[Congressional Record (Bound Edition), Volume 154 (2008), Part 1]
[Senate]
[Pages 1438-1446]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. FEINSTEIN (for herself and Mr. Martinez):
  S. 2595. A bill to create a national licensing system for residential 
mortgage loan originators, to develop minimum standards of conduct to 
be enforced by State regulators, and for other purposes; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mrs. FEINSTEIN. Mr. President, I rise today on behalf of myself and 
Senator Martinez to introduce legislation that takes a major step 
forward in curbing the abusive lending practices which contributed to 
the subprime mortgage crisis. With foreclosures at record levels, the 
housing market in steady decline, a global credit crunch, and the 
economy nearing recession, it is imperative that we act quickly to 
restore confidence in the American dream of home ownership.
  Our legislation will eliminate bad actors from the mortgage business, 
and require that brokers and lenders meet minimum national standards 
which ensure they are professional, competent, and trustworthy.
  First, it would create a comprehensive database of all residential 
mortgage loan originators. This includes mortgage brokers and lenders, 
as well as loan officers of national banks and their subsidiaries.
  Second, it would establish national licensing standards to ensure 
that mortgage brokers and lenders are trained in legal aspects of 
lending, ethics, and consumer protection.
  Our bill is similar to H.R. 3012, introduced in the House by 
Representative Spencer Bachus, the Ranking Member of the House 
Committee on Financial Services. The national licensing concept for 
loan originators has enjoyed bipartisan support and was included in the 
comprehensive mortgage reform bill, H.R. 3915, which recently passed 
the House.
  A combination of low interest rates and sophisticated mortgage 
products, among other factors, helped increase home ownership to record 
levels just 3 years ago.
  Subprime and exotic mortgages allowed millions of Americans--many 
with little or no down payment and questionable credit--to purchase 
homes by using adjustable-rate products with low initial monthly 
payments.
  There was explosive growth in the use of these sub-prime loans: in 
just 2 years, from 2004 to 2006, the number of subprime mortgages in 
California increased 110 percent, from 273,000 to 573,000--29.4 percent 
of total mortgages in the State.
  While the majority of lenders and brokers offered these mortgages in 
a responsible fashion, many others relied upon predatory lending 
tactics to place unsuspecting borrowers in mortgages they could not 
afford. Competitive pressures and lax oversight resulted in loans of 
increasingly poor quality being written.
  To make matters worse, consumers were not adequately protected from 
bad actors in the mortgage industry.
  The FBI recently reported that complaints of mortgage fraud have 
skyrocketed over the last few years.
  In 2003, the number of suspicious activity reports reviewed by the 
FBI economic crimes unit numbered 3,000. The number of mortgage fraud 
complaints increased to 48,000 last year, representing a jump of 1500 
percent.
  Most mortgage brokers and non-bank lenders are only lightly regulated 
by State agencies. Standards of accountability have not kept pace with 
the increasing sophistication of the mortgage industry.
  As adjustable-rate mortgages reset to higher rates, many American 
families find themselves in homes they can no longer afford. The 
percentage of homeowners currently behind on their mortgage payments is 
at its highest level in 21 years.
  Mr. President, 2.2 million homeowners filed for foreclosure last year 
and many lenders have gone out of business or sought bankruptcy 
protection.
  It is projected that as many as 2 million Americans will be forced to 
file for foreclosure before this crisis abates, representing $160 
billion in lost equity. The Center for Responsible Lending has 
projected that one out of every five subprime loans issued between 2005 
and 2006 will fail.
  California has been especially hard hit. Mr. President, 5 of the 10 
metropolitan areas with the highest foreclosure rate in the Nation are 
in California. The foreclosure rate in California is roughly twice the 
national average, with 1 foreclosure filing for every 258 households in 
the State.
  Lenders repossessed 84,375 California homes last year, a sixfold 
increase from 12,672 in 2006. Default notices--the initial step in the 
foreclosure process--increased 143 percent between 2006 and 2007, 
rising from 104,977 in 2006 to 254,824 in 2007. In San Diego County 
alone, foreclosures were up 353 percent in 2007.
  According to the FBI economic crimes unit, California has been 
identified as one of the top 10 ``mortgage fraud hot spots'' in the 
Nation.
  American families are hurting, and Californians are at the center of 
the storm. With close to 500,000 adjustable-rate mortgages scheduled to 
reset in California over the next 2 years, the situation is likely to 
worsen in 2008.
  The subprime mortgage crisis has threatened both the global economy 
and the American dream of home ownership. Accountability, professional 
standards, and oversight must be enhanced for everyone in the mortgage 
industry.
  This bill will make it so, and will help to ensure such a crisis 
never happens again.
  Specifically, the S.A.F.E. Mortgage Licensing Act would require that 
all residential mortgage loan originators are licensed, providing 
fingerprints, a summary of work experience, and consent for a 
background check to authorities.
  Additionally, minimum criteria are established that individuals must 
meet to obtain a license, including: no felony convictions; no similar 
license revoked; a demonstrated record of financial responsibility; 
successful completion of education requirements, 20 hours of approved 
courses, to include

[[Page 1439]]

at least 3 hours related to Federal laws, 4 hours on ethics and 
consumer protection in mortgage lending, and 2 hours on the subprime 
mortgage marketplace; and, passage of a written exam, the exam must be 
at least 100 questions and a minimum score of 75 percent is required to 
pass.
  The Federal Reserve, Treasury, and Federal Deposit Insurance 
Corporation must also register all residential mortgage loan 
originators employed by national banks.
  Lastly, State regulators must develop a satisfactory licensing system 
within 1 year following enactment of this legislation.
  If this does not occur, the Housing and Urban Development Secretary 
is empowered to develop the national registry and license, generating 
revenue for its implementation through fees to license applicants.
  The subprime mortgage crisis is wreaking havoc on American homeowners 
and the national economy. The damage is truly staggering--more than 2 
million foreclosure filings last year and another 2 million expected 
before this year is over.
  Many Americans simply cannot keep pace with adjustable-rate mortgages 
that are resetting, and some were steered into these obligations by 
unscrupulous actors.
  It is essential that this body take action to address some of the 
factors that got us here.
  This legislation does not assign blame, but rather provides a 
workable solution to protect homebuyers and begin to restore confidence 
in the American dream of homeownership.
  I hope that my colleagues will join us in moving this important bill 
through the Senate quickly.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2595

