[Congressional Record Volume 157, Number 46 (Friday, April 1, 2011)]
[Extensions of Remarks]
[Page E595]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    THE HAMP TERMINATION ACT OF 2011

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                               speech of

                           HON. ANDRE CARSON

                               of indiana

                    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. CARSON of Indiana. Mr. Chair, in the last few years, the United 
States has faced a devastating economic crisis. As a result of the 
economic downturn, many homeowners have lost their homes or are at 
imminent risk of foreclosure. The Obama Administration launched the 
federal Home Affordable Modification Program (``HAMP'') to stem the 
escalating tide of home foreclosures with its ruinous effects on 
families and their communities. HAMP's purpose is to provide eligible 
homeowners with permanent loan modifications on terms they can afford 
in order to avoid foreclosure of their homes.
  Although this program is far from perfect, it has helped more than 
600,000 families lower their mortgage payments and stay in their homes. 
H.R. 839, the HAMP Termination Act of 2011, will end this program. I 
have yet to see any Republican alternative to our housing crisis! There 
are 3 million foreclosures forecasted this year nationwide and a 
housing turnaround is not expected for at least three years.
  Missing in the Republicans limited discussion on housing is the 
impact of the housing crisis on communities of color in the United 
States. An estimated 17 percent of Latino families and 11 percent of 
African American families have lost their homes or are at an imminent 
risk of losing their homes. Meanwhile, Republicans continue to 
eliminate all government involvement in Fannie Mae and Freddie Mac. 
While these institutions need to be reformed, they do serve important 
functions such as making the 30-year, fixed-rate mortgage available to 
the general public and providing mortgage credit and affordable rental 
housing for communities of color. If we do not focus seriously on our 
minority communities, which are disproportionately affected by the 
economic crisis, the home buying environment for these communities will 
worsen as the economy recovers. The American dream will cease to exist 
for many. Fewer mortgages would be available to working-class families 
in the long run without some government- backed financing.
  Eliminating support to distressed homeowners at this point in time 
would be disastrous for neighborhoods trying to recover from the 
foreclosure crisis. Instead, we should focus our efforts on ways to 
make HAMP a useful, wide-reaching program with meaningful goals, such 
as pushing lenders and loan servicers to reduce the principal on 
underwater loans and giving struggling homeowners real relief.
  The latest foreclosure rates in the 7th congressional district of 
Indiana are higher than the national average. Terminating HAMP and 
denying critical assistance to struggling Americans is not the answer. 
HAMP has allowed thousands of Hoosiers to survive unemployment. The 
program has lowered monthly mortgage payments, and given families the 
breathing room they needed to keep their home. There is no easy way to 
repair the deep damage caused by the housing crisis. It will take time 
and a sustained, comprehensive effort. I will continue to fight on 
behalf of Hoosiers to keep them in their homes.

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