[Congressional Record Volume 155, Number 40 (Friday, March 6, 2009)]
[Extensions of Remarks]
[Pages E584-E585]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             HELPING FAMILIES SAVE THEIR HOMES ACT OF 2009

                                 ______
                                 

                               speech of

                       HON. LUCILLE ROYBAL-ALLARD

                             of california

                    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:

  Ms. ROYBAL-ALLARD. Mr. Chair, I rise today in support of H.R. 1106, 
the Helping Families Save Their Homes Act of 2009.
  Mr. Chair, my congressional district, like districts all across the 
nation, has been hit hard by the foreclosure crisis. In 2007 Los 
Angeles County had a foreclosure rate of 12%. In 2008 this number had 
jumped to 35%. Worse yet, while many parts of the country have already 
received the full brunt of the foreclosure crisis, experts agree that 
the full force of the crisis has yet to reach Los Angeles.
  I have been concerned that previous congressional efforts to 
stabilize the economy and help my Los Angeles constituents have failed 
to address the root of the problem--defaulting mortgages.
  I am pleased that the Helping Families Save Their Homes Act will make 
substantive reforms to end the rising tide of foreclosures and keep 
families in their homes.
  Specifically, the measure will allow a judge to modify primary 
mortgages in the case of bankruptcy so that families can stay in their 
homes. Currently, when a family files for bankruptcy they can modify 
loans on second homes, and other property but not on their primary 
residence. It Is widely recognized that judicial modification of 
mortgages on primary residences is one of the most significant things 
that we can do to keep families in their homes.
  By encouraging homeowners to work out their loans before filing for 
bankruptcy, the measure ensures that bankruptcy still remains a measure 
of last resort. The bill will also adapt federal loan modification 
programs to make it easier for mortgage servicers to participate.
  In addition, the bill begins to address a growing concern--the 
growing number of organizations that aim to profit off of families who 
are in crisis and at risk of losing their home. This problem is highly 
visible in my congressional district, and is a cause of great concern. 
The measure increases oversight over the FHA home mortgage insurance 
program to better ensure that predatory lenders are barred from 
participating.
  Mr. Chair, this legislation is necessary to help our nation's path of 
recovery by addressing the cause of the economic crisis.
  I urge my colleagues to vote ``yes'' on this critical measure that 
will keep our constituents in their homes.

[[Page E585]]



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