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Secure and 
     Fair Enforcement for Mortgage Licensing Act of 2008'' or 
     ``S.A.F.E. Mortgage Licensing Act of 2008''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes and methods for establishing a mortgage licensing 
              system and registry.
Sec. 3. Definitions.
Sec. 4. License or registration required.
Sec. 5. State license and registration application and issuance.
Sec. 6. Standards for State license renewal.
Sec. 7. System of registration administration by Federal banking 
              agencies.
Sec. 8. Secretary of Housing and Urban Development backup authority to 
              establish a loan originator licensing system.
Sec. 9. Backup authority to establish a nationwide mortgage licensing 
              and registry system.
Sec. 10. Fees.
Sec. 11. Background checks of loan originators.
Sec. 12. Confidentiality of information.
Sec. 13. Liability provisions.
Sec. 14. Enforcement under HUD backup licensing system.
Sec. 15. Preemption of State law.
Sec. 16. Reports and recommendations to Congress.
Sec. 17. Study and reports on defaults and foreclosures

     SEC. 2. PURPOSES AND METHODS FOR ESTABLISHING A MORTGAGE 
                   LICENSING SYSTEM AND REGISTRY.

       In order to increase uniformity, reduce regulatory burden, 
     enhance consumer protection, and reduce fraud, the States, 
     through the Conference of State Bank Supervisors and the 
     American Association of Residential Mortgage Regulators, are 
     hereby encouraged to establish a Nationwide Mortgage 
     Licensing System and Registry for the residential mortgage 
     industry that accomplishes all of the following objectives:
       (1) Provides uniform license applications and reporting 
     requirements for State-licensed loan originators.
       (2) Provides a comprehensive licensing and supervisory 
     database.
       (3) Aggregates and improves the flow of information to and 
     between regulators.
       (4) Provides increased accountability and tracking of loan 
     originators.
       (5) Streamlines the licensing process and reduces the 
     regulatory burden.
       (6) Enhances consumer protections and supports anti-fraud 
     measures.
       (7) Provides consumers with easily accessible information, 
     offered at no charge, utilizing electronic media, including 
     the Internet, regarding the employment history of, and 
     publicly adjudicated disciplinary and enforcement actions 
     against, loan originators.

     SEC. 3. DEFINITIONS.

       For purposes of this Act, the following definitions shall 
     apply:
       (1) Federal banking agencies.--The term ``Federal banking 
     agencies'' means the Board of Governors of the Federal 
     Reserve System, the Comptroller of the Currency, the Director 
     of the Office of Thrift Supervision, the National Credit 
     Union Administration, and the Federal Deposit Insurance 
     Corporation.
       (2) Depository institution.--The term ``depository 
     institution'' has the same meaning as in section 3 of the 
     Federal Deposit Insurance Act, and includes any credit union.
       (3) Loan originator.--
       (A) In general.--The term ``loan originator''--
       (i) means an individual who--

       (I) takes a residential mortgage loan application;
       (II) assists a consumer in obtaining or applying to obtain 
     a residential mortgage loan; or
       (III) offers or negotiates terms of a residential mortgage 
     loan, for direct or indirect compensation or gain, or in the 
     expectation of direct or indirect compensation or gain;

       (ii) includes any individual who represents to the public, 
     through advertising or other means of communicating or 
     providing information (including the use of business cards, 
     stationery, brochures, signs, rate lists, or other 
     promotional items), that such individual can or will provide 
     or perform any of the activities described in clause (i);
       (iii) does not include any individual who is not otherwise 
     described in clause (i) or (ii) and who performs purely 
     administrative or clerical tasks on behalf of a person who is 
     described in any such clause.
       (iv) does not include a person or entity that only performs 
     real estate brokerage activities and is licensed or 
     registered in accordance with applicable State law, unless 
     the person or entity is compensated by a lender, a mortgage 
     broker, or other loan originator or by any agent of such 
     lender, mortgage broker, or other loan originator.
       (B) Other definitions relating to loan originator.--For 
     purposes of this subsection, an individual ``assists a 
     consumer in obtaining or applying to obtain a residential 
     mortgage loan'' by, among other things, advising on loan 
     terms (including rates, fees, other costs), preparing loan 
     packages, or collecting information on behalf of the consumer 
     with regard to a residential mortgage loan.
       (C) Administrative or clerical tasks.--The term 
     ``administrative or clerical tasks'' means the receipt, 
     collection, and distribution of information common for the 
     processing or underwriting of a loan in the mortgage industry 
     and communication with a consumer to obtain information 
     necessary for the processing or underwriting of a residential 
     mortgage loan.
       (D) Real estate brokerage activity defined.--The term 
     ``real estate brokerage activity'' means any activity that 
     involves offering or providing real estate brokerage services 
     to the public, including--
       (i) acting as a real estate agent or real estate broker for 
     a buyer, seller, lessor, or lessee of real property;
       (ii) listing or advertising real property for sale, 
     purchase, lease, rental, or exchange;
       (iii) providing advice in connection with sale, purchase, 
     lease, rental, or exchange of real property;
       (iv) bringing together parties interested in the sale, 
     purchase, lease, rental, or exchange of real property;
       (v) negotiating, on behalf of any party, any portion of a 
     contract relating to the sale, purchase, lease, rental, or 
     exchange of real property (other than in connection with 
     providing financing with respect to any such transaction);
       (vi) engaging in any activity for which a person engaged in 
     the activity is required to be registered or licensed as a 
     real estate agent or real estate broker under any applicable 
     law; and
       (vii) offering to engage in any activity, or act in any 
     capacity, described in clause (i), (ii), (iii), (iv), (v), or 
     (vi).
       (4) Loan processor or underwriter.--
       (A) In general.--The term ``loan processor or underwriter'' 
     means an individual who performs clerical or support duties 
     at the direction of and subject to the supervision and 
     instruction of--
       (i) a State-licensed loan originator; or
       (ii) a registered loan originator.
       (B) Clerical or support duties.--For purposes of 
     subparagraph (A), the term ``clerical or support duties'' may 
     include--
       (i) the receipt, collection, distribution, and analysis of 
     information common for the processing or underwriting of a 
     residential mortgage loan; and
       (ii) communicating with a consumer to obtain the 
     information necessary for the processing or underwriting of a 
     loan, to the extent that such communication does not include 
     offering or negotiating loan rates or terms, or counseling 
     consumers about residential mortgage loan rates or terms.
       (5) Nationwide mortgage licensing system and registry.--The 
     term ``Nationwide

