosed upon. Without decisive action, this crisis will
continue to threaten many more hardworking Americans. As property
values continue to fluctuate, it has become harder for many borrowers
who are currently locked into these so-called teaser rates to refinance
to more affordable loans.
Mr. Speaker, this crisis has affected every aspect our economy.
Coupled with the rising gas and heating prices, our country is entering
into a very cold winter indeed. In response, the Federal Reserve has
cut interest rates and produced more currency, which has further
weakened the U.S. dollar to new lows, prompting inflation fears.
Mr. Speaker, we in Congress have a duty to address this crisis.
Chairman Frank's bill is a step in the right direction. The bill
establishes standards for home loans, while holding lenders and brokers
accountable. The bill also prevents lenders and brokers from steering
consumers to high-cost subprime loans just to make a quick extra buck.
Mr. Speaker, Congress needs to be a partner with the communities
which we serve. We must work together to find a comprehensive strategy
that will protect our homeowners.
Mr. HASTINGS of Washington. Mr. Speaker, I reserve my time.
Mr. ARCURI. Mr. Speaker, I yield 6 minutes to the gentleman from
Georgia (Mr. Scott).
Mr. SCOTT of Georgia. I thank my distinguished colleague from New
York (Mr. Arcuri). I really appreciate this opportunity.
Mr. Speaker, I stand here with 100 percent support for H.R. 3915. Let
me just start off my comments by sharing with you and the Members of
the House and the people of this country how severe this issue within
the mortgage industry is, particularly within my district and my
beloved State of Georgia. We are one of the leading States that have
been victims of abusive lending practices, predatory lending, and
certainly we are at the epicenter of this mortgage crisis facing us in
this country.
For example, Mr. Speaker, 40 percent of the loans in my district are
in the subprime area. Homeowners in my district have lost $159 million
in home equity value. One of the counties in my district, Clayton
County, is one the leading counties in this State that has suffered so
desperately from home foreclosures due to subprime lending, abuses
within the lending practice, and certainly the epicenter of it all, the
eye of the storm, is predatory lending.
My State of Georgia has been fighting this battle for an awfully long
time. Even during my days in the Georgia State Legislature as a Georgia
State Senator, we had to deal with this issue of abuse from Fleet
Finance.
So I want to just start with laying that out, Mr. Speaker, so you can
see how critical this issue is, not only within my State of Georgia,
but facing this entire Nation. That is why we have this bill. It is an
important bill, and it is important because it is urgent that we move
in a timely manner.
Let me just state very quickly, Mr. Speaker, if I may, what the key
areas are in the reform of this bill.
First of all, it creates a new licensing structure for mortgage
brokers and loan originators. This is done to ensure that they are
licensed and that they are held accountable for the quality of the
loans that they originate. This is very important.
Second, it creates a new minimum standard for mortgages and
protections to ensure that all loans are properly underwritten, and
eases the way for high-quality or qualified loans, qualified mortgages,
to be securitized. This is very important. This is especially important
because it ensures continued liquidity in the mortgage securities
market, and that is what we really need to make sure that we do
foremost, is to make sure we have the money there, to make sure we have
the liquidity there.
The third key area is it expands the definition for high-cost
mortgages, which greatly increases the protections available for
consumers if they desire to select a subprime mortgage.
Now, this bill also addresses reckless loan underwriting, it
addresses abusive subprime payment penalties, and it deals with direct
incentives for mortgage brokers to steer families into expensive and
risky loans. There are a lot of these kinds of unsatisfactory practices
that are going on in this industry, let me say not by everyone, but
there are some bad actors in this mortgage industry situation. This
bill attempts to weave a delicate balance to move in and deal with
those that are doing wrong and provide the kinds of protections that
our consumers need.
This legislation is needed because all Americans should be protected
against predatory lenders. Those are the ones that we are after the
most, these folks that sit there and they look and they target areas.
They target the most vulnerable people among us. They target
minorities. They target African Americans especially. They target
Hispanics. They target senior citizens, some of the most vulnerable
people. They take advantage of the significant complexity of the
language and the complicated situations that are involved in the
mortgage industry, so that many people don't know what they are signing
for on the bottom line, and they take advantage of that.
