[Congressional Record Volume 155, Number 171 (Wednesday, November 18, 2009)]
[House]
[Page H13118]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             HOUSING CRISIS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Ohio (Ms. Kaptur) is recognized for 5 minutes.
  Ms. KAPTUR. Mr. Speaker, unemployment and foreclosures are on the 
rise. In my hometown of Toledo, Ohio, unemployment is officially at 
11.1 percent, but that is just those who are looking for jobs. The real 
number is much higher as so many people have dropped out or are working 
part time and they really want full-time jobs. Many, many more people 
are discouraged and are no longer trying to find jobs. Kids are moving 
in with their parents. These are people, many of whom are losing their 
homes. The housing crisis continues.
  Before the financial crisis unfolded, our housing crisis was 
unfolding. In fact, it triggered the financial crisis. Congress acted, 
passing the Housing and Economic Recovery Act of 2008 at the end of 
July last year. I didn't vote for it because I knew it would not work. 
And you know what, it hasn't worked.
  The HOPE for Homeowners program has failed so miserably that HUD had 
to change the program, and Congress since has had to pass fixes to try 
to get more participation into it. It hasn't worked. As of mid-July 
this year, the program that the Congressional Budget Office estimated 
would help up to 400,000 people rework their mortgages has closed 50. 
Fifty mortgages. That's five-zero, from a program that was supposed to 
help 400,000 people. Fifty homeowners have been helped?
  The administration announced the Making Homes Affordable Program in 
February, released rules and regulations in March, and they told us 
that the program would help 3 million to 4 million homeowners. As of 
September 30, Treasury reported that 758,000 modification offers, 
listen to the words, my friends, had been extended with 487,000 trial 
modifications begun. Hmm. I will be interested to hear when the first 
modification moved from a trial to a real modification that actually 
kept somebody, a real person or family, in their homes.
  There is no peace for the family while they are in this trial period. 
They still have to have a backup plan in case something falls through. 
They are still stressed beyond what you and I can imagine.
  The servicers get to sit back and wait, keep making their money. 
Either way, they make plenty, either from the homeowner or from the 
government. They have got it at both ends. This program probably won't 
even help a handful of homeowners.
  So we have just 487,000 homeowners with these trial modifications out 
of the millions of people who are losing their homes. Now that's not 4 
million people, like the program said it would take care of. And again, 
it is just trial modifications. Trial, not real. They get 3 months to 
show they can handle the modification payments. What happens if they 
lose their job? If they have already lost their job, unemployment 
income does not count as income for modification. Can you believe that? 
We can still tax it, but it does not count to banksters and servicers 
when they are looking to rack up fees, kick people out, sell the homes 
for a fraction of what they are worth and maybe pull a profit; and if 
not, they move that property and destroy the stability of the family 
that once resided in the home.
  I still hear that servicers and banks are hard to work with on 
modifications. Boy, is that an understatement.
  I heard that the Making Homes Affordable Program isn't working. Well, 
it isn't. The solutions are not working because the system does not 
work. The housing crisis will continue as long as the job situation is 
so poor. It takes employment to make house payments. It takes workouts 
to keep people in their homes, even with lease-to-own programs over a 
40-year mortgage.
  That is why I am joining my colleague, Bobby Rush, in forming the 
Jobs Now Caucus. Please join us in taking a stand for putting our 
communities, our families, our Nation back to work and keeping them in 
their homes. This new caucus will advocate for policy initiatives that 
stimulate and maintain a strong economy that is based on sustainable 
development that will lead to one common goal across the political 
spectrum: Creating jobs again in America.
  The American people want to work. Employment brings stability, and 
the ability to stay in your home or buy a home and build your community 
makes this Nation truly strong. Please join Congressman Bobby Rush, 
myself, and Congresswoman Candice Miller in our bipartisan Jobs Now 
Caucus.

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