[[Page 1440]]

     Mortgage Licensing System and Registry'' means a mortgage 
     licensing system developed and maintained by the Conference 
     of State Bank Supervisors and the American Association of 
     Residential Mortgage Regulators for the State licensing and 
     registration of State-licensed loan originators and the 
     registration of registered loan originators or any system 
     established by the Secretary under section 9.
       (6) Registered loan originator.--The term ``registered loan 
     originator'' means any individual who--
       (A) meets the definition of loan originator and is an 
     employee of a depository institution or a wholly-owned 
     subsidiary of a depository institution; and
       (B) is registered with, and maintains a unique identifier 
     through, the Nationwide Mortgage Licensing System and 
     Registry.
       (7) Residential mortgage loan.--The term ``residential 
     mortgage loan'' means any loan primarily for personal, 
     family, or household use that is secured by a mortgage, deed 
     of trust, or other equivalent consensual security interest on 
     a dwelling (as defined in section 103(v) of the Truth in 
     Lending Act) or residential real estate upon which is 
     constructed or intended to be constructed a dwelling (as so 
     defined).
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (9) State-licensed loan originator.--The term ``State-
     licensed loan originator'' means any individual who--
       (A) is a loan originator;
       (B) is not an employee of a depository institution or any 
     wholly-owned subsidiary of a depository institution; and
       (C) is licensed by a State or by the Secretary under 
     section 8 and registered as a loan originator with, and 
     maintains a unique identifier through, the Nationwide 
     Mortgage Licensing System and Registry.
       (10) Subprime mortgage.--The term ``subprime mortgage'' 
     means a residential mortgage loan--
       (A) that is secured by real property that is used or 
     intended to be used as a principal dwelling;
       (B) that is typically offered to borrowers having weakened 
     credit histories and reduced repayment capacity, as measured 
     by lower credit scores, debt-to-income ratios, and other 
     relevant criteria; and
       (C) the characteristics of which may include--
       (i) low initial payments based on a fixed introductory rate 
     that expires after a short period and then adjusts to a 
     variable index rate plus a margin for the remaining term of 
     the loan;
       (ii) very high or no limits on how much the payment amount 
     or the interest rate may increase (referred to as ``payment 
     caps'' or ``rate caps'') on reset dates;
       (iii) limited or no documentation of the income of the 
     borrower;
       (iv) product features likely to result in frequent 
     refinancing to maintain an affordable monthly payment; and
       (v) substantial prepayment penalties or prepayment 
     penalties that extend beyond the initial fixed interest rate 
     period.
       (11) Unique identifier.--The term ``unique identifier'' 
     means a number or other identifier that--
       (A) permanently identifies a loan originator; and
       (B) is assigned by protocols established by the Nationwide 
     Mortgage Licensing System and Registry and the Federal 
     banking agencies to facilitate electronic tracking of loan 
     originators and uniform identification of, and public access 
     to, the employment history of and the publicly adjudicated 
     disciplinary and enforcement actions against loan 
     originators.

     SEC. 4. LICENSE OR REGISTRATION REQUIRED.

       (a) In General.--An individual may not engage in the 
     business of a loan originator without first--
       (1) obtaining and maintaining, through an annual renewal--
       (A) a registration as a registered loan originator; or
       (B) a license and registration as a State-licensed loan 
     originator; and
       (2) obtaining a unique identifier.
       (b) Loan Processors and Underwriters.--
       (1) Supervised loan processors and underwriters.--A loan 
     processor or underwriter who does not represent to the 
     public, through advertising or other means of communicating 
     or providing information (including the use of business 
     cards, stationery, brochures, signs, rate lists, or other 
     promotional items), that such individual can or will perform 
     any of the activities of a loan originator shall not be 
     required to be a State-licensed loan originator or a 
     registered loan originator.
       (2) Independent contractors.--A loan processor or 
     underwriter may not work as an independent contractor unless 
     such processor or underwriter is a State-licensed loan 
     originator or a registered loan originator.

     SEC. 5. STATE LICENSE AND REGISTRATION APPLICATION AND 
                   ISSUANCE.