We need this legislation because consumers should get good credit.
The best thing we can do for consumers currently on bad loans and for
future borrowers is to ensure that they can get good credit.
This legislation is needed because credit availability must be
preserved, especially in the troubled market that we are in right now.
Lenders should not make loans that they know that the consumer cannot
pay back.
Mr. Speaker, it is almost unspeakable for many of these loan
originators, who know that many of these people can't pay these loans,
but they go ahead and they deal with it.
Let me just deal finally with the arguments that there are some on
the side that say the legislation is too weak. There are others that
say the legislation is too strong. Well, I would just like to say we in
Congress have to work with almost everything. It is sort of like making
sausage. We have to pull this. We have to pull that. We have to try to
come up with a bill that, first of all, we can get through the
Congress.
But I am willing to bank my stake on it, Mr. Speaker, that this is a
good bill. This is a bill which is a first step which we can deal with.
And if they say that this bill is so weak, why are my phones ringing in
my office, ringing both here and in Atlanta, Georgia, from bankers and
from brokers who are saying that this bill is too strong?
This bill is an effort to move. It is important national lending
legislation that, for the first time, prohibits steering a consumer to
a loan that would do these four things: A loan that the consumer cannot
pay, a loan that does not provide net tangible benefits, a loan that
has predatory characteristics, and a loan that treats borrowers
differently based on their race or their economic standing.
[[Page H13966]]
In most cases, this bill also will allow States, if they want to, to
have even a stronger bill, in most cases.
Mr. Speaker, I really appreciate this opportunity. I thank Mr. Arcuri
for your patience with me. I hope we will have a chance to come back
later in the day and address some of the issues of signing liability
and preemption.
Mr. HASTINGS of Washington. Mr. Speaker, I reserve my time.
Mr. ARCURI. Mr. Speaker, I yield 5 minutes to the gentlewoman from
New York (Mrs. Maloney).
Mrs. MALONEY of New York. I thank my colleague from the Empire State,
the Great State of New York, for yielding to me, and for his leadership
on the Rules Committee and in so many other areas in our Congress.
Mr. Speaker, I rise in strong support of this rule for H.R. 3915, the
Mortgage Reform and Anti-Predatory Lending Act. I would like to thank
the Rules Committee Chairwoman, Louise Slaughter, for crafting this
rule, and I would like to thank her for making in order 18 amendments,
and one amendment that I will offer later on reforms for prepayment
penalties on subprime loans.
I congratulate Chairman Frank for his stewardship on this difficult
legislation, and I thank my colleagues, Congressman Watt and
Congressman Miller from the Great State of North Carolina, which passed
antipredatory lending in their State legislature that has been
referenced many times in committee meetings and hearings.
I also thank the staff on the Democratic and Republican side that
have worked very, very hard, our individual staffs and staffs of the
committee, on facing this difficult challenge.
Mr. Speaker, I believe that this legislation has been done in a fair,
open, and bipartisan process. During the committee markup last week, we
entertained numerous amendments and consistently worked with the
ranking member and the other Republicans on the committee. The result
of all the chairman's hard work on this bill was demonstrated when this
bill passed the committee on a bipartisan vote of 45-19.
The bill we are considering today is carefully crafted legislation
that was developed after our committee carefully considered the
testimony and advice of many experts and witnesses.
{time} 0945
I know the Financial Institutions and Consumer Credit Subcommittee,
which I chair, held a series of hearings looking into what can and
should be done. I am happy to see a number of suggestions recommended
by witnesses reflected in this legislation.
This was no easy task. As each and every one of us knows, the
mortgage market is incredibly complex and any new proposal to clamp
down on abusive practices must be done in a way that does not disrupt
what is working correctly. I am proud to say that I believe this
legislation has struck that delicate balance. The rule protects this
legislation from amendments that may disrupt that balance, yet fairly
allows for amendments that could enhance this legislation. I urge all
of my colleagues to vote for this fair rule and for the underlying
legislation.
