[Congressional Record Volume 157, Number 36 (Thursday, March 10, 2011)]
[House]
[Pages H1691-H1704]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1410
Basically, what you have done on the bill is it says: effective on
the date of the act there are rescinded and permanently canceled all
unexpended balances remaining available as of such date of enactment of
the amounts made available under title I of the Emergency Economic
Stabilization Act. So you have cut out the top and you say it can't be
used for mortgages, and I left that language alone.
But then in that section you identify, specifically, mortgage letter
2010-23. And you say, nothing can be used for that. I am not trying to
turn over that apple cart.
[[Page H1692]]
However, when you go to section 3, you say that the Secretary of
Housing and Urban Development may not issue any regulation, any order,
any notice, or any mortgage letter based on, or substantially similar
to, such mortgage letter referred to above. Okay, so what you are
saying is no notice, no orders, no mortgage letters, no communications
on voluntary agreements between the bank, the lender, the servicer and
the homeowner. So you are prohibiting FHA from working out a voluntary
agreement with any of your constituents.
Mr. FRANK of Massachusetts. Reclaiming my time, the problem is the
ambiguity is substantially similar. It kills this program, but it bans
things that would be substantially similar so that innovator private
sector entities trying to do something would be deterred because no one
could tell them what substantially similar is.
I yield to the gentleman from Massachusetts.
Mr. LYNCH. Well, let me just say this: The idea here, it's a two-step
problem. One, the gentlewoman's bill would seek to eliminate voluntary
agreements. Okay, so that's a problem. So we are asking the FHA and the
homeowner and the lender and the servicer all to agree that this
mortgage should be modified and that the homeowner should be allowed to
remain in their home, which is a good thing. But for some reason you
don't want any of that, so you are eliminating all four of those
programs. That's a problem.
The underlying problem that we have here specific to this language is
compounded by the fact that you are eliminating all voluntary
agreements, not only the ones that you seek to eliminate in these four
voluntary programs.
Mr. FRANK of Massachusetts. I yield at this point to the gentlewoman
from Illinois (Mrs. Biggert) to respond.
Mrs. BIGGERT. Thank you. I think what we are doing here is to
terminate the mortgage letter which sets up the program and to make
sure that there won't be a substantially similar letter.
Mr. FRANK of Massachusetts. Reclaiming my time, because the
gentlewoman is simply not responding, we have the same general
rhetoric.
The point, as my friend has pointed out, is you were introducing an
ambiguity which is substantially similar so that people will be
deterred from further innovator activities.
I yield again to my friend from Massachusetts.
Mr. LYNCH. Thank you.
Madam Chair, the funding authorization you have already deleted in
section 2. So there is no funds and there is no authorization for FHA
to issue a letter in connection with a program that no longer exists.
So you have eliminated that.
But when you are going further, section 3 is saying, and we don't
want you even; we don't want you issuing a letter or a notice or an
order that is substantially similar to the one we just eliminated.
That's the problem, that you are taking the ability of the FHA to work
out voluntary agreements that, I think on the merits, for the people in
your district you would like to see occur, that are in good faith and
that are affecting homeowners.
The Acting CHAIR. The time of the gentleman has expired.
Mrs. MALONEY. I move to strike the last word.
The Acting CHAIR. The gentlewoman from New York is recognized for 5
minutes.
Mrs. MALONEY. Congresswoman Biggert, do you know how many underwater
mortgages there are in your home State?
Mrs. BIGGERT. No, I don't.
The Acting CHAIR. The gentlewoman from New York is advised to address
her remarks through the Chair.
Mrs. MALONEY. Reclaiming my time, there are 431,000 mortgages that
are underwater in the great State of Illinois where the residents would
be eligible to participate in this program that the Republican majority
is voting to terminate.
I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Massachusetts (Mr. Lynch).
The question was taken; and the Acting Chair announced that the noes
appeared to have it.
Mr. FRANK of Massachusetts. Madam Chair, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from
Massachusetts will be postponed.
Amendment No. 4 Offered by Mr. Paulsen
Mr. PAULSEN. Madam Chair, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 6, line 15, strike ``and''.
Page 6, line 16, before the period insert the following:
``, and Members and Veterans With Service-connected
Disabilities and Their Families''.
Page 7, line 11, strike ``or''.
Page 7, line 17, strike the period and insert ``; or''.
Page 7, after line 17, insert the following:
(D) such members and veterans of the Armed Forces who have
service-connected injuries, and survivors and dependents of
such members and veterans of the Armed Forces with such
injuries.
The Acting CHAIR. The gentleman from Minnesota is recognized for 5
minutes.
Mr. PAULSEN. Madam Chair, last summer I met with a woman whose
husband, who was born and raised in Eden Prairie, Minnesota, had died
in Afghanistan; and we discussed issues that she was facing as the
widow of a servicemember. One of the concerns she raised was absolutely
paying her mortgage, given all the changes and stresses that had taken
place in her life.
This conversation led me to introduce legislation last year, which
actually passed the House last fall, that directed the appropriate
agencies to take into account and consideration the special
circumstances of wounded servicemembers and widows of fallen soldiers
and their families in housing programs.
Along those lines, this amendment and my amendment today would add
military servicemembers and veterans who have service-related injuries,
as well as survivors and dependents of such individuals, to be included
in the study on the use of the FHA refinance program.
These families do face, often, new hardships. They may need
modification to their houses if the servicemember is now in a
wheelchair. They may have significant changes in their ability to move
around, as well as the skills they are able to perform, which could
have a significant impact on their livelihood.
It's my hope, Madam Chair, through this amendment we can get a better
understanding of how we can best provide for these families who have
made that service and sacrifice. I urge adoption of the amendment.
I yield back the balance of my time.
Mr. FRANK of Massachusetts. Madam Chair, I move to strike the last
word.
The Acting CHAIR. The gentleman from Massachusetts is recognized for
5 minutes.
Mr. FRANK of Massachusetts. Madam Chair, the gentleman from Texas
(Mr. Al Green) in the committee offered amendments that would have
provided some substantive protection to veterans.
My Republican colleagues neither wanted to provide help to the
veterans nor be caught not providing the help. So they came up with
some study amendments that would give them the appearance of being
concerned, but no reality. That was, unfortunately, adopted over Mr.
Green's objections and mine, but it's part of the bill.
This is in addition to what is largely a cosmetic amendment, and I
see no reason to object to it or prolong the debate, so I urge
everybody to vote for it.
I yield back the balance of my time.
Mrs. MALONEY. I move to strike the last word.
The Acting CHAIR. The gentlewoman from New York is recognized for 5
minutes.
Mrs. MALONEY. Congressman Paulsen----
The Acting CHAIR. The gentlewoman is advised to direct her remarks to
the Chair.
Mrs. MALONEY. I would like to inquire from Congressman Paulsen if he
is aware of how many mortgages are underwater in his home State, the
great State of Minnesota.
I yield to the gentleman from Minnesota.
Mr. PAULSEN. Congresswoman, I am not aware of the exact number. The
amendment applies, actually, for addition to the study. But I would be
happy if you would share that information.
[[Page H1693]]
Mrs. MALONEY. Reclaiming my time, I would like to point out to the
gentleman from Minnesota that there are over 90,000 homes, 90,000
homeowners who are underwater in the great State of Minnesota and that
could benefit if they meet the criteria in this important program that
the Republican majority is urging to be eliminated today.
I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Minnesota (Mr. Paulsen).
The amendment was agreed to.
Amendment No. 12 Offered by Mr. Inslee
Mr. INSLEE. I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 6, line 16, before the period insert ``and Replacement
Program''.
Page 6, line 19, before ``the extent'' insert ``(A)''.
Page 6, line 20, after ``section 2'' insert ``,
including''.
Page 6, line 21, before the period insert the following:
``, and (B) the need, and appropriate guidelines and
standards for, a mortgage insurance program of the Secretary
that (i) provides for loan modification involving a write-
down of the remaining principal balance on existing mortgages
on 1- to 4-family residences under which such principal
balance exceeds the appraised value of the mortgaged
residence, and (ii) serves the needs of covered homeowners
with such mortgages''.
Page 7, line 1, after ``paragraph (1)'' insert the
following: ``, setting forth the Secretary's determination of
the need for, and the appropriate guidelines and standards
for, the mortgage insurance program determined pursuant to
paragraph (1)(B),''.
Page 7, line 1, after ``best practices,'' insert
``including''.
Page 7, line 3, before the period insert the following:
``and to the mortgage insurance program identified and
described pursuant to paragraph (1)(B)''.
Page 7, after line 17, add the following:
(4) Implementation.--Upon the expiration of the 90-day
period beginning upon the submission to the Congress of the
report required under paragraph (2), the Secretary of Housing
and Urban Development shall implement the mortgage insurance
program described in such report pursuant to paragraph (1)(B)
through issuance of appropriate guidelines and standards set
forth in the report.
____
At the end of the bill, add the following new section:
SEC. 4. STUDY OF BORROWERS OTHERWISE ELIGIBLE FOR FHA
REFINANCE PROGRAM.
Not later than the expiration of the 90-day period
beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall conduct a
study, and submit to the Congress a report regarding the
results of such study, to determine the effects that
authorizing bankruptcy courts, in bankruptcy proceedings
under chapter 13 of title 11, United States Code, to reduce
the debt secured by a mortgage on the principal residence of
a debtor would have on mortgagors who, but for termination of
the FHA Refinance Program under this Act, would have
qualified for refinancing of a mortgage under such Program,
under the terms of such Program as in effect immediately
before the enactment of this Act.
{time} 1420
Mrs. BIGGERT. I reserve a point of order against this amendment.
The Acting CHAIR. A point of order is reserved.
The gentleman from Washington is recognized for 5 minutes.
Mr. INSLEE. Madam Chair, we know how dire the situation is for tens
of thousands of Americans with underwater mortgages who are making good
faith efforts to make the right decisions both for themselves and for
the lender. And we are very concerned that if this program prematurely
is destroyed, we will be yanking back a lifeline that Congress has sent
to these folks. And, of course, this is important because it's not just
the people who own these homes that are underwater right now that are
affected by the collapse in housing values, but all of us are because
that housing debacle has affected employment in the construction trades
and in the real estate industry broadly. We all have a stake in this
issue.
So what my amendment would do is to basically say that we want the
FHA, if, in fact, this situation moves forward like this bill is, that
they will conduct a study and essentially implement a substitute
program that will fix anything that needs fixing in this program to
achieve the ends that we ought to be able to have as our goal.
Now, the basic underlying theory of our amendment is simple. Before
you take away a lifeline from some American to solve a problem that
thousands are experiencing, come up with a substitute, come up with an
improvement, come up with an alternative. And that's what our amendment
simply says. If we're going to eliminate this program in its current
embodiment, let's come up with an alternative and have it implemented
in a way that we keep this lifeline out there.
Now, the reason we feel that this is important is that all too
frequently in this Congress we have seen the majority party remove
these solutions to programs and not replace it with an alternative.
We've seen this in health care, where they have wanted to remove a
health care program arguing it's ineffective or they think they have a
better program but not come up with a substitute to replace it. That's
not good enough. Americans deserve better.
The same thing with the Environmental Protection Agency. Today, my
friends in the majority party sought in the Energy and Commerce
Committee to eliminate protection against airborne pollutants that are
hurting human health, but they did not come up with any alternative to
solve that problem.
Now, we want to join in a bipartisan fashion, if there are
impediments or imperfections in this bill, to come up with a solution.