       (a) Background Checks.--In connection with an application 
     to any State for licensing and registration as a State-
     licensed loan originator, the applicant shall, at a minimum, 
     furnish to the Nationwide Mortgage Licensing System and 
     Registry information concerning the applicant's identity, 
     including--
       (1) fingerprints for submission to the Federal Bureau of 
     Investigation, and any governmental agency or entity 
     authorized to receive such information for a State and 
     national criminal history background check; and
       (2) personal history and experience, including 
     authorization for the System to obtain--
       (A) an independent credit report obtained from a consumer 
     reporting agency described in section 603(p) of the Fair 
     Credit Reporting Act; and
       (B) information related to any administrative, civil or 
     criminal findings by any governmental jurisdiction.
       (b) Issuance of License.--The minimum standards for 
     licensing and registration as a State-licensed loan 
     originator shall include the following:
       (1) The applicant has never had a loan originator or 
     similar license revoked in any governmental jurisdiction.
       (2) The applicant has never been convicted of, or pled 
     guilty or nolo contendere to, a felony in a domestic, 
     foreign, or military court.
       (3) The applicant has demonstrated financial 
     responsibility, character, and general fitness such as to 
     command the confidence of the community and to warrant a 
     determination that the loan originator will operate honestly, 
     fairly, and efficiently within the purposes of this Act.
       (4) The applicant has completed the pre-licensing education 
     requirement described in subsection (c).
       (5) The applicant has passed a written test that meets the 
     test requirement described in subsection (d).
       (c) Pre-Licensing Education of Loan Originators.--
       (1) Minimum educational requirements.--In order to meet the 
     pre-licensing education requirement referred to in subsection 
     (b)(4), a person shall complete at least 20 hours of 
     education approved in accordance with paragraph (2), which 
     shall include at least--
       (A) 3 hours of Federal law and regulations;
       (B) 3 hours of ethics, which shall include instruction on 
     fraud, consumer protection, and fair lending issues; and
       (C) 2 hours of training related to lending standards for 
     the subprime mortgage marketplace.
       (2) Approved educational courses.--For purposes of 
     paragraph (1), pre-licensing education courses shall be 
     reviewed, and approved by the Nationwide Mortgage Licensing 
     System and Registry.
       (3) Limitation and standards.--
       (A) Limitation.--To maintain the independence of the 
     approval process, the Nationwide Mortgage Licensing System 
     and Registry shall not directly or indirectly offer pre-
     licensure educational courses for loan originators.
       (B) Standards.--In approving courses under this section, 
     the Nationwide Mortgage Licensing System and Registry shall 
     apply reasonable standards in the review and approval of 
     courses.
       (d) Testing of Loan Originators.--
       (1) In general.--In order to meet the written test 
     requirement referred to in subsection (b)(5), an individual 
     shall pass, in accordance with the standards established 
     under this subsection, a qualified written test developed by 
     the Nationwide Mortgage Licensing System and Registry and 
     administered by an approved test provider.
       (2) Qualified test.--A written test shall not be treated as 
     a qualified written test for purposes of paragraph (1) 
     unless--
       (A) the test consists of a minimum of 100 questions; and
       (B) the test adequately measures the applicant's knowledge 
     and comprehension in appropriate subject areas, including--
       (i) ethics;
       (ii) Federal law and regulation pertaining to mortgage 
     origination;
       (iii) State law and regulation pertaining to mortgage 
     origination; and
       (iv) Federal and State law and regulation, including 
     instruction on fraud, consumer protection, subprime mortgage 
     marketplace, and fair lending issues.
       (3) Minimum competence.--
       (A) Passing score.--An individual shall not be considered 
     to have passed a qualified written test unless the individual 
     achieves a test score of not less than 75 percent correct 
     answers to questions.
       (B) Initial retests.--An individual may retake a test 3 
     consecutive times with each consecutive taking occurring in 
     less than 14 days after the preceding test.
       (C) Subsequent retests.--After 3 consecutive tests, an 
     individual shall wait at least 14 days before taking the test 
     again.
       (D) Retest after lapse of license.--A State-licensed loan 
     originator who fails to maintain a valid license for a period 
     of 5 years or longer shall retake the test, not taking into 
     account any time during which such individual is a registered 
     loan originator.
       (e) Mortgage Call Reports.--Each mortgage licensee shall 
     submit to the Nationwide Mortgage Licensing System and 
     Registry reports of condition, which shall be in such form 
     and shall contain such information as the Nationwide Mortgage 
     Licensing System and Registry may require.

[[Page 1441]]



     SEC. 6. STANDARDS FOR STATE LICENSE RENEWAL.

       (a) In General.--The minimum standards for license renewal 
     for State-licensed loan originators shall include the 
     following:
       (1) The loan originator continues to meet the minimum 
     standards for license issuance.
       (2) The loan originator has satisfied the annual continuing 
     education requirements described in subsection (b).
       (b) Continuing Education for State-Licensed Loan 
     Originators.--
       (1) In general.--In order to meet the annual continuing 
     education requirements referred to in subsection (a)(2), a 
     State-licensed loan originator shall complete at least 8 
     hours of education approved in accordance with paragraph (2), 
     which shall include at least--
       (A) 3 hours of Federal law and regulations;
       (B) 2 hours of ethics, which shall include instruction on 
     fraud, consumer protection, and fair lending issues; and
       (C) 2 hours of training related to lending standards for 
     the subprime mortgage marketplace.
       (2) Approved educational courses.--For purposes of 
     paragraph (1), continuing education courses shall be 
     reviewed, and approved by the Nationwide Mortgage Licensing 
     System and Registry.
       (3) Calculation of continuing education credits.--A State-
     licensed loan originator--
       (A) may only receive credit for a continuing education 
     course in the year in which the course is taken; and
       (B) may not take the same approved course in the same or 
     successive years to meet the annual requirements for 
     continuing education.
       (4) Instructor credit.--A State-licensed loan originator 
     who is approved as an instructor of an approved continuing 
     education course may receive credit for the originator's own 
     annual continuing education requirement at the rate of 2 
     hours credit for every 1 hour taught.
       (5) Limitation and standards.--
       (A) Limitation.--To maintain the independence of the 
     approval process, the Nationwide Mortgage Licensing System 
     and Registry shall not directly or indirectly offer any 
     continuing education courses for loan originators.
       (B) Standards.--In approving courses under this section, 
     the Nationwide Mortgage Licensing System and Registry shall 
     apply reasonable standards in the review and approval of 
     courses.

     SEC. 7. SYSTEM OF REGISTRATION ADMINISTRATION BY FEDERAL 
                   BANKING AGENCIES.

       (a) Development.--
       (1) In general.--The Federal banking agencies shall 
     jointly, through the Federal Financial Institutions 
     Examination Council, develop and maintain a system for 
     registering employees of depository institutions or 
     subsidiaries of depository institutions as registered loan 
     originators with the Nationwide Mortgage Licensing System and 
     Registry. The system shall be implemented before the end of 
     the 1-year period beginning on the date of the enactment of 
     this Act.
       (2) Registration requirements.--In connection with the 
     registration of any loan originator who is an employee of a 
     depository institution or a wholly-owned subsidiary of a 
     depository institution with the Nationwide Mortgage Licensing 
     System and Registry, the appropriate Federal banking agency 
     shall, at a minimum, furnish or cause to be furnished to the 
     Nationwide Mortgage Licensing System and Registry information 
     concerning the employees's identity, including--
       (A) fingerprints for submission to the Federal Bureau of 
     Investigation, and any governmental agency or entity 
     authorized to receive such information for a State and 
     national criminal history background check; and
       (B) personal history and experience, including 
     authorization for the Nationwide Mortgage Licensing System 
     and Registry to obtain information related to any 
     administrative, civil or criminal findings by any 
     governmental jurisdiction.
       (b) Coordination.--
       (1) Unique identifier.--The Federal banking agencies, 
     through the Financial Institutions Examination Council, shall 
     coordinate with the Nationwide Mortgage Licensing System and 
     Registry to establish protocols for assigning a unique 
     identifier to each registered loan originator that will 
     facilitate electronic tracking and uniform identification of, 
     and public access to, the employment history of and publicly 
     adjudicated disciplinary and enforcement actions against loan 
     originators.
       (2) Nationwide mortgage licensing system and registry 
     development.--To facilitate the transfer of information 
     required by subsection (a)(2), the Nationwide Mortgage 
     Licensing System and Registry shall coordinate with the 
     Federal banking agencies, through the Financial Institutions 
     Examination Council, concerning the development and 
     operation, by such System and Registry, of the registration 
     functionality and data requirements for loan originators.
       (c) Consideration of Factors and Procedures.--In 
     establishing the registration procedures under subsection (a) 
     and the protocols for assigning a unique identifier to a 
     registered loan originator, the Federal banking agencies 
     shall make such de minimis exceptions as may be appropriate 
     to paragraphs (1)(A) and (2) of section 4(a), shall make 
     reasonable efforts to utilize existing information to 
     minimize the burden of registering loan originators, and 
     shall consider methods for automating the process to the 
     greatest extent practicable consistent with the purposes of 
     this Act.

