[Congressional Record Volume 155, Number 39 (Thursday, March 5, 2009)]
[Extensions of Remarks]
[Page E577]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             HELPING FAMILIES SAVE THEIR HOMES ACT OF 2009

                                 ______
                                 

                               speech of

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                      Thursday, February 26, 2009

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 1106) to 
     prevent mortgage foreclosure and enhance mortgage credit 
     availability:

  Mrs. MALONEY. Mr. Chair, I rise today in strong support of H.R. 1106, 
the ``Helping Families Save Their Homes Act.'' This legislation is 
needed now more than ever, and I want to commend Chairman Frank, 
Chairman Conyers, and the Leadership for working together to bring this 
bill to the Floor.
  It is important to remember that behind the economic and housing 
statistics are real people--the hard-working Americans and their 
families who are facing difficulties paying their bills every day. H.R. 
1106 contains several key provisions to ensure that homeowners will 
have more options available to them to stay in their homes.
  The bill before us would make necessary improvements to the Hope for 
Homeowners program including reducing current fees that have 
discouraged lenders from voluntarily participating and offering a 
$1,000 incentive payment to servicers for each successful refinance of 
existing loans. H.R. 1106 will ensure that predatory lenders, who bear 
some of the responsibility for today's housing situation, will not be 
approved as lenders under FHA programs. The legislation also provides a 
safe harbor from liability to mortgage servicers who engage in certain 
loan modifications, and it makes permanent an increase, from $100,000 
to $250,000, in the amount of bank or credit union deposits insured by 
Federal banks and credit union regulators. H.R. 1106 establishes a 5-
year restoration plan for the National Credit Union Administration 
(NCUA) which is currently required to restore the equity ratio of the 
Share Insurance Fund within one year.
  I think most of us agree that bankruptcy should be the option of last 
resort. However, for those homeowners facing bankruptcy, H.R. 1106 will 
allow bankruptcy judges to reduce the principal, extend the repayment 
period, or authorize the reduction of an exorbitant interest rate to a 
level that helps make a mortgage more affordable. I am glad that we 
have been able to make changes to this legislation that will enable 
homeowners to stay in their homes, while at the same time providing 
greater certainty to lenders and to the secondary market.
  I am hopeful that this bill will help to stem the tide of 
foreclosures and ensure that our neighborhoods do not experience a 
cascade of increased vacant lots and decreased property values.
  The President has proposed a plan to help make it easier for 
homeowners, including those who are still in repayment but at risk for 
default, to refinance their mortgages at around the current market 
rate, or modify their loans. H.R. 1106 is an important step in moving 
forward with that plan. We must act now. The American people deserve no 
less than our full commitment to helping them through these troubled 
times.
  I urge my colleagues to support this legislation.

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