Let's not allow those Americans to be hanging out there without a
lifeline. My amendment would do that. And I would commend it to my
fellows.
Point of Order
Mrs. BIGGERT. Madam Chairman, I make a point of order against the
amendment because in my opinion it violates clause 7 of rule XVI, which
requires that an amendment be germane to the matter it's amending.
The Acting CHAIR. Does any Member wish to be heard on the point of
order?
The Chair recognizes the gentleman from Washington.
Mr. INSLEE. Thank you.
Briefly, I would hope that the Chair would consider a couple of
salient points. Number one, it is our intent, and I believe universal
intent, that by this amendment we don't intend to change the basic
nature of this program. It does apply this benefit to those homeowners
who are current on their mortgage obligations. We would intend that
that standard and condition would continue.
And I would point out to the Chair the language of our amendment
specifically says that this program would only be carried out under
``appropriate guidelines and standards.'' We think this solves that
problem. We seek our congressional intent to continue. We hope that the
Members will be able to be heard on this.
The Acting CHAIR. Does any other Member wish to be heard on the point
of order? If not, the Chair is prepared to rule.
The gentlewoman from Illinois makes the point of order that the
amendment offered by the gentleman from Washington is not germane.
The bill addresses repeal of a Federal Housing Administration program
that provides for refinancing of a specified set of mortgages.
One of the fundamental principles of germaneness is that the
amendment must relate to the subject matter of the underlying bill. The
bill is confined to a specific type of refinancing program. The
amendment seeks to address a different type of refinancing program, a
matter outside the ambit of the bill.
The amendment is therefore not germane. The point of order is
sustained.
Mr. LEWIS of Georgia. Madam Chair, I move to strike the last word.
The Acting CHAIR. The gentleman is recognized for 5 minutes.
Mr. LEWIS of Georgia. Madam Chair, I rise today for each and every
person who owns a home. I rise today for every American who has
struggled to pay their mortgage each month. I rise for every person who
has watched their home, their piece of the American Dream, slip away
because they lost their job through no fault of their own or because
they got cancer and are no longer able to work and pay their medical
bills.
I rise to condemn what these bills are trying to do today. Make no
mistake; repealing these programs will close the
[[Page H1694]]
door on the American Dream for more and more Americans.
Madam Chair, when I was a young boy, my family did not own a home. My
father was a sharecropper. My mother and father had to ``go without''
for years. They saved and they saved. They prayed. They waited. My
father could never get a mortgage. Mortgages were not available where
we lived. They were not available for families like mine. It's just the
way it was.
In 1944, my parents bought a house with three rooms and 110 acres
outside of a small town called Troy in rural Alabama. It cost us $300.
I couldn't imagine that much money changing hands at once. I look
around this Chamber, and I see some suits in this room that cost much
more than what my father paid. Up until the time she died, my mother
spoke about the day we moved in. How proud she was. It was a huge
achievement for us. It changed everything. That house, that land, it
was ours. Ours.
Looking back, I can't imagine what it would have been like to have
lost it all for reasons beyond my father's control--the harvest or the
weather or because it would fix someone else's bottom line.
Madam Chair, I know that buying a house is the biggest decision most
people will ever make, and it is the greatest source of pride. For most
people, their dream is their house. It was for me. When I bought my
house, I thought of my mother and my father. His house made it possible
for me to buy mine.
This American Dream is built from hard work. But that dream is also
made of bricks and mortar. It's a house, Madam Chair. It is a home. And
this Chamber is shutting the door on that house. They're locking the
door on the American Dream. These two bills today would end two new
programs that are helping struggling homeowners who have lost their job
through no fault of their own. To me, it is unthinkable.
Madam Chair, I strongly oppose H.R. 836 and H.R. 830. We must stand
up for the American homeowner. We must stand in their corner. We must
not walk away from them in their time of need.
I urge all of my colleagues to stand with me and defeat these bills.
Don't lock the door on the American Dream.
The Acting CHAIR. Are there any other amendments to section 3 of the
bill under consideration? If not, the Chair is prepared to entertain
other amendments.
Amendment No. 5 Offered by Ms. Waters
Ms. WATERS. Madam Chair, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of the bill, add the following new section:
SEC. 4. STUDY ON IMPACTS REQUIRED.
(a) In General.--Not later than 30 days after the date of
the enactment of this Act, the Secretary of Housing and Urban
Development shall, in consultation with the Secretary of the
Treasury, conduct a study on the negative impacts of
underwater mortgage loans on the housing market and the
economy of the United States and report to the Congress on
the findings of such study, including recommendations to the
Congress on how to mitigate such impacts.
(b) Underwater Mortgage Defined.--For purposes of this
section, the term ``underwater mortgage'' means a mortgage
loan on an owner-occupied residential property that has an
appraised value that is less than the outstanding obligation
under such mortgage loan.
Mrs. BIGGERT. Madam Chairman, I reserve a point of order against this
amendment.
The Acting CHAIR. A point of order is reserved.
The gentlewoman from California is recognized for 5 minutes.
Ms. WATERS. Madam Chair, my amendment would mandate that the
Secretary of Housing and Urban Development and the Secretary of the
Treasury conduct a study on the negative impacts of underwater mortgage
loans, or loans where the borrower owes more than the house is worth,
on the housing market and the economy of the United States and report
those findings to Congress. Importantly, the report would also include
recommendations to Congress on how to mitigate the effects of these
underwater mortgages.
{time} 1430
Before I go any further talking about these underwater mortgages, I
think it is extremely important for me to help everyone understand that
my friends on the opposite side of the aisle are moving to eliminate
all of the programs that we have worked so hard to develop; good,
strong public policy to assist homeowners of America in a number of
ways.
They are eliminating this FHA program that will assist with refinance
on homes that are underwater. They are eliminating the HAMP program
that we are going to hear more about. They are eliminating the
neighborhood stabilization program, commonly referred to as NSP. And
they are eliminating the program for homeowners who find themselves out
of a job who would be able to borrow and, of course, to pay back the
money that is loaned to them--they cannot afford to pay their mortgages
because of the loss of their job.
So while they are eliminating all of the programs that many of us
have worked so hard to develop--in the former Congress, I was the chair
of the Subcommittee on Housing and Community Opportunity, and so I know
these programs very well. Not only do I know these programs very well,
I understand very well what has happened here in America that has
caused homeowners to be in the situations they are in now.
We have a situation that occurred that created this crisis with the
subprime meltdown. We had loans that were initiated in this country
that were exotic loans, loans that were teaser loans, no documentation
loans, liar loans, loans that reset. People were encouraged to sign up
for mortgages that they did not understand.
Now we have millions of Americans, really through no fault of their
own, and I have said it once and I will say it again: That all of a
sudden homeowners didn't decide that they were going to default, that
somehow they weren't going to pay their bills. It certainly didn't
happen like that. It happened because of what I just alluded to, all of
the tricks and the fraud that were perpetrated on American homeowners
who were simply trying to live the American dream.
We don't have the numbers in committee any more or on this floor. My
friends on the opposite side of the aisle are in control. They have the
majority, and they are going to eliminate the programs. We have made
every argument possible that you can make in committee to try and hold
on to these programs. As you have seen on the floor today, we have the
gentlelady from New York reminding them how many homes they have
underwater. And, of course, they know because they are getting the
calls, just as we are getting the calls, from homeowners begging for
assistance. So while we won't be able to stop them, I'm trying to make
sure that at least we do this study so we can help bring to light what
has taken place and how these underwater mortgages pose a severe threat
to our economy.
If you owe more than your home is worth, you can't pick up and move
if you get a new job. You're stuck. That impedes our economic recovery.
Likewise, you can't move if you want to go attend school somewhere. And
you can't move in order to care for an elderly parent.
The chief economist for First American CoreLogic noted last month
that negative equity is a significant drag on both the housing market
and on economic growth. It is driving foreclosures and decreasing
mobility for millions of homeowners. Since we expect home prices to
slightly increase during 2010, negative equity will remain the dominant
issue in the housing and mortgage markets for some time to come. The
FHA refinance program is a modest step to address the problem of
underwater mortgages. This program would provide that if banks agree to
at least a 10 percent principal write-down for the borrower, the
borrower can refinance into a FHA loan. Only borrowers current on their
mortgages, not those in default, qualify for the program. So this study
will help people to understand the impact it is having. I ask for an
``aye'' vote on my amendment.
Point of Order
Mrs. BIGGERT. Madam Chair, I make a point of order against the
amendment because in my opinion it violates clause 7 of rule XVI, which
requires that an amendment be germane to the matter it is amending. It
is not germane to the bill because it expands the scope of the bill.
[[Page H1695]]
I ask for a ruling from the Chair.
The Acting CHAIR. Does any other Member wish to speak to the point of
order?
Ms. WATERS. Madam Chair, I move to strike the last word, I suppose.
If we terminate a program, we should understand the impacts of such a
termination, and so this is relevant.
The Acting CHAIR. The gentlewoman will suspend. The gentlewoman has
been recognized to speak to the point of order.
Ms. WATERS. This is the point of order.
The Acting CHAIR. The gentlewoman may proceed.
Ms. WATERS. The point of order indicates that this is not germane. I
am maintaining that this is germane because if we terminate a program,
we should understand the impact of such termination. I believe that
does speak to the point of order.
The Republicans say this program doesn't work. So our regulators
should suggest to Congress what they think will work. This is just a
study. This is not a new program or an extension of the FHA short
refinance program.
The Acting CHAIR. Does any other Member wish to speak to the point of
order? If not, the Chair is prepared to rule.
The gentlewoman from Illinois makes the point of order that the
amendment offered by the gentlewoman from California is not germane.
The bill addresses repeal of a Federal Housing Administration program
that provides for refinancing of a specified set of mortgages.
One of the fundamental principles of germaneness is that the
amendment must relate to the subject matter of the underlying bill. The
bill is confined to a specific type of refinancing program. The
amendment seeks to address mortgages more generally, a matter outside
the ambit of the bill.
The amendment is therefore not germane. The point of order is
sustained.
Amendment No. 15 Offered by Ms. Loretta Sanchez of California
Ms. LORETTA SANCHEZ of California. Madam Chairman, I have an
amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. USE OF FUNDING FOR FHA REFINANCE PROGRAM.
Effective on the date of the enactment of this Act, all
unexpended balances remaining available as of such date of
enactment of the amounts made available under title I of the
Emergency Economic Stabilization Act (Public Law 110-343; 12
U.S.C. 5211 et seq.) that have been allocated for use under
the FHA Refinance Program (pursuant to Mortgagee Letter 2010-
23 of the Secretary of Housing and Urban Development) of the
Making Home Affordable initiative of the Secretary of the
Treasury shall be available to the Secretary of Housing and
Urban Development for carrying out a program for insuring
mortgages made to refinance existing mortgages on 1- to 4-
family residences, in accordance with such guidelines and
standards as the Secretary shall issue, which shall provide
that under such program--
(1) the residence subject to a mortgage being refinanced
and to the insured refinancing mortgage shall be the
principal residence of the mortgagor;
(2) the mortgagor under the insured refinancing mortgage
shall have an annual family income not exceeding $180,000;
(3) the insured refinancing mortgage shall have a term to
maturity of 30 years;
(4) the insured refinancing mortgage shall bear interest at
a single rate of 4.0 percent annually for the entire term of
the mortgage; and
(5) the mortgagor under the insured refinancing mortgage
may not have failed to timely make any payments due under the
mortgage being refinanced.
Mrs. BIGGERT. Madam Chair, I reserve a point of order against this
amendment.