     SEC. 8. SECRETARY OF HOUSING AND URBAN DEVELOPMENT BACKUP 
                   AUTHORITY TO ESTABLISH A LOAN ORIGINATOR 
                   LICENSING SYSTEM.

       (a) Back up Licensing System.--If, by the end of the 1-year 
     period, or the 2-year period in the case of a State whose 
     legislature meets only biennially, beginning on the date of 
     the enactment of this Act or at any time thereafter, the 
     Secretary determines that a State does not have in place by 
     law or regulation a system for licensing and registering loan 
     originators that meets the requirements of sections 5 and 6 
     and subsection (d) of this section, or does not participate 
     in the Nationwide Mortgage Licensing System and Registry, the 
     Secretary shall provide for the establishment and maintenance 
     of a system for the licensing and registration by the 
     Secretary of loan originators operating in such State as 
     State-licensed loan originators.
       (b) Licensing and Registration Requirements.--The system 
     established by the Secretary under subsection (a) for any 
     State shall meet the requirements of sections 5 and 6 for 
     State-licensed loan originators.
       (c) Unique Identifier.--The Secretary shall coordinate with 
     the Nationwide Mortgage Licensing System and Registry to 
     establish protocols for assigning a unique identifier to each 
     loan originator licensed by the Secretary as a State-licensed 
     loan originator that will facilitate electronic tracking and 
     uniform identification of, and public access to, the 
     employment history of and the publicly adjudicated 
     disciplinary and enforcement actions against loan 
     originators.
       (d) State Licensing Law Requirements.--For purposes of this 
     section, the law in effect in a State meets the requirements 
     of this subsection if the Secretary determines the law 
     satisfies the following minimum requirements:
       (1) A State loan originator supervisory authority is 
     maintained to provide effective supervision and enforcement 
     of such law, including the suspension, termination, or 
     nonrenewal of a license for a violation of State or Federal 
     law.
       (2) The State loan originator supervisory authority ensures 
     that all State-licensed loan originators operating in the 
     State are registered with Nationwide Mortgage Licensing 
     System and Registry.
       (3) The State loan originator supervisory authority is 
     required to regularly report violations of such law, as well 
     as enforcement actions and other relevant information, to the 
     Nationwide Mortgage Licensing System and Registry.
       (e) Temporary Extension of Period.--The Secretary may 
     extend, by not more than 12 months, the 1-year or 2-year 
     period, as the case may be, referred to in subsection (a) for 
     the licensing of loan originators in any State under a State 
     licensing law that meets the requirements of sections 5 and 6 
     and subsection (d) if the Secretary determines that such 
     State is making a good faith effort to establish a State 
     licensing law that meets such requirements, license mortgage 
     originators under such law, and register such originators 
     with the Nationwide Mortgage Licensing System and Registry.
       (f) Limitation on HUD-Licensed Loan Originators.--Any loan 
     originator who is licensed by the Secretary under a system 
     established under this section for any State may not use such 
     license to originate loans in any other State.
       (g) Contracting Authority.--The Secretary may enter into 
     contracts with qualified independent parties, as necessary to 
     efficiently fulfill the obligations of the Secretary under 
     this Section.

     SEC. 9. BACKUP AUTHORITY TO ESTABLISH A NATIONWIDE MORTGAGE 
                   LICENSING AND REGISTRY SYSTEM.

       If at any time the Secretary determines that the Nationwide 
     Mortgage Licensing System and Registry is failing to meet the 
     requirements and purposes of this Act for a comprehensive 
     licensing, supervisory, and tracking system for loan 
     originators, the Secretary shall establish and maintain such 
     a system to carry out the purposes of this Act and the 
     effective registration and regulation of loan originators.

     SEC. 10. FEES.

       The Federal banking agencies, the Secretary, and the 
     Nationwide Mortgage Licensing System and Registry may charge 
     reasonable fees to cover the costs of maintaining and 
     providing access to information from the Nationwide Mortgage 
     Licensing System and Registry, to the extent that such fees 
     are not charged to consumers for access to such system and 
     registry.

     SEC. 11. BACKGROUND CHECKS OF LOAN ORIGINATORS.

       (a) Access to Records.--Notwithstanding any other provision 
     of law, in providing identification and processing functions, 
     the Attorney General shall provide access to all criminal 
     history information to the appropriate State officials 
     responsible for regulating State-licensed loan originators to 
     the

[[Page 1442]]

     extent criminal history background checks are required under 
     the laws of the State for the licensing of such loan 
     originators.
       (b) Agent.--For the purposes of this section and in order 
     to reduce the points of contact which the Federal Bureau of 
     Investigation may have to maintain for purposes of subsection 
     (a), the Conference of State Bank Supervisors or a wholly 
     owned subsidiary may be used as a channeling agent of the 
     States for requesting and distributing information between 
     the Department of Justice and the appropriate State agencies.

     SEC. 12. CONFIDENTIALITY OF INFORMATION.