Any legislation on this issue must strike a very careful balance that
provides enhanced consumer protections without unnecessarily limiting
the availability of loans to creditworthy borrowers. This bill contains
a number of provisions that strengthen underwriting standards and
provide additional protections for consumers while not unduly
constraining sound lending and the secondary market. These include
setting a clear standard that mortgages should be made based on a
borrower's ability to repay, which is absolute common sense; setting up
a system for licensing nationally; setting professional standards for
mortgage brokers and an appropriate system of registration for loan
officers; and setting a reasonable limits on assignee liability to
ensure that investors will want to provide liquidity for housing
finance.
This bill, I think, is a very strong one. It adds accountability and
transparency to the system. It builds investor confidence in the
system; and without that confidence, we will continue to face a growing
market crisis.
We heard in our hearings from 2 to 5 million people, depending on the
economists who were testifying, may lose their homes. That is more than
lost their homes during the Great Depression. So the committee focused
in two areas: first, on helping people stay in their homes with various
measures that we passed, and this legislation going forward will
prevent the types of abuses and really the turmoil in the market that
was not in place because there were not oversight transparency and
safeguards.
I congratulate Chairman Frank on a very difficult balancing act, and
I believe the legislation before us will not only help individuals stay
in their homes, prevent abuses in the future, but will help the
liquidity, stability, and creditworthiness of our entire economy. I no
longer call it a subprime crisis; it's a credit crisis. We need to
address it. This is tremendously important. We must pass this bill, and
I urge all my colleagues to join me in voting for it.
Mr. HASTINGS of Washington. Mr. Speaker, I am pleased to yield 4
minutes to the gentleman from Texas, a member of the Financial Services
Committee (Mr. Hensarling).
Mr. HENSARLING. I thank the gentleman for yielding.
Mr. Speaker, I rise in opposition to this rule.
I am very disappointed that one of the most substantial portions of
the bill will not be able to be debated today as it was in committee.
That has to do with the entirety of the issue of what is known as
``assignee liability.'' It's a very important part of the provision. It
deserves to be fully aired on the floor of the House. I am disappointed
that the Rules Committee did not find this particular amendment in
order.
Mr. Speaker, I submitted two amendments to the Rules Committee, one
of which I have been led to believe the chairman of the full committee
is going to accept. So it's kind of interesting, the one of the more
controversial nature, and actually one that is more substantive,
unfortunately, was not found in order.
Mr. Speaker, we know how important it is that we have a vibrant
secondary market to add liquidity to that market so that people can
realize their dream, the American Dream of owning their own home.
Nobody denies that we face great challenges in our subprime market, and
I don't think anybody denies that it has the potential to have a great
disruption in our economy. But many of us question whether this bill is
going to make matters worse or make it better. I believe, Mr. Speaker,
it is going to make matters worse.
And one of the matters in the bill that is going to make matters
worse is assignee liability. People who choose to invest by having a
piece of a group of mortgages and they buy that on what is known as the
secondary market, all of a sudden they are going to have legal
liability for what somebody else may or may not have done.
So investors not just all over America, Mr. Speaker, but all over the
world are going to have options that they look at on where they want to
invest their hard-earned money, and many of them are going to say all
of a sudden there is all this murky uncertainty, Do I really want to
invest in the secondary mortgage market when all of a sudden somebody
could turn around and sue me? I didn't originate the mortgage. I don't
know the homeowner. I don't even know the person who signed the loan
documents. I'm just trying to have an investment for my family, and all
of a sudden I can be held liable. Maybe I'll go invest in something
else.
At a time when we need even more liquidity in the market this
provision will lead to less liquidity.
And all of a sudden we have this murky legal standard. All of a
sudden we have got loan originators having to identify loan products
that are ``appropriate.'' Well, if you want to talk about a standard
that's in the eye of the beholder, it's ``appropriate.'' We talk about
``net tangible benefit.'' Well, who is supposed to determine that? How
is that going to be discerned? Loans with ``predatory
characteristics,'' well, one person's predatory characteristics may be
another person's homeownership opportunity.