The Acting CHAIR. A point of order is reserved.
The gentlewoman from California is recognized for 5 minutes.
Ms. LORETTA SANCHEZ of California. Madam Chair, I rise today in
support of this amendment that I am sponsoring.
My amendment replaces the FHA Refinance Program Termination Act and
would allow the use of unexpended funds to create a program that will
allow qualifying homeowners to apply to refinance a 30-year mortgage at
4 percent as long as the mortgage they are refinancing is on their
primary home, that they are up to date on their mortgage, and that
their annual income, adjusted gross income, does not exceed $180,000.
People back home are hurting, and they are desperate to keep their
home. I know there are many who have lost their homes. There are some
who are behind on payments, and they haven't kept up with their
payments, but what about the people who have actually held onto their
home? They have actually paid. They have had to actually give up their
car, they are walking to work, they are taking the bus because they
understand how important it is for them to hold onto their house
because a house is not just a house. Your primary residence is your
home. It is where your kids are. It is where they find a stable life.
So while this program is not perfect--there is not a perfect program we
have come up with--we have tried to help people who have been losing
their houses, people who through no fault of their own, who have either
lost their jobs, have had to take a lesser job, who were swindled, who
were talked into loans they didn't understand what they were signing
because they were hit by the subprime lenders, and they are paying too
much, and people are sometimes paying in the double digits with respect
to their loan. Maybe they are at 10 percent or 9.5 percent 12 percent
on their loan. This program would actually say to those who somehow
have held on, we are going to refinance your primary home at 4 percent
because there are a lot of people who could do this and their payment
would come down significantly, but today, they can't refinance. To
refinance today on a 30-year loan is 4.9 percent. There are a lot of
people who are paying 8 percent. It means a lot. It could be anywhere
between $2 and $2,000 in their payment a month. But they can't qualify.
They don't have the chunk of money they need, their home is underwater,
et cetera.
{time} 1440
So this is a very important thing we could do. Let's take the money.
Let's take that money that we have not spent on this program and let's
put it to help the people who have done the right thing, the people
who, no matter what, have continued to pay on their loan, because there
are many of them out there.
I would hope that we could find a compromise, that we could find a
way in which we can keep people in their homes. No program is perfect,
but I think we have the opportunity to do the right thing, Madam Chair.
I yield back the balance of my time.
Point of Order
Mrs. BIGGERT. Madam Chairman, I make a point of order against this
amendment because it violates clause 10 of rule XXI as it has the net
effect of increasing mandatory spending within the time period set
forth in the rule.
The Acting CHAIR. Does any other Member wish to speak to the point of
order?
The Chair recognizes the gentlewoman from California.
Ms. LORETTA SANCHEZ of California. Madam Chair, this is about
eliminating a program. I understand that those people who are behind on
their payments, you're just going to let them go. You're just going to
let them lose their home. Then they're going to have a hard time
finding an apartment. I understand that. But this is about helping the
people who truly, the middle class, the lower-income class, who have a
home, who need to hold onto that home.
I do believe that this is germane to the underlying bill. I
respectfully request that we consider this amendment.
The Acting CHAIR. Does any other Member wish to speak to the point of
order? If not, the Chair is prepared to rule.
The gentlewoman from Illinois makes a point of order that the
amendment offered by the gentlewoman from California violates clause 10
of rule XXI by proposing an increase in mandatory spending over a
relevant period of time.
Pursuant to clause 10 of rule XXI and clause 4 of rule XXIX, the
Chair is authoritatively guided by estimates from the chair of the
Committee on the Budget that the net effect of the provisions in the
amendment would increase mandatory spending over a relevant period of
time as compared to the bill.
[[Page H1696]]
Accordingly, the point of order is sustained and the amendment is not
in order.
Amendment No. 14 Offered by Mr. Inslee
Mr. INSLEE. I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of the bill, add the following new section:
SEC. 4. ENFORCEMENT OF FORECLOSURE LAWS.
The Attorney General of the United States, in consultation
and coordination with the Secretary of the Treasury, the
Federal Deposit Insurance Corporation, the Director of the
Federal Housing Finance Agency, the Secretary of Housing and
Urban Development, the Board of Governors of the Federal
Reserve System, the Director of the Bureau of Consumer
Financial Protection of the Federal Reserve System, any other
appropriate Federal banking regulatory agencies, and the
Attorneys General of the States, shall pursue, to the fullest
extent of the law, criminal prosecution of directors and
officers of any financial institutions that the Attorney
General, in such consultation and coordination, determines
have failed to comply with State laws relating to foreclosure
of mortgages on residential real property and shall provide
appropriate assistance to such State Attorneys General in
such prosecutions.
Mrs. BIGGERT. Madam Chairman, I reserve a point of order against this
amendment.
The Acting CHAIR. A point of order is reserved.
The gentleman from Washington is recognized for 5 minutes.
Mr. INSLEE. Thank you very much.
Madam Chair, one thing that I think there is universal anger about,
Republicans, Democrats and independents alike in this country, is the
lack of responsibility that has been shown, criminal responsibility,
for the huge malfeasance and criminality that got us into this economic
pickle that we are in. To my knowledge, there has been not one person
go to jail as a result of the economic collapse precipitated by the
shenanigans and outright criminality in the highest financial places in
the land. All Americans, I think, are very angry, with justifiable
reasons, about that. If you read any of the books about the collapse on
Wall Street, you will share that anger, if you read any of those books.
We do not want to see that replicated in this scandal regarding the
mortgage servicing situation. We are now advised that there are
multiple cases of people knowingly signing affidavits that were false.
We are told there are numerous occasions of this robo-signing
situation. These nefarious acts have resulted in losses by Americans
that should not have happened.
We want to send a message, on a bipartisan basis, that the criminal
laws need to be respected. My amendment would simply call upon the
attorneys general, both Federal and State, to prosecute, as
appropriate, these criminal violations. The amendment does not change
the responsibility under the criminal statutes for any officers or
directors if they are not personally responsible for these wrongful
acts. There's no criminal liability. But we do think where there were
violations of these criminal statutes, they ought to be prosecuted.
This Nation has been brought to the brink of financial ruin because
of many, many instances of violation of these standards. The least we
can ask is that we prosecute these cases where it is appropriate.
We think it's the right thing for us to do on a bipartisan basis to
make that statement today. I hope that Members will join me in making
that statement and make sure justice in fact is meted out here where it
has not been in other instances.
I yield back the balance of my time.
Point of Order
Mrs. BIGGERT. Madam Chairman, I make a point of order against the
amendment because, in my opinion, it violates clause 7 of rule XVI,
which requires that an amendment be germane to the matter it is
amending. It is not germane to the bill because it is outside the scope
of the bill.
The Acting CHAIR. Does any other Member wish to speak to the point of
order?
The Chair recognizes the gentlewoman from California.
Ms. WATERS. I do think this amendment is germane, for a number of
reasons. The gentleman talked about the fact that this country was
almost brought to the brink of total disaster because of this subprime
meltdown. He pointed to things, that have already been identified, that
we can put squarely on the shoulders of the servicers who are
responsible for the management of these mortgages after they have been
packaged, securitized, and then sent on their way to be collected on.
This gentleman is talking about the fact that many of these servicers
when they are trying to collect on these mortgages can see that fraud
has taken place, but they do nothing about it. They can see that
amendments have been slipped in that the homeowners did not know about.
They can see that sometimes the signature does not even belong to the
homeowner, but they continue to try and collect on these mortgages.
I think that this amendment is germane. I would ask that the Chair
rule in favor of this amendment. It is time somebody paid a price for
what has been done to the American public.
The Acting CHAIR. Does any other Member wish to speak to the point of
order? If not, the Chair is prepared to rule.
The gentlewoman from Illinois makes a point of order that the
amendment offered by the gentleman from Washington is not germane.
The bill addresses repeal of a Federal Housing Administration program
that provides for refinancing of a specified set of mortgages.
One of the fundamental principles of germaneness is that the
amendment relate to the subject matter of the underlying bill. The bill
is confined to a specific type of refinancing program. The amendment
seeks to address foreclosures generally, a matter outside the confines
of the subject addressed by the bill.
The amendment is therefore not germane. The point of order is
sustained.
Ms. HIRONO. I move to strike the last word.
The Acting CHAIR. The gentlewoman from Hawaii is recognized for 5
minutes.
Ms. HIRONO. Madam Chair, an amendment offered earlier directing the
Secretary of the Department of Housing and Urban Development (HUD) and
the Secretary of the Treasury to study the negative impacts of
underwater mortgages on the housing market and on the U.S. economy and
to report the findings of this study to Congress, including
recommendations on how to mitigate the effects of these mortgages,
makes eminent sense to me.
About 12 million to 15 million homeowners, nearly one quarter of
homeowners in this country, are currently underwater on their
mortgages, meaning that they owe more on their mortgages than their
homes are worth. These borrowers are diligently making their mortgage
payments but need some kind of lifeline to reduce their debt burden.
We all agree that we need to look at ways to cut government spending
to address our country's fiscal crisis, but what is the purpose of this
underlying bill? Why are my colleagues on the other side of the aisle
trying to end programs that were established to assist families
suffering from the foreclosure crisis without offering any plan or
remedy to help the millions of Americans who are trying to stay in
their homes?
Families in every single one of our congressional districts are
desperately seeking help to stay in their homes, the American Dream.
Last year, I met with an owner of a car dealership in Kihei, Maui. This
constituent had a successful business until the economic downturn
reduced the number of her car sales. Increasingly, former customers of
hers were returning to her dealership to return the cars that they had
purchased from her, handing back their keys because they could no
longer afford to make their car payments.
This car dealer eventually found herself in dire straits, so much so
that her lender wanted to put her dream home up for a short sale. She
didn't understand why the lender was only considering a short sale and
didn't want to work with her to help her keep her house.
{time} 1450
It was only when my office contacted the lender on her behalf that
she was able to receive a forbearance on a portion of the principle and
get a permanent modification. Sadly, stories like hers are commonplace
these days.
[[Page H1697]]
The Federal foreclosure mitigation programs, which unfortunately have
not helped as many homeowners as we would like, still provide a
lifeline. Without these programs, many more lenders would be pursuing
short sales and foreclosures rather than trying to help meet homeowners
halfway in helping them keep their homes.
The FHA Refinance Program, also known as the FHA Short Refinance
Option, assists underwater borrowers by facilitating voluntary mortgage
principal write-downs and refinancing the loans into a new stable FHA-
insured mortgage, thereby enabling borrows to have a reduced monthly
payment and a mortgage that is more aligned with actual property
values.
FHA just started implementing this program a few months ago; we need
to give the agency time to get it off the ground. We should also focus
on what can be done to make the programs more effective so that the
maximum number of underwater borrowers who are eligible for the program
can benefit.
Instead of coming up with new initiatives to assist thousands of
homeowners or working to improve existing foreclosure mitigation
programs, bills like this will only serve to destabilize an already
fragile housing market and further delay our economic recovery. With
bills like this, the House majority continues to turn their backs on
the middle class families and our country. Let's focus on what can be
done now to stabilize the housing market, create jobs, and get the
economy back on track.
I urge my colleagues to vote against the underlying bill.
Madam Chair, I yield back the balance of my time.
Amendment No. 8 Offered by Mr. Holt
Mr. HOLT. Madam Chair, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of the bill, add the following:
SEC. 4. MODIFICATION OF REAL PROPERTY STANDARD DEDUCTION.