       (a) System Confidentiality.--Except as otherwise provided 
     in this section, any requirement under Federal or State law 
     regarding the privacy or confidentiality of any information 
     or material provided to the Nationwide Mortgage Licensing 
     System and Registry or a system established by the Secretary 
     under section 9, and any privilege arising under Federal or 
     State law (including the rules of any Federal or State court) 
     with respect to such information or material, shall continue 
     to apply to such information or material after the 
     information or material has been disclosed to the system. 
     Such information and material may be shared with all State 
     and Federal regulatory officials with mortgage industry 
     oversight authority without the loss of privilege or the loss 
     of confidentiality protections provided by Federal and State 
     laws.
       (b) Nonapplicability of Certain Requirements.--Information 
     or material that is subject to a privilege or confidentiality 
     under subsection (a) shall not be subject to--
       (1) disclosure under any Federal or State law governing the 
     disclosure to the public of information held by an officer or 
     an agency of the Federal Government or the respective State; 
     or
       (2) subpoena or discovery, or admission into evidence, in 
     any private civil action or administrative process, unless 
     with respect to any privilege held by the Nationwide Mortgage 
     Licensing System and Registry or the Secretary with respect 
     to such information or material, the person to whom such 
     information or material pertains waives, in whole or in part, 
     in the discretion of such person, that privilege.
       (c) Coordination With Other Law.--Any State law, including 
     any State open record law, relating to the disclosure of 
     confidential supervisory information or any information or 
     material described in subsection (a) that is inconsistent 
     with subsection (a) shall be superseded by the requirements 
     of such provision to the extent State law provides less 
     confidentiality or a weaker privilege.
       (d) Public Access to Information.--This section shall not 
     apply with respect to the information or material relating to 
     the employment history of, and publicly adjudicated 
     disciplinary and enforcement actions against, loan 
     originators that is included in Nationwide Mortgage Licensing 
     System and Registry for access by the public.

     SEC. 13. LIABILITY PROVISIONS.

       The Secretary, any State official or agency, any Federal 
     banking agency, or any organization serving as the 
     administrator of the Nationwide Mortgage Licensing System and 
     Registry or a system established by the Secretary under 
     section 9, or any officer or employee of any such entity, 
     shall not be subject to any civil action or proceeding for 
     monetary damages by reason of the good-faith action or 
     omission of any officer or employee of any such entity, while 
     acting within the scope of office or employment, relating to 
     the collection, furnishing, or dissemination of information 
     concerning persons who are loan originators or are applying 
     for licensing or registration as loan originators.

     SEC. 14. ENFORCEMENT UNDER HUD BACKUP LICENSING SYSTEM.

       (a) Summons Authority.--The Secretary may--
       (1) examine any books, papers, records, or other data of 
     any loan originator operating in any State which is subject 
     to a licensing system established by the Secretary under 
     section 8; and
       (2) summon any loan originator referred to in paragraph (1) 
     or any person having possession, custody, or care of the 
     reports and records relating to such loan originator, to 
     appear before the Secretary or any delegate of the Secretary 
     at a time and place named in the summons and to produce such 
     books, papers, records, or other data, and to give testimony, 
     under oath, as may be relevant or material to an 
     investigation of such loan originator for compliance with the 
     requirements of this Act.
       (b) Examination Authority.--
       (1) In general.--If the Secretary establishes a licensing 
     system under section 8 for any State, the Secretary shall 
     appoint examiners for the purposes of administering such 
     section.
       (2) Power to examine.--Any examiner appointed under 
     paragraph (1) shall have power, on behalf of the Secretary, 
     to make any examination of any loan originator operating in 
     any State which is subject to a licensing system established 
     by the Secretary under section 8 whenever the Secretary 
     determines an examination of any loan originator is necessary 
     to determine the compliance by the originator with this Act.
       (3) Report of examination.--Each examiner appointed under 
     paragraph (1) shall make a full and detailed report of 
     examination of any loan originator examined to the Secretary.
       (4) Administration of oaths and affirmations; evidence.--In 
     connection with examinations of loan originators operating in 
     any State which is subject to a licensing system established 
     by the Secretary under section 8, or with other types of 
     investigations to determine compliance with applicable law 
     and regulations, the Secretary and examiners appointed by the 
     Secretary may administer oaths and affirmations and examine 
     and take and preserve testimony under oath as to any matter 
     in respect to the affairs of any such loan originator.
       (5) Assessments.--The cost of conducting any examination of 
     any loan originator operating in any State which is subject 
     to a licensing system established by the Secretary under 
     section 8 shall be assessed by the Secretary against the loan 
     originator to meet the Secretary's expenses in carrying out 
     such examination.
       (c) Cease and Desist Proceeding.--
       (1) Authority of secretary.--If the Secretary finds, after 
     notice and opportunity for hearing, that any person is 
     violating, has violated, or is about to violate any provision 
     of this Act, or any regulation thereunder, with respect to a 
     State which is subject to a licensing system established by 
     the Secretary under section 8, the Secretary may publish such 
     findings and enter an order requiring such person, and any 
     other person that is, was, or would be a cause of the 
     violation, due to an act or omission the person knew or 
     should have known would contribute to such violation, to 
     cease and desist from committing or causing such violation 
     and any future violation of the same provision, rule, or 
     regulation. Such order may, in addition to requiring a person 
     to cease and desist from committing or causing a violation, 
     require such person to comply, or to take steps to effect 
     compliance, with such provision or regulation, upon such 
     terms and conditions and within such time as the Secretary 
     may specify in such order. Any such order may, as the 
     Secretary deems appropriate, require future compliance or 
     steps to effect future compliance, either permanently or for 
     such period of time as the Secretary may specify, with such 
     provision or regulation with respect to any loan originator.
       (2) Hearing.--The notice instituting proceedings pursuant 
     to paragraph (1) shall fix a hearing date not earlier than 30 
     days nor later than 60 days after service of the notice 
     unless an earlier or a later date is set by the Secretary 
     with the consent of any respondent so served.
       (3) Temporary order.--Whenever the Secretary determines 
     that the alleged violation or threatened violation specified 
     in the notice instituting proceedings pursuant to paragraph 
     (1), or the continuation thereof, is likely to result in 
     significant dissipation or conversion of assets, significant 
     harm to consumers, or substantial harm to the public interest 
     prior to the completion of the proceedings, the Secretary may 
     enter a temporary order requiring the respondent to cease and 
     desist from the violation or threatened violation and to take 
     such action to prevent the violation or threatened violation 
     and to prevent dissipation or conversion of assets, 
     significant harm to consumers, or substantial harm to the 
     public interest as the Secretary deems appropriate pending 
     completion of such proceedings. Such an order shall be 
     entered only after notice and opportunity for a hearing, 
     unless the Secretary determines that notice and hearing prior 
     to entry would be impracticable or contrary to the public 
     interest. A temporary order shall become effective upon 
     service upon the respondent and, unless set aside, limited, 
     or suspended by the Secretary or a court of competent 
     jurisdiction, shall remain effective and enforceable pending 
     the completion of the proceedings.
       (4) Review of temporary orders.--
       (A) Review by secretary.--At any time after the respondent 
     has been served with a temporary cease-and-desist order 
     pursuant to paragraph (3), the respondent may apply to the 
     Secretary to have the order set aside, limited, or suspended. 
     If the respondent has been served with a temporary cease-and-
     desist order entered without a prior hearing before the 
     Secretary, the respondent may, within 10 days after the date 
     on which the order was served, request a hearing on such 
     application and the Secretary shall hold a hearing and render 
     a decision on such application at the earliest possible time.
       (B) Judicial review.--Within--
       (i) 10 days after the date the respondent was served with a 
     temporary cease-and-desist order entered with a prior hearing 
     before the Secretary; or
       (ii) 10 days after the Secretary renders a decision on an 
     application and hearing under paragraph (1), with respect to 
     any temporary cease-and-desist order entered without a prior 
     hearing before the Secretary,