We still have to remember, Mr. Speaker, that for all the subprime
loans that have gone bad, millions and millions of Americans have had
an opportunity to own their first home because of the subprime market.
And
[[Page H13967]]
here we are again moving in the exact opposite direction. And I think
that this assignee liability, this could prove to be a trial attorney's
dream and a homeowner's nightmare. And I am very disappointed a major
portion of this bill that was debated in committee will not be debated
on the full floor.
For this reason, I would certainly oppose this rule and oppose the
underlying bill.
Mr. ARCURI. Mr. Speaker, I yield 4\1/2\ minutes to the distinguished
chairman of Financial Services, the gentleman from Massachusetts (Mr.
Frank).
Mr. FRANK of Massachusetts. Mr. Speaker, I will address much of the
substance of the bill in the general debate. I do want to say we are
here dealing with an issue, subprime mortgages, that is the single
biggest contributor to the greatest financial crisis the world has seen
since the Asian crisis of the late nineties.
We are in a very difficult situation now in the financial markets;
and wholly unregulated subprime mortgages, unregulated by the
originator and then unregulated in the secondary market, has given rise
to this.
The previous speaker talked about the danger we could do with our
liability for the securitizers. I would note that one of those who
volunteered to our committee that we should do something, he wasn't
specific about what, but something to put some liability there was the
Chairman of the Federal Reserve, Mr. Bernanke, who has talked about
what he called the originate-to-distribute model, i.e., people who give
mortgages who are not themselves subject to regulation who then in turn
sell into a secondary market, and what has been lost in that is the
responsibility to worry about repayment. Now, we will talk more about
this.
There is a delicate balance here. I am not in favor and this bill
does not in general preempt the rights of States to do what they think
is necessary in the consumer protection area. But in the matter I just
talked about, when we are talking about a national secondary market, we
did believe some preemption is necessary. We have tried to define it
precisely and hold it to a minimum necessary to have a functioning
market. As I said, I will address some of those more.
The bill, I believe, does strike a balance that can be a difficult
one to achieve, particularly in that area of some preemption so that
you have a functioning secondary market, but not to the point where you
intrude on the rights of States to make these decisions.
I do want to address the rule. At my request this rule does make in
order a number of amendments from both parties. Several of the
amendments offered by Republicans will be, I hope, accepted. The
manager's amendment itself is a genuinely bipartisan amendment. Much of
the manager's amendment, in fact, came from the minority; and, indeed,
in our committee the ranking member had a major input into this. This
bill did pass committee by a vote of 45-19, which was the Democrats
and, not a majority, but a significant number of Republicans.
We have, I believe, a rule that allows most of the issues that are at
stake to be voted on. There are amendments that would strike major
parts of the bill. The gentleman from North Carolina has one. The
gentleman from Georgia has one. There is a third, the gentleman from
New Jersey. Three amendments that would strike very much at the heart
of the bill. I believe they should be debated and I would hope
defeated, but they are made in order.
I did consult very much with the ranking member, and I believe we
have a procedure today that doesn't cover everything, but will have the
major issues before us.
At the end of today, I hope we will have passed a bill and it will be
a bill which I must say will probably leave all parties at interest a
little bit unhappy. I'm not pleased with that, but I think given the
competing interests here, that is the best we can do, particularly on
this issue of whether or not we preempt.
I would note that while some of the groups that I work with in the
consumer area are disappointed because they wanted no preemption at
all, passage of this bill is supported by the Conference of State Bank
Supervisors. They think there are some things they would like to see
changed further on. It's supported by the NAACP and La Raza. And it
has, we believe, the essential elements.
The core is this: loans made by banks as originators subject to bank
regulation have not been the problem. The problem has come when loans
were originated by unregulated people, not that they were morally
deficient, but there was no regulation. Here is the core of this bill:
we have tried talking to the bank regulators and others to take the
principles that the bank regulators have applied to loans originated by
regulated depository institutions and apply them to the unregulated
originators, the brokers. And it is not the case that the brokers were
morally deficient. In all of these professions, we have an overwhelming
majority of honest people. But the problem is, in the absence of any
regulation and the availability of a secondary market with no rules,
that minority that was not scrupulous caused us problems. This bill
fixes that.