(a) Extension.--Subparagraph (C) of section 63(c)(1) of the
Internal Revenue Code of 1986 is amended by striking ``in
2008 or 2009'' and inserting ``after December 31, 2007, and
before January 1, 2015''.
(b) Adjustments for Inflation.--Subparagraph (B) of section
63(c)(4) of such Code is amended by striking ``and'' at the
end of clause (i), by striking the period at the end of
clause (ii) and inserting ``, and'', and by inserting after
clause (ii) the following:
``(iii) `calendar year 2010' in the case of dollar amounts
contained in paragraph (7)(B).''.
(c) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years beginning after December 31, 2009.
(2) Inflation adjustment.--The amendments made by
subsection (b) shall apply to taxable years beginning after
December 31, 2011.
Mrs. BIGGERT. Madam Chair, I reserve a point of order against this
amendment.
The Acting CHAIR. A point of order is reserved.
The gentleman from New Jersey is recognized for 5 minutes.
Mr. HOLT. Madam Chair, instead of focusing on job creation,
innovation, retirement security or fair taxes, today we're considering
legislation that would terminate a program that has the potential to
help struggling homeowners stay in their homes. We are not here to
debate fixing the program or to consider replacing it with a more
effective alternative; but, rather, we're here to end the program that
is only a few months old, to declare it a failure and go home. This is
not good government. It will not help the middle class. This is not
what my constituents sent me to Washington to do.
New Jerseyans, as so many around the country, are burdened by high
property taxes. While we allow individuals who itemize their Federal
taxes to deduct State and local taxes, many non-itemizers--particularly
retirees on fixed incomes--feel the impact of high rates. The amendment
before us that I present would provide real help to millions of
homeowners, especially senior citizens, across the country and, yes, in
central New Jersey, my district.
Specifically, my amendment would renew for 5 years the property tax
deduction for American homeowners who don't itemize on their Federal
taxes. It would allow single filers to deduct $500 and joint filers to
deduct $1,000 on top of the standard deduction and index these
additional deductions for inflation. This property tax provision--based
on legislation that I wrote and was signed into law by former President
Bush in 2008 and was extended through the 2009 tax year--would continue
that.
Unfortunately, although the extension of this tax credit for 2010 was
passed by this House, it failed to become law. So that is why on the
first day of this Congress I introduced the Universal Homeowners Tax
Relief Act. And with this amendment, we have the opportunity to pass my
legislation to provide an estimated 30 million people nationwide, and
600,000 in New Jersey, with a few extra hundred dollars that I'm sure
they could use. In these uncertain economic times, it is no small
matter. And unlike the bill before us today, my amendment would provide
real help for American homeowners.
I urge passage of the amendment.
Point of Order
Mrs. BIGGERT. Madam Chairman, I make a point of order against this
amendment because in my opinion it violates clause 7 of rule XVI, which
requires that an amendment be germane to the matter it is amending. And
it is not germane to the bill because it's outside the scope of the
bill.
The Acting CHAIR. Does any other Member wish to be heard on the point
of order?
The Chair recognizes the gentleman from New Jersey.
Mr. HOLT. Madam Chair, I recognize that under the structure of this
bill this amendment is not in order. I only say it should be.
The Acting CHAIR. Does any other Member wish to speak to the point of
order?
The Chair recognizes the gentlewoman from California.
Ms. WATERS. Thank you very much.
Madam Chair, I rise to support the amendment. I'm opposed to the
point of order. I think it is absolutely germane. Not only do we have a
bill before us that will eliminate taxpayers' ability to have their
homes that are underwater refinanced; this also impacts their taxes.
They will continue to have to be taxed on those homes at the same rate.
And so here we have before us the Universal Homeowner Tax Relief Act
that would impact 30 million Americans nationwide.
And I must add that if we can, in this House and in this Congress,
give tax breaks to the richest 1 percent of Americans in the way that
we have done, certainly we can support these homeowners who are
underwater, these homeowners who have been tricked into mortgages that
they didn't understand, these homeowners who are the victims of fraud.
And I think this is germane.
The Acting CHAIR. The gentlewoman from California must confine her
remarks to the point of order.
Does any other Member wish to speak to the point of order. If not,
the Chair is prepared to rule.
The gentlewoman from Illinois makes the point of order that the
amendment offered by the gentleman from New Jersey is not germane.
The bill addresses repeal of a Federal Housing Administration program
that provides for refinancing of a specified set of mortgages.
One of the fundamental principles of germaneness is that the
amendment must confine itself to the jurisdiction of the committees
represented in the underlying bill. The bill was referred to and
reported by the Committee on Financial Services. The amendment proposes
a direct amendment to the Internal Revenue Code, a matter within the
jurisdiction of the Committee on Ways and Means.
The amendment is therefore not germane. The point of order is
sustained.
Amendment No. 7 Offered by Mr. Garamendi
Mr. GARAMENDI. Madam Chair, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of the bill, add the following new section:
SEC. 4. TREATMENT OF BONUSES FOR FINANCIAL SECTOR EMPLOYEES.
The Federal regulatory agencies for banking and financial
institutions and for securities regulation shall jointly
issue regulations that--
(1) require all new employees of any institution, company,
or entity regulated by such a regulatory agency, upon hiring,
to sign a contract stipulating that any bonus income provided
to such employee will be paid in securities or obligations
that such institution,
[[Page H1698]]
company, or entity creates or deals in in its regular course
of business;
(2) require that any such bonuses paid shall be held in
escrow for such period as may be necessary to determine
whether the such securities or obligations created or dealt
with by such institution, company, or entity are of
substandard quality or cannot be readily identified as an
asset or a liability;
(3) require such escrow accounts to be portable so that an
employee may change jobs without hindrance; and
(4) prohibit use of any such bonuses to hedge against
future losses.
Mrs. BIGGERT. Madam Chair, I reserve a point of order against this
amendment.
The Acting CHAIR. A point of order is reserved.
The gentleman from California is recognized for 5 minutes.
Mr. GARAMENDI. Madam Chair, 10 weeks ago on this floor there was
great celebration by our colleagues in the Republican Party as they
took control of this House, and there were many sermons given to all of
us by the Members in the majority party about the need to listen to
Americans. I suggest we do that at this moment as we consider this
bill.
Madam Chair, 10,780,236 American families are crying out for help. We
should be listening to them.
I know the gentlewoman from Illinois has a big heart, and she knows
that 430,000 of the homeowners in Illinois are crying out for relief.
And I'm certain, Madam Chairman, that the author of this bill, the
gentleman from Alabama, is well aware that in his State 35,000
homeowners are crying out for relief. And I'm certain that all of the
Members of the Republican Party are listening to the 10,780,236
families in America that are crying out for relief. I can assure you
the Democrats are listening.
My amendment, Madam Chair, is one that goes to one of the three
reasons why they are crying out for relief.
{time} 1500
There was no regulation imposed during the years 2001 to 2009. That
was one problem. We attempted to address that with the Dodd-Frank law
that's now in place.
The second reason was irresponsibility; and certainly some of those
homeowners who are crying out for relief were irresponsible, and
certainly some of those who lost their homes already that are crying
out for relief were irresponsible. But the big irresponsibility were
the bankers in this Nation. They took advantage of millions upon
millions of homeowners and engaged in irresponsible activity.
The third item is where my amendment goes, and that is to Wall Street
greed. We know, from the commission that was assigned the
responsibility of looking at why the great crash occurred, we know from
that report that greed was the underlying motivation for Wall Street.
My amendment goes to that greed.
In the future, not in the past--and some of my colleagues have spoken
to the need for criminal action, which is also part of that report done
by the commission--this goes to the future. This amendment goes to the
future and says for those in Wall Street, the high and the mighty that
get the huge bonuses, most of whom were just in the newspaper this
week, that their bonuses should be in the stock of the company in which
they are operating and that those bonuses be held in an escrow account
for a period of time so that either the good or the bad effect of their
action would be known and so that they could not take immediate benefit
from their irresponsible actions.
This amendment would put a damper on Wall Street greed. This
amendment is necessary to put a damper on Wall Street greed, and it
goes directly to one of the reasons why this bill is before us. This
bill is before us, I think in an inappropriate way, to deal with the
housing crisis. The housing crisis was caused in part by Wall Street
greed. We ought to be addressing that. That's what this amendment does,
by withholding from immediate benefit those members of Wall Street who
have created the crisis in the past and who may very well be in the
process of creating tomorrow's crisis.
I ask for the support of this amendment.
Point of Order
Mrs. BIGGERT. Madam Chairman, I make a point of order against the
amendment of my good friend and colleague because in my opinion it
violates clause 7 of rule XVI, which requires that an amendment be
germane to the matter it is amending. It is not germane to the bill
because it is outside the scope of the bill.
The Acting CHAIR. Does any other Member wish to speak to the point of
order?
The Chair recognizes the gentleman from California.
Mr. GARAMENDI. I think that it's necessary when we take up a bill
that would eliminate a law that is intended to help 10,780,326
homeowners that we look to the underlying reason why the problem
exists. This amendment does that.
We ought not be using artificial rules that prevent us from the
underlying problem, allowing those rules to stop us from taking up the
real problem.
I oppose the proposal to rule this out of order.
The Acting CHAIR. Does any other Member seek to speak to the point of
order? If not, the Chair is prepared to rule.
The gentlewoman from Illinois makes the point of order that the
amendment offered by the gentleman from California is not germane.
The bill addresses repeal of a Federal Housing Administration program
that provides for refinancing of a specified set of mortgages.
One of the fundamental principles of germaneness is that the
amendment must relate to the subject matter of the underlying bill. The
bill is confined to a specific type of refinancing program. The
amendment seeks to address regulation of the financial industry, a
matter outside the confines of the subject addressed by the bill.
The amendment is therefore not germane. The point of order is
sustained.
Mr. BACHUS. Madam Chair, I move to strike the last word.
The Acting CHAIR. The gentleman from Alabama is recognized for 5
minutes.
Mr. BACHUS. Madam Chair, there seems to be some confusion on what the
underlying bill does and what the amendments are trying to accomplish.
In fact, in certain cases, it's quite evident that some of my
colleagues don't understand the bill.
This bill authorizes $8 billion to go towards the FHA refinance plan.
It has already disbursed $50 million. Now we're hearing these claims of
10 million and 11 million homeowners. There are probably closer to 12
million homeowners that are underwater than 11. I think the numbers are
understated. So let's assume 12 million.
This Federal program that we've disbursed $50 million to, how many
American families have had their mortgages refinanced? Forty-two.
Now, who refinanced those? Who paid for that? Was it the lenders who
loaned the money? No. Was it the borrowers who borrowed the money? No.
It was these children, because it was taxpayer money.
Now you say they're not taxpayers. No, but they're going to have to
pay this back because we're spending $8 billion more every day than
we're taking in in revenue.
It was announced earlier this week--I think the American people, and
I don't blame them, don't want to really put their arms around this--
but we just announced a deficit for the month of February, 28 days,
that was more than the deficit 4 years ago for the entire year. We're
hemorrhaging red ink.
Are we better off than our parents? Most of us are. Are these
children going to be better off than we are? Not if we don't start
cutting spending. And the American people, those who are parents and
grandparents, are crying out for this Congress to address this. And
that's what we're on this floor today to do.
Now, if I were one of the 12 million homeowners who was underwater, I
might say, Why those 42? But if I were the taxpayers, I would say, Why
are you taking money from me that we have to borrow from other
countries--42 cents out of every dollar that we're putting into this
program--why are you paying this mortgage down? Isn't that the lender--
if a loan gets in trouble, is it up to the taxpayers to bail that
lender out?
