[Congressional Record Volume 157, Number 44 (Wednesday, March 30, 2011)]
[Extensions of Remarks]
[Pages E558-E559]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    THE HAMP TERMINATION ACT OF 2011

                                 ______
                                 

                               speech of

                         HON. LUIS V. GUTIERREZ

                              of illinois

                    in the house of representatives

                        Tuesday, March 29, 2011

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 839) to 
     amend the Emergency Economic Stabilization Act of 2008 to 
     terminate the authority of the Secretary of the Treasury to 
     provide new assistance under the Home Affordable Modification 
     Program, while preserving assistance to homeowners who were 
     already extended an offer to participate in the Program, 
     either on a trial or permanent basis:

  Mr. GUTIERREZ. Mr. Chair, I rise today in strong opposition to the 
HAMP Termination Act, or H.R. 839, a bill to eliminate the Home 
Affordable Modification Program (HAMP). This is just another attempt by 
my Republican colleagues to do away with important and necessary 
programs that help our struggling families and communities cope with 
the devastation of the housing crisis. Our families are dealing with 
real emergencies and they want real solutions, yet the Republicans 
offer no meaningful replacement to help families during this housing 
and foreclosure epidemic.
  The Home Affordable Modification Program was put in place by the 
Obama Administration to provide critical assistance to American 
homeowners who are working tirelessly to save their homes. While it 
wasn't meant to save every home on the brink of foreclosure, this 
program has helped over 600,000 homeowners since it was first launched. 
This means that because of HAMP, over 600,000 families were given an 
opportunity they otherwise wouldn't have had to save their home. 
Approximately 30,000 homeowners are assisted through HAMP each month. 
If we eliminate this program now, we would be doing a great disservice 
to these homeowners and to the recovery of our fragile housing market.
  The ineptitude and noncompliance of banks and mortgage servicers have 
created a laundry list of mistakes and missteps in handling homeowner 
mortgages that led us into this devastating housing situation. HAMP has 
been criticized by all parties because it did not meet its initial 
projected goals. This is partly because HAMP sets strict requirements 
for homeowners to qualify for a modification to ensure that American 
taxpayer dollars are not wasted or misused. Modifications that continue 
to be made outside of HAMP are done by servicers who avoid meeting the 
strict requirements and rules under this program which are put in place 
to protect homeowners. We have a responsibility to our constituents and 
we can't simply leave the fate of homeowners and struggling families to 
the banks and mortgage servicers when their bad mortgage lending 
practices contributed to our nation's housing crisis in the first 
place.
  HAMP is not perfect, but there is no question that HAMP has provided 
critical assistance to homeowners facing avoidable foreclosures. The 
HAMP program has set affordability standards and, more importantly, 
this program has created a framework for the private sector to provide 
assistance. The political theater put together by my Republican 
colleagues to eliminate HAMP and other valuable housing programs and 
replace them with nothing, doesn't do anything to alleviate the dire 
circumstances hundreds of thousands of American families are facing 
today.
  Mr. Chair, ending HAMP now would undoubtedly hamper our nation's 
economic recovery efforts. Many of my colleagues have mentioned 
throughout this debate something we all know to be true: not a single 
witness--including the Government Accountability Office and the Special 
Inspector General for the

[[Page E559]]

Troubled Asset Relief Program--who was invited by Republicans at the 
hearing we held earlier this month in the Housing Subcommittee, over 
which I serve as Ranking Member, supported shutting down any of the 
housing programs Republicans propose to terminate, including HAMP.
  Eliminating HAMP would leave American homeowners with fewer options 
for coping with the worst housing crisis of our generation and would 
leave our fragile housing market in worse condition than when we 
started. I urge my colleagues to support American homeowners and vote 
no on this bill.

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