Mr. HASTINGS of Washington. I yield myself 2 minutes, Mr. Speaker.
Mr. Speaker, I just want to respond to my friend from Massachusetts
when he outlined the amendments that were made in order and the
substance of some of those amendments to be debated and also suggesting
that he would oppose some and accept others. I have always admired that
in him when he comes up to the Rules Committee and feels that that's
part of the legislative process.
The point that the gentleman from Texas was making, apparently he had
two amendments, and one of them the gentleman from Massachusetts is
going to work with him on; so that one will be resolved. But the
gentleman from Texas felt very strongly that the amendment that was not
made in order, really the only amendment that had any substance was not
made in order, was his amendment, and we don't get a chance to debate
it. I think that's a valid argument from his perspective. And I know
the gentleman from Massachusetts had nothing to say obviously about
that.
So I just wanted to make that point, that, yes, there are a lot of
amendments that were made in order. Some of the amendments that were
made in order will be addressed later on. But I wanted to make the
point of what the gentleman from Texas had made that his amendment was
not made in order.
Mr. FRANK of Massachusetts. Mr. Speaker, will the gentleman yield?
Mr. HASTINGS of Washington. I yield to the gentleman from
Massachusetts.
Mr. FRANK of Massachusetts. I thank the gentleman. I appreciate his
comments, and I think he's right.
The gentleman from Texas' amendment not made in order was a
substantive amendment. I do believe, as I looked at the amendments,
every other amendment from either side that presented a substantive
issue was made in order, and, frankly, I assumed that this could be the
recommit, if the minority cared about it.
{time} 1000
We did in the rule, as we should have, provide for every substantive
issue to be debated, except that one. There is the motion to recommit,
and that would be available for the motion to recommit.
Mr. HASTINGS of Washington. The gentleman has always been open to
debate. I am glad he has given us advice on maybe what we want to put
in the motion to recommit. One of the easiest ways to do that obviously
would be to have made that amendment in order. He had nothing to do
with that decision. That was a decision of the Rules Committee. I wish
it had been made in order. An amendment was offered to make that in
order and was defeated on a party-line vote.
Mr. FRANK of Massachusetts. Mr. Speaker, will the gentleman yield?
Mr. HASTINGS of Washington. I yield to the gentleman from
Massachusetts.
Mr. FRANK of Massachusetts. I appreciate it. I don't contest anything
he said. But I would say it did seem to me, as I looked at it in a
neutral way, that the minority did need some help on dealing with
recommits.
Mr. HASTINGS of Washington. I always appreciate the gentleman
offering his advice.
I reserve my time.
Mr. ARCURI. Mr. Speaker, I yield an additional 2 minutes to the
gentleman from Georgia (Mr. Scott).
[[Page H13968]]
Mr. SCOTT of Georgia. Mr. Speaker, I think it is very important
because the assignee liability issue did come up, and I think as we
move through this debate it would be clear to get a clear understanding
of what we have in that so we will have a point of reference.
First of all, in this issue, if a consumer gets a loan that violates
the minimum standards, in this bill are minimum standards, then the
consumer has cause of action against assignees that have purchased that
loan. The consumer may sue to rescind the loan and recoup other costs.
There has to be an element of liability in the issue. We have worked to
get a delicate balance that both protects the consumer while at the
same time also saving some elements of liability so that we keep the
market free of unnecessary suits.
Further, when the holder of a bad loan initiates a foreclosure, the
consumer may exercise a rescission right under this to stop
foreclosure. This is important. If the rescission right has expired,
the consumer may seek actual damages plus costs against the creditor,
the assignee or the securitizer. This provision gives real power to the
consumer who can sue to stop a foreclosure of a bad loan or to rescind
the bad loan.
Now, we also have some protections from liability for the loan
originator. Number one, somebody may ask, why even give some protection
from lawsuits to any entity that buys a loan? I believe that most
consumers realize that the market provides the funding for loans and
that the constant threat of legal action will indeed increase the cost
of those loans for everybody. Somebody will have to pay that cost. And
normally, that cost will fall on the consumer. So we have struck a
delicate balance in the assignee liability.