Someone mentioned Bank of America. Somebody mentioned Citibank. If I
were Citibank or Bank of America and someone who was making their
payments who was underwater who may
[[Page H1699]]
walk off, yeah, I'd say if the taxpayers will come in and take that
obligation off my hands, I would love that.
My district, the average home is worth $212,000. And it's the
highest--one of the highest in the State. And actually when I say that,
let me say the community I live in, which is one of the more--it's
above average in income.
But the average loan here that people borrowed was $313,000--the loan
itself. That's quite a loan. And to say that the taxpayers need to pay
that mortgage down makes no sense when these are the children, this is
the generation that's going to have to pay it back.
We need to get serious. We need to get out pictures of our children
and our grandchildren and we need to say, Do we really need to come to
the rescue of these banks when they've overextended loans?
{time} 1510
How about all of those Americans who are making their payments and
didn't buy a house and are not underwater? Should you ask those
Americans to pay to banks money that they didn't obligate themselves
to? The answer is ``no.'' ``No'' to more government spending.
Mr. GARAMENDI. Madam Chair, I move to strike the last word.
The Acting CHAIR. The gentleman from California is recognized for 5
minutes.
Mr. GARAMENDI. Yes, we ought to look to the children. Last Sunday on
``60 Minutes'' was a report about our children in America today.
Twenty-five percent of our children in America today are hungry, and
many of them are homeless because their parents have lost their homes.
Forty-two families. Yes, this program hasn't yet kicked into its full
potential. Forty-two families are in their homes today, and those
children are not out on the street homeless.
Listen to America. Listen to the 25 percent of children in America
today that are hungry, and a large percentage of them are homeless.
Listen to their cry. Listen to them. Yes, we have an obligation as good
citizens of this Nation to see to it that our neighborhoods, even if
they are the high-end neighborhoods in Alabama, that those problems are
addressed.
Ten months ago, the new majority took this floor and they said,
Listen, listen to Americans that want jobs. Not one job bill has passed
this House. The only bill that's passed this House that dealt with jobs
was H.R. 1, the continuing resolution, that destroyed 700,000 jobs and
will put more of those children homeless, will destroy more families.
Yes, we ought to be listening to the generations ahead of us. But if we
do not listen to today's problems, those problems in the future will
only be worse.
And $8 billion, yes, that's a lot of money. But it happens to be 8
percent of what we spend every year in the Afghan war. Get our
priorities straight here on this floor. You bet I'm worried about the
children of today. But 25 percent of Americans' children are hungry,
and a large percentage of them are homeless because their parents have
been unable to meet the mortgage commitments.
This program is one of four that is going to be terminated by the
Republican majority.
So what is it that you are offering those children? The children of
today, what is it that you are offering them? The opportunity to be
homeless. That's what you're offering.
Come to this floor and talk to me about tomorrow's generation. Yes,
do that. And that's my concern also. But I'm concerned about those that
are homeless and hungry today.
So don't eliminate this program. Make it work. Don't eliminate the
other three programs that are an effort to try to keep people in their
homes so that they don't go homeless.
Madam Chair, I know my colleagues on the Republican side care about
the children of America, today's children. Why they would put four
bills forward this week and next week that eliminate the opportunity
for those parents to stay in their home I do not understand. We need
compassion. We need to be aware of the deficit. We need to make
choices. If our choice is to force more families to be homeless, that's
the wrong choice.
I yield back the balance of my time.
Ms. WATERS. Madam Chair, I move to strike the last word.
The Acting CHAIR. The gentlewoman from California is recognized for 5
minutes.
Ms. WATERS. Madam Chair, I rise because I want to make sure that the
chair of our committee, who just took the floor, understands that we
understand the bill. When our chairman first took the floor to talk
about what this bill is and what it is not, he said he did not think
that we really understood what the bill was all about. I would like to
assure you that the Members on this side of the aisle understand this
legislation. I would like to assure you that those of us who work on
the Financial Services Committee, who put these bills into operation,
who organized these bills, who presented these bills, who got these
bills passed into law to help homeowners, understand what is now
happening to them.
We understand that the bill before us would eliminate this program.
This is an FHA program that's designed to provide refinance
opportunities for those homes that are underwater.
What do we mean when we say ``underwater''? We mean that when middle
class homeowners, hardworking citizens went and signed for that
mortgage where they were paying $250,000, $300,000, $400,000 for a
home, they signed that mortgage, that was supposed to be the value of
that home. That's what it was assessed at at the time. That was what it
is supposed to be worth.
Now, because of this crisis that we are in, the subprime meltdown
that we are in, this economic difficulty, these homes have lost their
value. They are no longer the homes that they signed that mortgage for.
The value has changed. That $400,000 home, that $300,000 home that
middle class citizens were now buying is 35 percent less, or 50 percent
less in some areas.
Mr. BACHUS. Will the gentlewoman yield?
Ms. WATERS. No, I will not yield.
These homeowners are saying, Will you please help me? Will you please
do something about the fact that I am working every day, paying a
mortgage amount for a home that's 35 to 50 percent less than what I
signed up for? Will my government please help me? This is not fair.
They're simply saying, Can't you do something? And we said, Yes. We put
into play legislation, FHA, that would help to refinance these homes.
Let's get the amounts right.
I now yield to the gentleman from Alabama, because I don't want to
deny my friend the opportunity to have his say.
Mr. BACHUS. Would the gentlelady tell the Members, when you write
that check to help them with their underwater home, that check goes to
Bank of America. That check goes to Citibank. That check goes to just
fill in the bank, fill in the mortgage company. It goes to whoever
loaned the money. It doesn't go to the homeowner. Are they benefited?
Yes. And tell the Members of this body who pays for that check. We do.
The American people.
Ms. WATERS. Reclaiming my time, I am focused on the homeowner who was
supposed to be protected by the regulators that have been appointed and
given the jobs of regulation so that they could make sure that our
consumers are being treated fairly. We failed them. We let them down.
We allowed them to get into mortgages where fraud was quite evident. We
did not do the job. And so now they have these homes that are
underwater, and they're saying, Help us. And we did. That's what this
FHA legislation would have done, helped to refinance so that they could
lower their mortgage payments.
Now, my friends on the opposite side of the aisle are saying to the
taxpayers and to the homeowners, No, we're not going to help you. We
know your home is underwater. We know this information. We know what
the servicers have done to you. We know that you are working every day
to pay a mortgage for a home that you thought was worth an amount that
is no longer so.
So we are saying please don't do that. We're saying please don't do
that. Don't strip the homeowners of this opportunity to refinance this
home.
In addition to stripping the homeowners of this opportunity, the
other programs that you are going to hear about, the other three
programs, the HAMP program, the NSP program, the
[[Page H1700]]
program for homeowners who have lost their jobs who simply want a loan,
we're saying no to all of this. We're saying, No, homeowners, we're not
going to help you.
I yield back the balance of my time.
{time} 1520
Amendment No. 6 Offered by Ms. Waters
Ms. WATERS. Madam Chair, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of the bill, add the following new section:
SEC. 4. PUBLICATION OF MEMBER AVAILABILITY FOR ASSISTANCE.
Not later than 5 days after the date of the enactment of
this Act, the Secretary of Housing and Urban Development
shall publish to its Website on the World Wide Web in a
prominent location, large point font, and boldface type the
following statement: ``The FHA Short Refinance Program, which
would have provided borrowers who are current on their
mortgage but owe more than their home is worth with the
ability to refinance into an FHA loan with better terms, has
been terminated. If you owe more on your mortgage than your
home is worth, please contact your Member of Congress for
assistance.''.
Ms. WATERS. Madam Chair, I ask unanimous consent that amendment No. 6
be modified with the modification that is at the desk.
The Acting CHAIR. The Clerk will report the modification.
The Clerk read as follows:
Modification to amendment No. 6 offered by Ms. Waters:
Strike all after the section heading and insert the
following:
Not later than 5 days after the date of enactment of this
Act, the Secretary of Housing and Urban Development shall
publish to its website on the World Wide Web in a prominent
location, large point font, and boldface type the following
statement: ``The FHA Short Refinance Program, which was
intended to provide borrowers with refinance opportunities,
has been terminated. If you are having trouble paying your
mortgage and need help contacting your lender or servicer for
purposes of negotiating or acquiring a loan modification,
please contact your Member of Congress to assist you in
contacting your lender or servicer for the purpose of
negotiating or acquiring a loan modification.''
The Acting CHAIR. Is there objection to the modification?
Without objection, the amendment is modified.
There was no objection.
The Acting CHAIR. The gentlewoman from California is recognized for 5
minutes.
Ms. WATERS. Madam Chair, this amendment that I've worked on with my
colleagues on the opposite side of the aisle is simply about
transparency. It is simply about making ourselves available to the
homeowners who are trying to get some help because they are under
water. This amendment would simply say that the program is no longer in
existence and that you may call us to help you to get to your lender or
to get to your servicer in some way.
It is certainly not what I would prefer to have to do, but I
understand we're going to lose. The Members on the opposite side of the
aisle have made up their minds, and they have decided that this is
important and that this is what they're going to do.
So I would simply like our citizens to know that this program that
they may have started to hear about is no longer in existence and that,
if they call us, we will agree that we will try and help them, in some
modest way, to get to their servicers or to their lenders.
I yield back the balance of my time.
Mr. BACHUS. Madam Chair, I move to strike the last word.
The Acting CHAIR. The gentleman from Alabama is recognized for 5
minutes.
Mr. BACHUS. Let me say this: I would prefer that this amendment
notify all Americans, particularly taxpayers, that we are stopping a
program that authorizes $8 billion worth of spending.
Having said that, I think this is a good amendment. I know there may
be Members who say they don't want to be contacted, but I will tell you
this: People do call us from time to time, and they say, I'm having
trouble with paying my mortgage. I'm facing foreclosure, and I can't
get in touch with my lender or my servicer, and I'm not sure who I
should talk to.
We put them in communication many times with the servicer or the
lender. We go further and actually help some of them with their
applications. On 18 occasions this last year, we helped citizens with
applications to lenders for modifications.
I think it's a good service, particularly with the recession we have
now. I think it's a far, far better approach than a government program
that uses taxpayer dollars, because we are contacting the lender or the
servicer, and that is who ought to talk to the borrower. That's who
could have an obligation or who has an interest in working it out. On
almost every occasion with the mortgages, it is in the interest of the
borrower and the lender to work it out.
Ms. WATERS. Will the gentleman yield?
Mr. BACHUS. I yield to the gentlewoman from California.
Ms. WATERS. Thank you so much.
First of all, Mr. Chairman, I would like to thank you for your
cooperation on this amendment. I know that there are other words that
you would, perhaps, use to explain to the homeowner or to the citizen
your point of view; but you did work with me on this, and you thought
that this kind of transparency was good.
I do commend you because I know that you have worked directly with
some of your constituents. We found out, as we talked with you, that
you had helped 18 people with loan modifications and that you were
willing to contact the servicers. As you know, there are those who tell
us that we shouldn't be doing any of this, but I think you and I agree
that we should offer some assistance to the homeowners who contact us.
I would like to thank you for that.
Mr. BACHUS. Thank you.
If I continue to have time, let me say this in closing: I do want to
caution Members that it is not an obligation of Congress or of Members
of Congress--and I think Ms. Waters would agree--to intervene and to
suggest to the lenders that they do anything other than give due
consideration. We simply put them in communication. Now, we will help
them with the applications, but I think it is important, in all our
dealings, that we do not try to intervene in legal obligations or in
any way appear to coerce or influence that outcome.
