[Congressional Record Volume 155, Number 39 (Thursday, March 5, 2009)]
[Extensions of Remarks]
[Pages E578-E579]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             HELPING FAMILIES SAVE THEIR HOMES ACT OF 2009

                                 ______
                                 

                               speech of

                        HON. PATRICK J. KENNEDY

                            of rhode island

                    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 foreclosures and enhance mortgage credit 
     availability:

  Mr. KENNEDY. Mr. Chair, I rise in support of the Helping Families 
Save Their Homes Act and in support of President Obama's Homeowner 
Affordability and Stability Plan.
  We simply cannot overstate the effect that the housing crisis has had 
on our economy. Foreclosures continue to decimate both our financial 
system and the neighborhoods that we call home. In Rhode Island, we are 
suffering from the highest foreclosure rate in New England and housing 
prices have dropped 25 percent in the last year.
  President Obama's plan is a welcome recognition that we cannot begin 
to resolve our economic crisis without first stemming the tide of 
foreclosures. Under his leadership, the Homeowner Affordability and 
Stability Plan will help up to 7 to 9 million American families 
restructure their mortgages to avoid foreclosure. This plan will help 
responsible homeowners in danger as well as our neighbors, our banks 
and our local economies. For example, this initiative will save the 
average homeowner from price declines of as much as $6,000 in the value 
of their home.
  It is long past time for a President who recognizes that bold action 
is needed to curb the foreclosure crisis. Bankruptcy judges must be 
given the power to adjust mortgages on primary residences. The language 
in the bill we

[[Page E579]]

are debating today is very similar to legislation I cosponsored earlier 
this Congress and I applaud President Obama for his leadership on this 
issue.
  Yet, there are some banks that claim this legislation will make 
homeowners choose bankruptcy over working out their mortgages. These 
are the same banks that have flatly refused to help work out those 
mortgages over the last year. These concerns have been directly 
addressed. To make sure nobody abuses the courts, this legislation will 
require all homeowners seeking bankruptcy protection to certify that 
they first attempted to modify their mortgage with the banks.
  Every time we try to reform our financial system, we are told by 
industry and skeptic alike that consumer protections like those in the 
Homeowner Affordability and Stability Plan might ``destabilize'' the 
market. Our government accepted that advice for much of the last decade 
and it landed us in an economic crisis. The great people of Rhode 
Island have watched their home equity plummet because of reckless 
behavior on Wall Street. Frankly, that is the kind of destabilization I 
am worried about.
  It is true that this legislation will make a number of important 
revisions to the Hope for Homeowners Program. However, the real problem 
with Hope for Homeowners was that the lending industry never had any 
interest in participating. Until homeowners have some bargaining power 
and the lending industry understands that these loans must be reworked, 
there will be no real progress. Currently, bankruptcy judges can change 
the terms of loans for automobiles, stores, vacation homes and 
factories but not primary mortgages. It's time we let them do something 
much more important: help Americans to keep their houses.
  This plan will empower homeowners and give lenders the incentive they 
need to save millions of mortgages from foreclosure. I look forward to 
continuing to work with my colleagues in Congress and with President 
Obama to tackle the housing crisis and restore America's economy.

                          ____________________