Mr. HASTINGS of Washington. Mr. Speaker, could I inquire of my friend
from New York if he has any more speakers.
Mr. ARCURI. I have no additional speakers.
Mr. HASTINGS of Washington. So if the gentleman is prepared to close,
I will close on my side.
Mr. ARCURI. I am prepared to close, yes.
Mr. HASTINGS of Washington. Mr. Speaker, I yield myself the balance
of the time.
Mr. Speaker, it really is time for Congress to act and pass a stand-
alone veterans funding bill. For the last several weeks, I have
encouraged my colleagues to vote ``no'' on the previous question so
that we can amend the rule to allow the House to immediately act to go
to conference with the Senate on H.R. 2642, the Military Construction
and Veterans Affairs funding bill and appoint conferees.
We have heard comments from Democrats that when Republicans were in
charge that we did not get our work on the veterans funding bill
completed on time. So I would ask my Democrat colleagues, if you don't
like the way things were run then, then why are you exactly on the same
path? Mr. Speaker, a final veterans funding bill is sitting waiting to
be acted on. The Democrat leaders have bent over backwards to prevent
Congress from passing the final bill. The stalling is costing our
American veterans $18.5 million a day. Since the fiscal year began 46
days ago, our Nations's veterans are out $851 million. The veterans
funding bill passed the House this summer with over 400 votes and
passed the Senate with over 90 votes, and the President will sign the
bill. So let's stop delaying, and let's defeat the previous question so
that we cannot just say that we are committed to providing for veterans
the funding increase that they need, but we actually get this increase
to them.
Mr. Speaker, I ask unanimous consent to have the text of the
amendment and extraneous material inserted in the Record prior to the
vote on the previous question.
The SPEAKER pro tempore (Mr. Pastor). Is there objection to the
request of the gentleman from Washington?
There was no objection.
Mr. HASTINGS of Washington. Mr. Speaker, I urge my colleagues to
oppose the previous question, and I yield back the balance of my time.
Mr. ARCURI. Mr. Speaker, so the record is clear, as the distinguished
chairman of the Military Construction VA subcommittee, Mr. Edwards, so
eloquently stated many times right here on the floor of this House,
there is a clear difference between the new Democratic majority's
approach to veterans and the previous Republican leadership approach.
The difference is that under the leadership of Speaker Pelosi and the
new Democratic majority, supporting veterans is one of the highest
priorities of this Congress. My colleagues on the other side of the
aisle will claim that we are leaving veterans out in the cold. As
elected Federal representatives, we are accountable for not only our
words but our actions as well. What the other side won't tell you is
that we had passed a continuing resolution in the beginning months of
this Congress because the previous Congress failed to ever pass the
MilCon-VA appropriations bill last year. They also won't tell you that
the continuing resolution included an increase of $3.4 billion for
veterans health care. The other side doesn't want to talk about the
emergency supplemental spending bill we passed a few months ago which
included an additional $1.8 billion for veterans discretionary
spending. I am no mathematician, but $3.4 billion and $1.8 billion add
up to $5.2 billion, which is larger than any increase in veterans
spending passed by the previous Republican leadership.
I admit I am a new Member, but I can still look back at the record to
see that the last time the previous Republican leadership passed the
Veterans appropriation bill on time was 1996. It sounds to me like the
other side of the aisle is suffering from a case of selective memory.
The new Democratic majority has not forgotten about our veterans. We
have already passed legislation which has been signed into law that
will provide an additional $5.2 billion for our veterans. Mr. Speaker,
the numbers speak for themselves. The new Democratic majority has and
will continue to provide for our Nation's veterans.
Back to the issue, we are facing a national crisis with hundreds of
thousands of families losing their homes and an expected 2 million more
over the next 2 years. The Mortgage Reform and Anti-Predatory Lending
Act provides long-overdue and much-needed protection to those families.