I think this is a very good amendment, and I would encourage Members
to support it. There are also VA programs and FHA programs that we can
put borrowers in touch with. This, I believe, is an amendment I will
support.
Madam Chair, I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment, as modified,
offered by the gentlewoman from California (Ms. Waters).
The question was taken; and the Acting Chair announced that the ayes
appeared to have it.
Mrs. BIGGERT. Madam Chair, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment, as modified, offered by the gentlewoman
from California will be postponed.
Announcement by the Acting Chair
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, proceedings
will now resume on those amendments printed in the Congressional Record
on which further proceedings were postponed, in the following order:
Amendment No. 3 by Mr. Lynch of Massachusetts.
Amendment No. 6 by Ms. Waters of California, as modified.
The Chair will reduce to 5 minutes the time for the second electronic
vote in this series.
Amendment No. 3 Offered by Mr. Lynch
The Acting CHAIR. The unfinished business is the demand for a
recorded vote on the amendment offered by the gentleman from
Massachusetts (Mr. Lynch) on which further proceedings were postponed
and on which the noes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The Acting CHAIR. A recorded vote has been demanded.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 184,
noes 243, not voting 5, as follows:
[[Page H1701]]
[Roll No. 168]
AYES--184
Ackerman
Andrews
Baca
Baldwin
Bass (CA)
Becerra
Berkley
Berman
Bishop (GA)
Bishop (NY)
Blumenauer
Boren
Boswell
Brady (PA)
Braley (IA)
Brown (FL)
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carney
Carson (IN)
Castor (FL)
Chandler
Chu
Cicilline
Clarke (MI)
Clarke (NY)
Clay
Cleaver
Clyburn
Cohen
Connolly (VA)
Conyers
Cooper
Costa
Costello
Courtney
Critz
Crowley
Cuellar
Cummings
Davis (CA)
Davis (IL)
DeFazio
DeGette
DeLauro
Deutch
Dicks
Dingell
Doggett
Donnelly (IN)
Doyle
Edwards
Ellison
Engel
Eshoo
Farr
Fattah
Filner
Frank (MA)
Fudge
Garamendi
Gonzalez
Green, Al
Green, Gene
Grijalva
Gutierrez
Hanabusa
Harris
Hastings (FL)
Heinrich
Higgins
Himes
Hinchey
Hinojosa
Hirono
Holden
Holt
Honda
Hoyer
Inslee
Israel
Jackson (IL)
Jackson Lee (TX)
Johnson (GA)
Johnson, E. B.
Kaptur
Keating
Kildee
Kind
Kissell
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee (CA)
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lujan
Lynch
Maloney
Markey
Matheson
Matsui
McCarthy (NY)
McCollum
McDermott
McGovern
McIntyre
McNerney
Meeks
Michaud
Miller (NC)
Miller, George
Moore
Moran
Murphy (CT)
Nadler
Napolitano
Neal
Olver
Pallone
Pascrell
Pastor (AZ)
Payne
Pelosi
Perlmutter
Peters
Pingree (ME)
Polis
Price (NC)
Quigley
Rahall
Rangel
Richardson
Richmond
Ross (AR)
Rothman (NJ)
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schwartz
Scott (VA)
Scott, David
Serrano
Sewell
Sherman
Sires
Slaughter
Speier
Stark
Sutton
Thompson (CA)
Thompson (MS)
Tierney
Tonko
Towns
Tsongas
Van Hollen
Velazquez
Visclosky
Walz (MN)
Wasserman Schultz
Waters
Watt
Waxman
Weiner
Welch
Wilson (FL)
Woolsey
Wu
Yarmuth
NOES--243
Adams
Aderholt
Akin
Alexander
Altmire
Amash
Austria
Bachmann
Bachus
Barletta
Barrow
Bartlett
Barton (TX)
Bass (NH)
Benishek
Berg
Biggert
Bilbray
Bilirakis
Bishop (UT)
Black
Blackburn
Bonner
Bono Mack
Boustany
Brady (TX)
Brooks
Broun (GA)
Buchanan
Bucshon
Buerkle
Burgess
Burton (IN)
Calvert
Camp
Campbell
Canseco
Cantor
Capito
Carter
Cassidy
Chabot
Chaffetz
Coble
Coffman (CO)
Cole
Conaway
Cravaack
Crawford
Crenshaw
Culberson
Davis (KY)
Denham
Dent
DesJarlais
Dold
Dreier
Duffy
Duncan (SC)
Duncan (TN)
Ellmers
Emerson
Farenthold
Fincher
Fitzpatrick
Flake
Fleischmann
Fleming
Flores
Forbes
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Gardner
Garrett
Gerlach
Gibbs
Gibson
Gingrey (GA)
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (MO)
Griffin (AR)
Griffith (VA)
Grimm
Guinta
Guthrie
Hall
Hanna
Harper
Hartzler
Hastings (WA)
Hayworth
Heck
Heller
Hensarling
Herger
Herrera Beutler
Huelskamp
Huizenga (MI)
Hultgren
Hunter
Hurt
Issa
Jenkins
Johnson (IL)
Johnson (OH)
Johnson, Sam
Jones
Jordan
Kelly
King (IA)
King (NY)
Kingston
Kinzinger (IL)
Kline
Labrador
Lamborn
Lance
Landry
Lankford
Latham
LaTourette
Latta
Lewis (CA)
LoBiondo
Long
Lucas
Luetkemeyer
Lummis
Lungren, Daniel E.
Mack
Marchant
Marino
McCarthy (CA)
McCaul
McClintock
McCotter
McHenry
McKeon
McKinley
McMorris Rodgers
Meehan
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Mulvaney
Murphy (PA)
Myrick
Neugebauer
Noem
Nugent
Nunes
Nunnelee
Olson
Owens
Palazzo
Paul
Paulsen
Pearce
Pence
Peterson
Petri
Pitts
Platts
Poe (TX)
Pompeo
Posey
Price (GA)
Quayle
Reed
Rehberg
Reichert
Renacci
Ribble
Rigell
Rivera
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rokita
Rooney
Ros-Lehtinen
Roskam
Ross (FL)
Royce
Runyan
Ryan (WI)
Scalise
Schilling
Schmidt
Schock
Schrader
Schweikert
Scott (SC)
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuler
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Southerland
Stearns
Stivers
Stutzman
Sullivan
Terry
Thompson (PA)
Thornberry
Tiberi
Tipton
Turner
Upton
Walberg
Walden
Walsh (IL)
Webster
West
Westmoreland
Whitfield
Wilson (SC)
Wittman
Wolf
Womack
Woodall
Yoder
Young (AK)
Young (FL)
Young (IN)
NOT VOTING--5
Diaz-Balart
Giffords
Manzullo
Reyes
Smith (WA)
{time} 1553
Messrs. DUFFY, ROGERS of Alabama, HUNTER, DENHAM, BROOKS, TIPTON,
TERRY, LAMBORN, McHENRY, ROONEY, and Mrs. MYRICK changed their vote
from ``aye'' to ``no.''
Messrs. GARAMENDI, CARSON of Indiana, DINGELL, DOGGETT, and Ms.
SPEIER changed their vote from ``no'' to ``aye.''
So the amendment was rejected.
The result of the vote was announced as above recorded.
Amendment No. 6 Offered by Ms. Waters, as Modified
The Acting CHAIR. The unfinished business is the demand for a
recorded vote on the amendment offered by the gentlewoman from
California (Ms. Waters), as modified, on which further proceedings were
postponed and on which the ayes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The Acting CHAIR. A recorded vote has been demanded.
A recorded vote was ordered.
The Acting CHAIR. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 278,
noes 147, not voting 7, as follows:
[Roll No. 169]
AYES--278
Ackerman
Aderholt
Akin
Alexander
Andrews
Austria
Baca
Bachus
Baldwin
Barletta
Barrow
Bartlett
Bass (CA)
Bass (NH)
Becerra
Benishek
Berg
Berkley
Berman
Biggert
Bilbray
Bilirakis
Bishop (GA)
Bishop (NY)
Blumenauer
Bonner
Boswell
Boustany
Brady (PA)
Braley (IA)
Brown (FL)
Butterfield
Calvert
Camp
Canseco
Capito
Capps
Capuano
Cardoza
Carnahan
Carney
Carson (IN)
Cassidy
Castor (FL)
Chaffetz
Chu
Cicilline
Clarke (MI)
Clarke (NY)
Clay
Cleaver
Clyburn
Cohen
Cole
Connolly (VA)
Conyers
Costa
Costello
Courtney
Cravaack
Crawford
Crenshaw
Critz
Crowley
Cuellar
Cummings
Davis (CA)
Davis (IL)
Davis (KY)
DeFazio
DeGette
DeLauro
Dent
Deutch
Dicks
Dingell
Doggett
Dold
Donnelly (IN)
Doyle
Dreier
Duncan (TN)
Edwards
Ellison
Emerson
Engel
Eshoo
Farenthold
Farr
Fattah
Filner
Fitzpatrick
Flake
Forbes
Fortenberry
Frank (MA)
Fudge
Gallegly
Garamendi
Gardner
Gerlach
Gibson
Gonzalez
Goodlatte
Granger
Green, Al
Green, Gene
Griffin (AR)
Grijalva
Grimm
Guinta
Gutierrez
Hanabusa
Hanna
Harper
Harris
Hastings (FL)
Heinrich
Heller
Hensarling
Herger
Herrera Beutler
Higgins
Himes
Hinchey
Hinojosa
Hirono
Holden
Holt
Honda
Hoyer
Inslee
Israel
Issa
Jackson (IL)
Jackson Lee (TX)
Johnson (GA)
Johnson (IL)
Johnson (OH)
Johnson, E. B.
Jones
Kaptur
Keating
Kildee
Kind
King (NY)
Kinzinger (IL)
Kissell
Kline
Kucinich
Langevin
Larsen (WA)
Larson (CT)
LaTourette
Lee (CA)
Levin
Lewis (GA)
Loebsack
Lofgren, Zoe
Lowey
Lucas
Lujan
Lynch
Maloney
Marino
Markey
Matheson
Matsui
McCarthy (NY)
McCollum
McDermott
McGovern
McIntyre
McKeon
McMorris Rodgers
McNerney
Meehan
Meeks
Michaud
Miller (FL)
Miller (MI)
Miller (NC)
Miller, Gary
Miller, George
Moore
Moran
Murphy (CT)
Nadler
Napolitano
Neal
Nugent
Nunnelee
Olson
Olver
Pallone
Pascrell
Pastor (AZ)
Paulsen
Payne
Pelosi
Perlmutter
Peters
Petri
Pingree (ME)
Platts
Polis
Price (NC)
Quigley
Rahall
Rangel
Reichert
Renacci
Richardson
Richmond
Rigell
Rogers (AL)
Rogers (KY)
Rohrabacher
Ross (AR)
Rothman (NJ)
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Ryan (WI)
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schock
Schwartz
Schweikert
Scott (VA)
Scott, David
Serrano
Sewell
Sherman
Shimkus
Sires
Slaughter
Smith (NJ)
Smith (TX)
Speier
Stark
Stearns
Stivers
Sutton
Thompson (CA)
Thompson (MS)
Tiberi
Tierney
Tipton
Tonko
Towns
Tsongas
Turner
Upton
Van Hollen
Velazquez
Visclosky
Walden
Walz (MN)
Wasserman Schultz
Waters
Watt
Waxman
Weiner
Welch
Whitfield
Wilson (FL)
Wittman
[[Page H1702]]
Wolf
Womack
Woodall
Woolsey
Wu
Yarmuth
NOES--147
Adams
Altmire
Amash
Bachmann
Barton (TX)
Bishop (UT)
Black
Blackburn
Bono Mack
Boren
Brady (TX)
Brooks
Broun (GA)
Buchanan
Bucshon
Buerkle
Burgess
Burton (IN)
Campbell
Cantor
Carter
Chabot
Chandler
Coble
Coffman (CO)
Conaway
Cooper
Culberson
Denham
DesJarlais
Diaz-Balart
Duffy
Duncan (SC)
Ellmers
Fincher
Fleischmann
Fleming
Flores
Foxx
Franks (AZ)
Frelinghuysen
Garrett
Gibbs
Gingrey (GA)
Gohmert
Gosar
Gowdy
Graves (GA)
Graves (MO)
Griffith (VA)
Guthrie
Hall
Hartzler
Hastings (WA)
Hayworth
Heck
Huelskamp
Huizenga (MI)
Hultgren
Hunter
Jenkins
Johnson, Sam
Jordan
Kelly
King (IA)
Kingston
Labrador
Lamborn
Lance
Landry
Lankford
Latham
Latta
Lewis (CA)
Lipinski
LoBiondo
Long
Luetkemeyer
Lummis
Lungren, Daniel E.