     the respondent may apply to the United States district court 
     for the district in which the respondent resides or has its 
     principal place of business, or for the District of Columbia, 
     for an order setting aside, limiting, or suspending the 
     effectiveness or enforcement of the order, and the court 
     shall have jurisdiction to enter such an order. A respondent 
     served with a temporary cease-and-

[[Page 1443]]

     desist order entered without a prior hearing before the 
     Secretary may not apply to the court except after hearing and 
     decision by the Secretary on the respondent's application 
     under subparagraph (A).
       (C) No automatic stay of temporary order.--The commencement 
     of proceedings under subparagraph (B) shall not, unless 
     specifically ordered by the court, operate as a stay of the 
     Secretary's order.
       (5) Authority of the secretary to prohibit persons from 
     serving as loan originators.--In any cease-and-desist 
     proceeding under paragraph (1), the Secretary may issue an 
     order to prohibit, conditionally or unconditionally, and 
     permanently or for such period of time as the Secretary shall 
     determine, any person who has violated this Act or 
     regulations thereunder, from acting as a loan originator if 
     the conduct of that person demonstrates unfitness to serve as 
     a loan originator.
       (d) Authority of the Secretary To Assess Money Penalties.--
       (1) In general.--The Secretary may impose a civil penalty 
     on a loan originator operating in any State which is subject 
     to licensing system established by the Secretary under 
     section 8, if the Secretary finds, on the record after notice 
     and opportunity for hearing, that such loan originator has 
     violated or failed to comply with any requirement of this Act 
     or any regulation prescribed by the Secretary under this Act 
     or order issued under subsection (c).
       (2) Maximum amount of penalty.--The maximum amount of 
     penalty for each act or omission described in paragraph (1) 
     shall be $5,000 for each day the violation continues.

     SEC. 15. PREEMPTION OF STATE LAW.

       Nothing in this Act may be construed to preempt the law of 
     any State, to the extent that such State law provides greater 
     protection to consumers than is provided under this Act.

     SEC. 16. REPORTS AND RECOMMENDATIONS TO CONGRESS.

       (a) Annual Reports.--Not later than 1 year after the date 
     of enactment of this Act, and annually thereafter, the 
     Secretary shall submit a report to Congress on the 
     effectiveness of the provisions of this Act, including 
     legislative recommendations, if any, for strengthening 
     consumer protections, enhancing examination standards, and 
     streamlining communication between all stakeholders involved 
     in residential mortgage loan origination and processing.
       (b) Legislative Recommendations.--Not later than 6 months 
     after the date of enactment of this Act, the Secretary shall 
     make recommendations to Congress on legislative reforms to 
     the Real Estate Settlement Procedures Act of 1974, that the 
     Secretary deems appropriate to promote more transparent 
     disclosures, allowing consumers to better shop and compare 
     mortgage loan terms and settlement costs.

     SEC. 17. STUDY AND REPORTS ON DEFAULTS AND FORECLOSURES.

       (a) Study Required.--The Secretary shall conduct an 
     extensive study of the root causes of default and foreclosure 
     of home loans, using as much empirical data as is available.
       (b) Preliminary Report to Congress.--Not later than 6 
     months after the date of enactment of this Act, the Secretary 
     shall submit to Congress a preliminary report regarding the 
     study required by this section.
       (c) Final Report to Congress.--Not later than 12 months 
     after the date of enactment of this Act, the Secretary shall 
     submit to Congress a final report regarding the results of 
     the study required by this section, which shall include any 
     recommended legislation relating to the study, and 
     recommendations for best practices and for a process to 
     provide targeted assistance to populations with the highest 
     risk of potential default or foreclosure.
                                 ______
                                 
