[Congressional Record Volume 155, Number 40 (Friday, March 6, 2009)]
[Extensions of Remarks]
[Page E582]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             HELPING FAMILIES SAVE THEIR HOMES ACT OF 2009

                                 ______
                                 

                               speech of

                           HON. BOB ETHERIDGE

                           of north carolina

                    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. ETHERIDGE. Mr. Speaker, I rise in support of H.R. 1106, Helping 
Families Save Their Homes Act of 2009.
  Across our country, millions of responsible homeowners are facing 
foreclosure. Some reports indicate there could be up to 6 million 
families currently in danger of losing their homes. Although the 
foreclosure crisis has not been as pronounced in my state as in some 
others, North Carolina has seen one of the fastest rises in 
unemployment in the country, with a rate of 8.2% earlier this year. 
These job losses will risk damaging neighborhoods and towns across the 
state by placing more families at risk of defaulting on mortgages. H.R. 
1106 will ensure that lending institutions work with borrowers to help 
keep Americans in their homes to strengthen the housing market, which 
is critical for our nation's economic recovery.
  H.R. 1106 takes steps to address this crisis and help families across 
the country. This bill will help millions of struggling homeowners 
refinance or restructure their mortgages. H.R. 1106 reforms the Hope 
for Homeowners initiative by lowering fees and providing $1,000 to 
servicers that participate. This will make the initiative more 
attractive to lenders and more effective in reaching the many families 
seeking help. H.R. 1106 provides ``safe harbor'' for mortgage lenders 
so that they can modify mortgages without the threat of lawsuits from 
the secondary mortgage market. In addition, this bill would protect 
consumers' savings by permanently increasing the amount of federal 
deposit insurance savings in banks or credit unions from $100,000 to 
$250,000.
  H.R. 1106 also contains a provision that would allow for the 
modification of some mortgages under the terms of Chapter 13 
bankruptcy. Current law allows for a bankruptcy judge to adjust the 
principal on all secured loans except for those on primary residences. 
Provisions in H.R. 1106 ensure that people can afford their mortgage. 
The bill also stipulates that judicial modification should only be 
employed as a last resort for saving a family's home. Only existing 
mortgage loans are eligible, and a judge is required to consider 
whether all other options are exhausted before changing the principal 
of a home loan. Finally, this bill ensures that if a borrower gets 
relief through this mortgage relief initiative and then sells their 
home for a profit, the lender is able to recoup a sizable portion of 
that profit. This is a key provision to incentivize lenders to work 
with at-risk borrowers who are seeking help through mortgage 
modification initiatives.
  In order to get our struggling economy back on track, we must address 
the foreclosure crisis, one of the main factors that precipitated this 
recession. Not only are foreclosures devastating to individual 
families, but their effect ripples throughout the economy, hurting 
manufacturers and construction firms, dropping consumer spending and 
confidence, and cutting the value of neighboring homes. H.R. 1106 is an 
important step to deal with this crisis.
  I support H.R. 1106, Helping Families Save Their Homes Act of 2009, 
and I urge my colleagues to join me in voting for its passage.

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