Mack
McCarthy (CA)
McCaul
McClintock
McCotter
McHenry
McKinley
Mica
Mulvaney
Murphy (PA)
Myrick
Neugebauer
Noem
Nunes
Owens
Palazzo
Paul
Pearce
Pence
Peterson
Pitts
Pompeo
Posey
Price (GA)
Quayle
Reed
Rehberg
Ribble
Rivera
Roby
Roe (TN)
Rogers (MI)
Rokita
Rooney
Ros-Lehtinen
Roskam
Ross (FL)
Royce
Runyan
Scalise
Schilling
Schmidt
Schrader
Scott (SC)
Scott, Austin
Sensenbrenner
Sessions
Shuler
Shuster
Simpson
Smith (NE)
Southerland
Stutzman
Sullivan
Terry
Thompson (PA)
Thornberry
Walberg
Walsh (IL)
Webster
West
Westmoreland
Wilson (SC)
Yoder
Young (AK)
Young (FL)
Young (IN)
NOT VOTING--7
Giffords
Hurt
Manzullo
Marchant
Poe (TX)
Reyes
Smith (WA)
{time} 1559
So the amendment, as modified, was agreed to.
The result of the vote was announced as above recorded.
Stated for:
Mr. POE of Texas. Madam Chair, on rollcall No. 169 I was unavoidably
detained. Had I been present, I would have voted ``yes.''
Stated against:
Mr. HURT. Madam Chair, on rollcall No. 169, I was unavoidably
detained. Had I been present, I would have voted ``no.''
The Acting CHAIR. The question is on the committee amendment in the
nature of a substitute, as amended.
The amendment was agreed to.
The Acting CHAIR. Under the rule, the Committee rises.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Chaffetz) having assumed the chair, Mrs. Miller of Michigan, Acting
Chair of the Committee of the Whole House on the state of the Union,
reported that that Committee, having had under consideration the bill
(H.R. 830) to rescind the unobligated funding for the FHA Refinance
Program and to terminate the program, and, pursuant to House Resolution
150, reported the bill back to the House with an amendment adopted in
the Committee of the Whole.
The SPEAKER pro tempore. Under the rule, the previous question is
ordered.
Is a separate vote demanded on any amendment to the amendment
reported from the Committee of the Whole?
If not, the question is on the committee amendment in the nature of a
substitute, as amended.
The amendment was agreed to.
The SPEAKER pro tempore. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion to Recommit
Mr. DEUTCH. Mr. Speaker, I have a motion to recommit at the desk.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. DEUTCH. I am, in its current form.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. Deutch of Florida moves to recommit the bill, H.R. 830,
to the Committee on Financial Services with instructions to
report the same back to the House forthwith with the
following amendments:
In section 3(b), before ``shall continue'' insert the
following: ``, and any amounts made available for use under
such Program pursuant to subsection (d),''.
In section 3(c), after ``such enactment,'' insert ``or
pursuant to a commitment to insure made pursuant amounts made
available for use under such Program pursuant to subsection
(d),''
In section 3, strike subsection (d) and insert the
following new subsection:
(d) Continuation of Program for Senior Homeowners.--
(1) Identification of amounts for refinancings for senior
homeowners.--Not later than the expiration of the 180-day
period beginning on the date of the enactment of this Act,
the Secretary of Housing and Urban Development shall--
(A) determine the amount necessary to provide assistance
under the FHA Refinance Program described in subsection (a)
to senior homeowners (as such term is defined in paragraph
(3) of this subsection); and
(B) submit notice of such determination to the Congress
that specifies such amount.
(2) Authorization of appropriations.--Effective upon the
submission to the Congress by the Secretary of Housing and
Urban Development of the notice required under paragraph (1),
there is authorized to be appropriated, for assistance under
the FHA Refinance Program referred to in section 2 only for
mortgages for senior homeowners, the amount identified in
such notice.
(3) Senior homeowner.--For purposes of this subsection, the
term ``senior homeowner'' means a homeowner who is a member
of a household composed of one or more persons at least one
of whom is 62 years of age or older.
Mr. DEUTCH (during the reading). Mr. Speaker, I ask unanimous consent
to dispense with the reading.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Florida?
There was no objection.
The SPEAKER pro tempore. The gentleman from Florida is recognized for
5 minutes.
Mr. DEUTCH. Mr. Speaker, I present an amendment to this legislation
that will help the seniors who built America from the bottom up. This
amendment provides us with an opportunity not to stall this bill, but
improve it, right here and right now. The contributions of the men and
women who became known as America's greatest generation should humble
us all.
As teenagers, Mr. Speaker, they confronted unspeakable evil and
endured incredible sacrifices during World War II. In the aftermath of
the Great Depression, their love of country and commitment to hard work
created the world's most vibrant economy. They were doctors and nurses,
teachers and engineers, steelworkers and pipefitters, secretaries and
truck drivers. Today, they are seniors who deserve to live their
retirement years with dignity and self-sufficiency.
Unfortunately, throughout the financial crisis and this devastating
recession, seniors have often gone forgotten. For many, their pensions
have dried up or come under attack. Their life savings were decimated
by recklessness on Wall Street. They have not received a Social
Security cost of living increase for 2 years. Finally, Mr. Speaker,
their homes, often their last standing pillar of equity and economic
security, have lost their value through no fault of their own.
The community of South Florida I am so privileged to represent is
home to one of our Nation's largest populations of retirees. But it is
also ground zero for the foreclosure crisis. In 2010, Mr. Speaker,
South Florida outpaced the Nation for new foreclosure filings. The
counties of Palm Beach, Broward, and Miami Dade have suffered the
majority of these foreclosures in Florida, and my office fields calls
from struggling homeowners every day.
Statewide in Florida, nearly 1 million families and seniors have lost
their homes since 2009. Today, nearly half of all Florida homeowners
are underwater on their mortgages. They owe banks more money than their
homes are now worth. Through no fault of their own, thousands of
seniors who built this Nation face the tragedy of losing their homes.
Now, America's greatest generation has never been one to ask for
handouts, and today is no exception. What we have the opportunity to do
here today is to give our seniors a chance--a chance--to rearrange
their deal with their lenders, make their payments, and keep their
homes. The mortgage program abolished by the bill needs to be fixed. So
let's start by fixing it for seniors, as my proposal will do.
Before us is a real opportunity to amend these programs for the
future. It will not send this legislation back to committee. It will
not stall this bill. It will simply preserve these mortgage
[[Page H1703]]
modification programs for seniors and open the door to improving these
initiatives.
According to leading economists, high foreclosure rates and our
struggling housing sector remain the biggest challenge to our economic
recovery. In Florida, with unemployment at 12 percent, the real estate
industry is so integral to our economy, we must stem foreclosures in
order to grow the private sector and create jobs. We can begin
stabilizing the housing market today and do right by Americans who made
this country great for every one of us in this Chamber.
Seniors answered the call of Uncle Sam every week of their working
lives, paying taxes for America's schools, roads, military and health
care. When asked to serve, these Americans always said yes. Now, when
these same men and women are asking for a modest amount of time to
renegotiate in good faith, to prevent foreclosure, to remain self-
sufficient as retirees, what answer will this body give them?
Every day, it seems, mortgage lenders have their day in Washington.
Every day, Wall Street executives have their day in Washington. Every
day, Mr. Speaker, banks have their day in Washington. Isn't it time to
give the seniors who made America great their day in our Nation's
capital?
Let's make today a day for the people who rebuilt this country after
the Great Depression, who started the businesses small and large so
important to our economy, the people who are our parents and our
children's grandparents, who served our nation, who made America what
it is today, the people who taught us what it means to be Americans.
They're not asking for credit or recognition or attention, but we owe
it to them to honor their lifetimes of hard work and responsibility and
decency by making it possible for them to live out the rest of their
lives with four walls around them and a roof over their heads.
Vote ``yes'' on this amendment.
Mr. BACHUS. Mr. Speaker, I rise in opposition to the motion to
recommit.
The SPEAKER pro tempore. The gentleman from Alabama is recognized for
5 minutes.
Mr. BACHUS. Mr. Speaker, this is simply a procedural measure to stop
this legislation which cuts yet again another wasteful government
program. This program has already allocated $50 million and it has only
helped 42 American families. Do that math. It authorizes $8 billion.
That's at a time when this country has a record deficit for this year.
{time} 1610
And yet they don't get the message, my Democratic colleagues. They
simply do not realize this money goes to the lender, this goes to the
banks, that's who the checks are made out to. And who pays for it? The
taxpayers. And, ultimately, this is who pays for it: our children and
our grandchildren. We can't pay it back because we borrow 42 cents out
of every dollar. And let me tell you, a lot of them have grandparents.
When you talk about seniors, let's talk about our children and our
grandchildren. Let's talk about that we're endangering their future.
Mr. Speaker, I yield the balance of my time to the gentleman from New
York (Mr. Grimm).
Mr. GRIMM. Thank you, Chairman Bachus.
You know, I just came back from my district in Staten Island and
Brooklyn, and I visited several senior centers. And I'll tell you, the
seniors are nervous, they're worried. You know what their number one
fear is? Their number one fear is that their children and grandchildren
will not have the opportunities that they had. I heard countless story
after story that their children are out of work. So when I hear about
another failed program, I think of the mandate--and it was a mandate.
I'm not sure if everyone in this room heard it in this Chamber, but I
heard it--and the mandate was very simple: cut the spending, grow the
economy, and create jobs.
This program is broken, and to think that somehow suddenly--
miraculously--it's going to work for seniors is outrageous. And I have
to tell you, I cannot, in good conscience, go back to my district, go
back to those senior centers, look those seniors in the eye and tell
them that I supported another failed program because someone stood up
and said, well, it's for seniors. You can label it any way you want,
you can put anything you want on this, but at the end of the day it's a
failed program.
And for that reason, I strongly urge my colleagues to support the
chairman and end this reckless spending.
The SPEAKER pro tempore. Without objection, the previous question is
ordered.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Recorded Vote
Mr. DEUTCH. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, the Chair
will reduce to 5 minutes the minimum time for any electronic vote on
the question of passage.