As I said earlier, every American deserves the opportunity to achieve
the American Dream of home ownership. It is because of the leadership
and bipartisanship of Chairman Frank and Ranking Member Bachus that I
am proud to stand here today as we make meaningful, commonsense steps
to help more American families achieve that dream.
I urge a ``yes'' vote on the previous question and on the rule.
The material previously referred to by Mr. Hastings of Washington is
as follows:
Amendment to H. Res. 825 Offered by Mr. Hastings of Washington
At the end of the resolution, add the following:
Sec. 3. The House disagrees to the Senate amendment to the
bill, H.R. 2642, making appropriations for military
construction, the Department of Veterans Affairs, and related
agencies for the fiscal year ending September 30, 2008, and
for other purposes, and agrees to the conference requested by
the Senate thereon. The Speaker shall appoint conferees
immediately, but may declare a recess under clause 12(a) of
rule I for the purpose of consulting the Minority Leader
prior to such appointment. The motion to instruct conferees
otherwise in order pending the appointment of conferees
instead shall be in order only at a time designated by the
Speaker in the legislative schedule within two additional
legislative days after adoption of this resolution.
(The information contained herein was provided by
Democratic Minority on multiple occasions throughout the
109th Congress.)
The Vote on the Previous Question: What It Really Means
This vote, the vote on whether to order the previous
question on a special rule, is not merely a procedural vote.
A vote against ordering the previous question is a vote
against the Democratic majority agenda and a vote to allow
the opposition, at least for the moment, to offer an
alternative plan. It is a vote about what the House should be
debating.
Mr. Clarence Cannon's Precedents of the House of
Representatives, (VI, 308-311) describes the vote on the
previous question on the rule as ``a motion to direct or
control the consideration of the subject before the House
being made by the Member in charge.'' To defeat the previous
question is to give the opposition a chance to decide the
subject before the House. Cannon cites the Speaker's
[[Page H13969]]
ruling of January 13, 1920, to the effect that ``the refusal
of the House to sustain the demand for the previous question
passes the control of the resolution to the opposition'' in
order to offer an amendment. On March 15, 1909, a member of
the majority party offered a rule resolution. The House
defeated the previous question and a member of the opposition
rose to a parliamentary inquiry, asking who was entitled to
recognition. Speaker Joseph G. Cannon (R-Illinois) said:
``The previous question having been refused, the gentleman
from New York, Mr. Fitzgerald, who had asked the gentleman to
yield to him for an amendment, is entitled to the first
recognition.''
Because the vote today may look bad for the Democratic
majority they will say ``the vote on the previous question is
simply a vote on whether to proceed to an immediate vote on
adopting the resolution . . . [and] has no substantive
legislative or policy implications whatsoever.'' But that is
not what they have always said. Listen to the definition of
the previous question used in the Floor Procedures Manual
published by the Rules Committee in the 109th Congress, (page
56). Here's how the Rules Committee described the rule using
information from Congressional Quarterly's ``American
Congressional Dictionary'': ``If the previous question is
defeated, control of debate shifts to the leading opposition
member (usually the minority Floor Manager) who then manages
an hour of debate and may offer a germane amendment to the
pending business.''
Deschler's Procedure in the U.S. House of Representatives,
the subchapter titled ``Amending Special Rules'' states: ``a
refusal to order the previous question on such a rule [a
special rule reported from the Committee on Rules] opens the
resolution to amendment and further debate.'' (Chapter 21,
section 21.2) Section 21.3 continues: ``Upon rejection of the
motion for the previous question on a resolution reported
from the Committee on Rules, control shifts to the Member
leading the opposition to the previous question, who may
offer a proper amendment or motion and who controls the time
for debate thereon.''
Clearly, the vote on the previous question on a rule does
have substantive policy implications. It is one of the only
available tools for those who oppose the Democratic
majority's agenda and allows those with alternative views the
opportunity to offer an alternative plan.
Mr. ARCURI. I yield back the balance of my time, and I move the
previous question on the resolution.
The SPEAKER pro tempore. The question is on ordering the previous
question.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. HASTINGS of Washington. Mr. Speaker, on that I demand the yeas
and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.
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