[Congressional Record Volume 155, Number 192 (Thursday, December 17, 2009)]
[Extensions of Remarks]
[Page E3019]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         WALL STREET REFORM AND CONSUMER PROTECTION ACT OF 2009

                                 ______
                                 

                               speech of

                          HON. JERROLD NADLER

                              of new york

                    in the house of representatives

                       Friday, December 11, 2009

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 4173) to 
     provide for financial regulatory reform, to protect consumers 
     and investors, to enhance Federal understanding of insurance 
     issues, to regulate the over-the-counter derivatives markets, 
     and for other purposes:

  Mr. NADLER of New York. Madam Chair, I rise in strong support of this 
amendment to H.R. 4173, which I sponsored along with Congressman 
Marshall, Judiciary Committee Chairman Conyers, and many other of my 
distinguished colleagues.
  This amendment would help millions of Americans across the Nation and 
correct a glaring anomaly in our current law. If you are a family 
farmer, if you are a real estate speculator, or if you own 5 or 20 or 
50 homes, for example, you are allowed to use bankruptcy to modify your 
mortgage. The only exception is the family home. Our amendment would 
change that and allow bankruptcy judges to modify mortgages for people 
facing imminent foreclosure.
  Millions of Americans have lost their homes due to foreclosure and 
millions more are at risk of doing so. In fact, there were 937,840 
foreclosure filings in the third quarter of 2009. This was up 23 
percent from one year ago. It is time we helped these families, just as 
we have helped large banks and other financial institutions.
  Now, in the past we have heard from lenders that this kind of change 
will increase borrowing costs for everyone else. Of course, this is the 
same industry that in 2005 told us that making bankruptcy more onerous 
would reduce people's interest costs by $400 per year on their credit 
cards. Nothing of the sort happened.
  And we tried an alternative--the voluntary modification route. 
Unfortunately, it has not helped the vast majority of distressed 
homeowners.
  As of November 30, only 4 percent of struggling homeowners in the 
Treasury Department's Home Affordable Modification Program received 
permanent loan modifications--31,382 out of 728,000. This week, the 
Financial Services Committee heard testimony that this program is 
``destined to fail'' because it does not address negative equity.
  The Congressional Budget Office estimates that one million households 
could benefit from this measure, with no additional cost to taxpayers.
  So, it is time to take the next step. It is time to give homeowners 
the same rights as everyone else, and let them modify their mortgages 
in bankruptcy. It is time to help average citizens stay in their homes, 
just like we have helped big financial institutions.
  I strongly urge all Members to support this amendment.

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