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




             HELPING FAMILIES SAVE THEIR HOMES ACT OF 2009

                                 ______
                                 

                               speech of

                         HON. CHRIS VAN HOLLEN

                              of maryland

                    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. VAN HOLLEN. Mr. Chair, I rise today in support of the Helping 
Families Save Their Homes Act.
  This important bill will help more Americans stay in their homes by 
addressing a major flaw in the Hope for Homeowners Program and by 
extending to single residence homeowners an option currently only 
available to owners of second and third homes.
  The Hope for Homeowners program was established in October of last 
year by the Bush Administration to help more Americans refinance. The 
Congressional Budget Office projected the program would let 400,000 
troubled homeowners swap risky loans for conventional 30-year fixed 
rate loans with lower rates.
  But, because of flaws in the program, and despite the tremendous 
resources the government is making available to banks, none of the 
major mortgage lenders have been willing to make the new mortgages 
required to refinance distressed properties. To date, only 25 loans 
have been renegotiated nationwide.
  So we gather here today to make the changes necessary so that more 
homeowners can take advantage of this important program.
  The bill makes two important changes: It reduces the fees and 
administrative burdens to loan underwriters by making the requirements 
associated with refinances more consistent with standard FHA practices. 
Also, the bill permits the Hope for Homeowners Program to pay lenders 
up to $1,000 to refinance each mortgage, and provides a safe harbor 
from liability to mortgage servicers who engage in loan modifications, 
workouts or other loss mitigation.
  To pay for these important changes, the bill is offset by a $2.316 
billion reduction in the $700 billion Troubled Asset Relief Program.
  For those homeowners facing bankruptcy, the bill permits judges to 
reduce the principal, interest rates, and fees owed on mortgages for 
primary residences. This is the same option already available for 
owners of yachts and vacation homes. The measure allows courts to 
reduce the principal on such mortgages to the current market value of 
the home, from the higher amount specified in the original mortgage. 
This provision should encourage banks to work with homeowners upfront 
and to exhaust every option so as to avoid having to settle the issue 
before a judge.
  I encourage my colleagues to join me in support of the Helping 
Families Save Their Homes Act. By helping struggling homeowners, we are 
helping reduce the number of foreclosed homes in our communities which 
should help stabilize home prices and strengthen our economy.

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