[Congressional Record Volume 154, Number 79 (Wednesday, May 14, 2008)]
[Extensions of Remarks]
[Page E921]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               ON THE FORECLOSURE PREVENTION ACT OF 2008

                                 ______
                                 

                               speech of

                          HON. JOHN D. DINGELL

                              of michigan

                    in the house of representatives

                         Thursday, May 8, 2008

  Mr. DINGELL. Madam Speaker, this legislation represents a fair, 
common sense solution that will allow homeowners to stay in their 
homes, and help stabilize the housing market. I would like to extend my 
gratitude to Chairman Frank for his hard work on this legislation, 
which will be of critical importance in Michigan, where are there are 
thousands of homeowners in danger of foreclosure. I am especially 
pleased that this bill includes legislation which I cosponsored that 
would provide up to $300 billion in new loan guarantees to help 
refinance at-risk borrowers into viable mortgages. In addition, this 
legislation includes important provisions that expand homeownership 
opportunities for veterans, seniors, and first-time homebuyers.
  This legislation will help both homeowners and lenders, but this is 
no bailout. Lenders who participate will have to take a loss, but their 
losses under this program will be far less than if these properties go 
into foreclosure. Borrowers who realize a profit when they sell their 
home must return some of that profit to the government. The United 
States provided similar leadership during the New Deal using a program 
run by the Home Owners' Loan Corporation (HOLC). Much like the HOLC, 
this program stands to save millions of homes from foreclosure at a 
minimum cost to the taxpayers.
  I would especially like to thank Chairman Frank for his assistance in 
securing passage of a provision important to the residents of Parkview 
Apartments in Ypsilanti, Michigan. I have been working for 4 years now 
to try to facilitate the transfer of this property to Ypsilanti Housing 
Authority. Chairman Frank and the staff of the Financial Services 
Committee have been instrumental in these efforts, which are designed 
to clarify Congressional intent regarding certain properties that 
entered the Department of Housing and Urban Development (HUD) property 
disposition process prior to the enactment of the Deficit Reduction Act 
(DRA) but where the initial proposed disposition was delayed.
  While I believe that Parkview is already subject to the 
grandfathering provision of the DRA, this provision clarifies that such 
properties should be considered ``pre-DRA'' properties, and that HUD 
should proceed with its prior disposition contracts as to those 
properties. This provision is one of many that was included in 
legislation that passed the House last year, and is now being included 
in this bill as part of a comprehensive housing package. This 
legislation is of the utmost importance to the Congress, and it is my 
hope and expectation that it will soon be enacted into law.

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