The vote was taken by electronic device, and there were--ayes 185,
noes 243, not voting 4, as follows:
[Roll No. 170]
AYES--185
Ackerman
Andrews
Baca
Baldwin
Barrow
Bass (CA)
Becerra
Berkley
Berman
Bishop (GA)
Bishop (NY)
Blumenauer
Boswell
Brady (PA)
Braley (IA)
Brown (FL)
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carney
Carson (IN)
Castor (FL)
Chandler
Chu
Cicilline
Clarke (MI)
Clarke (NY)
Clay
Cleaver
Clyburn
Cohen
Connolly (VA)
Conyers
Cooper
Costa
Costello
Courtney
Critz
Crowley
Cuellar
Cummings
Davis (CA)
Davis (IL)
DeFazio
DeGette
DeLauro
Deutch
Dicks
Dingell
Doggett
Donnelly (IN)
Doyle
Edwards
Ellison
Engel
Eshoo
Farr
Fattah
Filner
Frank (MA)
Fudge
Garamendi
Gonzalez
Green, Al
Green, Gene
Grijalva
Gutierrez
Hanabusa
Hastings (FL)
Heinrich
Higgins
Himes
Hinchey
Hinojosa
Hirono
Holden
Holt
Honda
Hoyer
Inslee
Israel
Jackson (IL)
Jackson Lee (TX)
Johnson (GA)
Johnson, E. B.
Kaptur
Keating
Kildee
Kind
Kissell
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee (CA)
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lujan
Lynch
Maloney
Markey
Matsui
McCarthy (NY)
McCollum
McDermott
McGovern
McIntyre
McNerney
Meeks
Michaud
Miller (NC)
Miller, George
Moore
Moran
Murphy (CT)
Nadler
Napolitano
Neal
Olver
Pallone
Pascrell
Pastor (AZ)
Payne
Pelosi
Perlmutter
Peters
Peterson
Pingree (ME)
Polis
Price (NC)
Quigley
Rahall
Rangel
Richardson
Richmond
Ross (AR)
Rothman (NJ)
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schrader
Schwartz
Scott (VA)
Scott, David
Serrano
Sewell
Sherman
Shuler
Sires
Slaughter
Speier
Stark
Sutton
Thompson (CA)
Thompson (MS)
Tierney
Tonko
Towns
Tsongas
Van Hollen
Velazquez
Visclosky
Walz (MN)
Wasserman Schultz
Waters
Watt
Waxman
Weiner
Welch
Wilson (FL)
Woolsey
Wu
Yarmuth
NOES--243
Adams
Aderholt
Akin
Alexander
Altmire
Amash
Austria
Bachmann
Bachus
Barletta
Bartlett
Barton (TX)
Bass (NH)
Benishek
Berg
Biggert
Bilbray
Bilirakis
Bishop (UT)
Black
Blackburn
Bonner
Bono Mack
Boren
Boustany
Brady (TX)
Brooks
Broun (GA)
Buchanan
Bucshon
Buerkle
Burgess
Burton (IN)
Calvert
Camp
Campbell
Canseco
Cantor
Capito
Carter
Cassidy
Chabot
Chaffetz
Coble
Coffman (CO)
Cole
Conaway
Cravaack
Crawford
Crenshaw
Culberson
Davis (KY)
Denham
Dent
DesJarlais
Diaz-Balart
Dold
Dreier
Duffy
Duncan (SC)
Duncan (TN)
Ellmers
Emerson
Farenthold
Fincher
Fitzpatrick
Flake
Fleischmann
Fleming
Flores
Forbes
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Gardner
Garrett
Gerlach
Gibbs
Gibson
Gingrey (GA)
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (MO)
Griffin (AR)
Griffith (VA)
Grimm
Guinta
Guthrie
Hall
Hanna
Harper
Harris
Hartzler
Hastings (WA)
Hayworth
Heck
Heller
Hensarling
Herger
Herrera Beutler
Huelskamp
Huizenga (MI)
Hultgren
Hunter
Hurt
Issa
Jenkins
Johnson (IL)
Johnson (OH)
Johnson, Sam
Jones
Jordan
Kelly
King (IA)
King (NY)
Kingston
Kinzinger (IL)
Kline
Labrador
Lamborn
Lance
Landry
Lankford
Latham
LaTourette
Latta
[[Page H1704]]
Lewis (CA)
LoBiondo
Long
Lucas
Luetkemeyer
Lummis
Lungren, Daniel E.
Mack
Marchant
Marino
Matheson
McCarthy (CA)
McCaul
McClintock
McCotter
McHenry
McKeon
McKinley
McMorris Rodgers
Meehan
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Mulvaney
Murphy (PA)
Myrick
Neugebauer
Noem
Nugent
Nunes
Nunnelee
Olson
Owens
Palazzo
Paul
Paulsen
Pearce
Pence
Petri
Pitts
Platts
Poe (TX)
Pompeo
Posey
Price (GA)
Quayle
Reed
Rehberg
Reichert
Renacci
Ribble
Rigell
Rivera
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rokita
Rooney
Ros-Lehtinen
Roskam
Ross (FL)
Royce
Runyan
Ryan (WI)
Scalise
Schilling
Schmidt
Schock
Schweikert
Scott (SC)
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Southerland
Stearns
Stivers
Stutzman
Sullivan
Terry
Thompson (PA)
Thornberry
Tiberi
Tipton
Turner
Upton
Walberg
Walden
Walsh (IL)
Webster
West
Westmoreland
Whitfield
Wilson (SC)
Wittman
Wolf
Womack
Woodall
Yoder
Young (AK)
Young (FL)
Young (IN)
NOT VOTING--4
Giffords
Manzullo
Reyes
Smith (WA)
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). There is 1 minute left in
the vote.
{time} 1630
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Recorded Vote
Mr. HENSARLING. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 256,
noes 171, not voting 5, as follows:
[Roll No. 171]
AYES--256
Adams
Aderholt
Akin
Alexander
Altmire
Amash
Austria
Bachmann
Bachus
Barletta
Barrow
Bartlett
Barton (TX)
Bass (NH)
Benishek
Berg
Biggert
Bilbray
Bilirakis
Bishop (UT)
Black
Blackburn
Bonner
Bono Mack
Boren
Boustany
Brady (TX)
Brooks
Broun (GA)
Buchanan
Bucshon
Buerkle
Burgess
Burton (IN)
Calvert
Camp
Campbell
Canseco
Cantor
Capito
Cardoza
Carney
Carter
Cassidy
Chabot
Chaffetz
Chandler
Coble
Coffman (CO)
Cole
Conaway
Cooper
Costa
Cravaack
Crawford
Crenshaw
Cuellar
Culberson
Davis (KY)
Denham
Dent
DesJarlais
Diaz-Balart
Dold
Dreier
Duffy
Duncan (SC)
Duncan (TN)
Ellmers
Emerson
Farenthold
Fincher
Fitzpatrick
Flake
Fleischmann
Fleming
Flores
Forbes
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Gardner
Garrett
Gerlach
Gibbs
Gibson
Gingrey (GA)
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (MO)
Griffin (AR)
Griffith (VA)
Grimm
Guinta
Guthrie
Hall
Hanna
Harper
Harris
Hartzler
Hastings (WA)
Hayworth
Heller
Hensarling
Herger
Herrera Beutler
Huelskamp
Huizenga (MI)
Hultgren
Hunter
Hurt
Issa
Jenkins
Johnson (IL)
Johnson (OH)
Johnson, Sam
Jones
Jordan
Kelly
King (IA)
King (NY)
Kingston
Kinzinger (IL)
Kline
Labrador
Lamborn
Lance
Landry
Lankford
Larsen (WA)
Latham
LaTourette
Latta
Lewis (CA)
Lipinski
LoBiondo
Long
Lucas
Luetkemeyer
Lummis
Lungren, Daniel E.
Mack
Marchant
Marino
Matheson
McCarthy (CA)
McCaul
McClintock
McCotter
McHenry
McKeon
McKinley
McMorris Rodgers
Meehan
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Mulvaney
Murphy (PA)
Myrick
Neugebauer
Noem
Nugent
Nunes
Nunnelee
Olson
Owens
Palazzo
Paul
Paulsen
Pearce
Pence
Peterson
Petri
Pitts
Platts
Poe (TX)
Pompeo
Posey
Price (GA)
Quayle
Reed
Rehberg
Reichert
Renacci
Ribble
Rigell
Rivera
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rokita
Rooney
Ros-Lehtinen
Roskam
Ross (AR)
Ross (FL)
Royce
Runyan
Ryan (WI)
Scalise
Schilling
Schmidt
Schock
Schrader
Schweikert
Scott (SC)
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuler
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Southerland
Stearns
Stivers
Stutzman
Sullivan
Terry
Thompson (PA)
Thornberry
Tiberi
Tipton
Turner
Upton
Walberg
Walden
Walsh (IL)
Walz (MN)
Webster
West
Westmoreland
Whitfield
Wilson (SC)
Wittman
Wolf
Womack
Woodall
Yoder
Young (AK)
Young (FL)
Young (IN)
NOES--171
Ackerman
Andrews
Baca
Baldwin
Bass (CA)
Becerra
Berkley
Berman
Bishop (GA)
Bishop (NY)
Blumenauer
Boswell
Brady (PA)
Braley (IA)
Brown (FL)
Butterfield
Capps
Capuano
Carnahan
Carson (IN)
Castor (FL)
Chu
Cicilline
Clarke (MI)
Clarke (NY)
Clay
Cleaver
Clyburn
Cohen
Connolly (VA)
Conyers
Costello
Courtney
Critz
Crowley
Cummings
Davis (CA)
Davis (IL)
DeFazio
DeGette
DeLauro
Deutch
Dicks
Dingell
Doggett
Donnelly (IN)
Doyle
Edwards
Ellison
Engel
Eshoo
Fattah
Filner
Frank (MA)
Fudge
Garamendi
Gonzalez
Green, Al
Green, Gene
Grijalva
Gutierrez
Hanabusa
Hastings (FL)
Heck
Heinrich
Higgins
Himes
Hinchey
Hinojosa
Hirono
Holden
Holt
Honda
Hoyer
Inslee
Israel
Jackson (IL)
Jackson Lee (TX)
Johnson (GA)
Johnson, E. B.
Kaptur
Keating
Kildee
Kind
Kissell
Kucinich
Langevin
Larson (CT)
Lee (CA)
Levin
Lewis (GA)
Loebsack
Lofgren, Zoe
Lowey
Lujan
Lynch
Maloney
Markey
Matsui
McCarthy (NY)
McCollum
McDermott
McGovern
McIntyre
McNerney
Meeks
Michaud
Miller (NC)
Miller, George
Moore
Moran
Murphy (CT)
Nadler
Napolitano
Neal
Olver
Pallone
Pascrell
Pastor (AZ)
Payne
Pelosi
Perlmutter
Peters
Pingree (ME)
Polis
Price (NC)
Quigley
Rahall
Rangel
Richardson
Richmond
Rothman (NJ)
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schwartz
Scott (VA)
Scott, David
Serrano
Sewell
Sherman
Sires
Slaughter
Speier
Stark
Sutton
Thompson (CA)
Thompson (MS)
Tierney
Tonko
Towns
Tsongas
Van Hollen
Velazquez
Visclosky
Wasserman Schultz
Waters
Watt
Waxman
Weiner
Welch
Wilson (FL)
Woolsey
Wu
Yarmuth
NOT VOTING--5
Farr
Giffords
Manzullo
Reyes
Smith (WA)
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). There is 1 minute left in
the vote.
{time} 1637
Mr. McINTYRE changed his vote from ``aye'' to ``no.''
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________