      By Mr. LUGAR:
  S. 2597. A bill to authorize the extension of nondiscriminatory 
treatment (normal trade relations treatment) to the products of 
Moldova; to the Committee on Finance.
  Mr. LUGAR. Mr. President, I rise today to introduce legislation 
designed to extend permanent normal trade relations to Moldova. Moldova 
is still subject to the provisions of the Jackson-Vanik amendment to 
the Trade Act of 1974, which sanctions nations for failure to comply 
with freedom of emigration requirements. This bill would repeal 
permanently the application of Jackson-Vanik to Moldova.
  Moldova is a small country located between Ukraine and Romania. 
Throughout the Cold War it was a part of the Soviet Union. It gained 
its independence from the Soviet Union on August 27, 1991. The U.S. has 
supported Moldova in its journey toward democracy and sovereignty.
  The U.S. enjoys good relations with Moldova and has encouraged 
Moldovan efforts to integrate with Euro-Atlantic institutions. Moldova 
is an active participant in Guam, Georgia, Ukraine, Azerbaijan and 
Moldova, a group of countries that has recently concluded a new trade 
agreement with the EU.
  Since declaring independence from the Soviet Union in 1992, Moldova 
has enacted a series of democratic and free market reforms. In 2001, 
Moldova became a member of the World Trade Organization. Until the U.S. 
terminates application of Jackson-Vanik on Moldova, the U.S. will not 
benefit from Moldova's market access commitments nor can it resort to 
WTO dispute resolution mechanisms. While all other WTO members 
currently enjoy these benefits, the U.S. does not.
  The Republic of Moldova has been evaluated every year and granted 
normal trade relations with the U.S. through annual presidential 
waivers from the effects of Jackson-Vanik. The Moldovan constitution 
guarantees its citizens the right to emigrate and this right is 
respected in practice. Most emigration restrictions were eliminated in 
1991 and virtually no problems with emigration have been reported in 
the 16 years since independence. More specifically, Moldova does not 
impose emigration restrictions on members of the Jewish community. 
Synagogues function openly and without harassment. As a result, the 
Administration finds that Moldova is in full compliance with Jackson-
Vanik's provisions.
  Since declaring independence from the Soviet Union in 1992, Moldova 
has enacted a series of democratic and free market reforms. 
Parliamentary elections in 2005 and local elections in 2007 generally 
complied with international standards for democratic elections. Moldova 
has also contributed constructively towards a resolution of the long-
standing separatist conflict in the country's Transniestria region, 
most recently by proposing a series of confidence-building measures and 
working groups.
  The U.S. and Moldova have established a strong record of achievement 
in security cooperation. In 1997 the Nunn-Lugar Cooperative Threat 
Reduction Program responded to a Moldovan request for assistance. The 
U.S. purchased and secured 14 nuclear-capable MiG-29Cs from Moldova. 
These fighter aircraft were built by the former Soviet Union to launch 
nuclear weapons. Moldova expressed concern that these aircraft were 
unsecure due to the lack of funds and equipment necessary to ensure 
they were not stolen or smuggled out of the country. Specifically, 
emissaries from Iran had shown great interest and had attempted to 
acquire the aircraft. These planes were not destroyed. They were 
disassembled and shipped to Wright Patterson Air Force Base because 
they can be used by American experts for research purposes.
  Moldova has made small, but important, troop contributions in Iraq. 
These contributions include significant demining capabilities and 
contingents of combat troops. I am pleased that the U.S. remains 
prepared to assist in weapons and ammunition disposal and force 
relocation assistance to help deal with the costs of military 
realignments in Moldova and to assist with military downsizing and 
reforms.
  One of the areas where we can deepen U.S.-Moldovan relations is 
bilateral trade. In light of its adherence to freedom of emigration 
requirements, compliance with threat reduction and cooperation in the 
global war on terrorism, the products of Moldova should not be subject 
to the sanctions of Jackson-Vanik. The U.S. must remain committed and 
engaged in assisting Moldova in pursuing economic and development 
reforms. The government in Chisinau still has important work to do in 
these critical areas. The support and encouragement of the U.S. and the 
international community will be key to encouraging the Government of 
Moldova to take the necessary steps to initiate reform. The permanent 
waiver of Jackson-Vanik and establishment of permanent normal trade 
relations will be the foundation on which further progress in a 
burgeoning economic and energy partnership can be made.
  I am hopeful that my colleagues will join me in supporting this 
important legislation. It is essential that we act promptly to bolster 
this important relationship and promote stability in this region.

[[Page 1444]]


                                 ______
                                 
      By Mr. DORGAN (for himself, Mr. Bingaman, Mr. Levin, Mr. Kerry, 
        Ms. Collins, Mr. Lieberman, and Mr. Wyden):
  S. 2598. A bill to increase the supply and lower the cost of 
petroleum by temporarily suspending the acquisition of petroleum for 
the Strategic Petroleum Reserve; to the Committee on Energy and Natural 
Resources.
  Mr. DORGAN. Mr. President, today I am pleased to introduce the 
Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act 
of 2007. This bill directs the Secretary of Energy to suspend filling 
of the U.S. Strategic Petroleum Reserve, SPR, for 1 year. I appreciate 
that Senators Bingaman, Levin, Kerry, Collins, Lieberman, and Wyden 
have joined me as original cosponsors of this legislation. This bill 
directs the Secretary to stop filling the reserve through direct 
purchase, royalty-in-kind or any other measures. The secretary may only 
resume filling if the price of a barrel of crude oil drops below $50 
per barrel during the remainder of 2008.
  The price of a barrel of oil is reaching record highs and global 
supplies of oil continue to shrink. During this period of volatile 
markets and short supply, it makes no sense to me for the U.S. 
Government to continue to take highly valuable crude oil, especially 
light sweet crude, off the market to store underground in a reserve 
that is at least 96 percent full. Continuing to ``top off'' the 
Strategic Petroleum Reserve with highly valuable crude oil is putting 
upward pressure on oil prices and raising energy prices for consumers.
  I believe that we must take a ``time out'' from filling the reserve 
in order to send a signal to the market to reduce rising energy prices 
that are hitting American consumers' pocketbooks. Lowering energy costs 
will put additional money back into consumers' hands and will help 
provide a real stimulus to our economy in my judgment.
  Historically, the average price of oil used to fill the Strategic 
Petroleum Reserve has been about $27 per barrel. The Administration is 
now filling the Reserve with oil that averages over $90 per barrel, 
including highly sought after light sweet crude. This is a bad deal for 
American taxpayers and consumers.
  On January 8, 2008, the Secretary of Energy sent me a letter stating 
that our Strategic Petroleum Reserve contains only 57 days of import 
protection and that the 50,000 barrels per day they are filling with is 
a small amount of the oil used on the global market daily. This is only 
part of the story. The fact is that the SPR, combined with our private 
oil stocks and refining inventories, total more than 118 days of import 
protection. The current levels in our strategic petroleum stocks are 
more than adequate to meet our international treaty obligations 
requiring 90 days of import protection for all OECD countries. I also 
disagree that taking 50,000 barrels per day off the market, especially 
light sweet crude, has no impact on energy prices. During the Clinton 
administration, Congress signaled that it wanted more than $200 million 
sold from the SPR in 1996, the price of oil dropped precipitously in 
the market. The market looks at many factors, including our filling of 
the SPR. This is another reason we can afford to temporarily suspend 
filling the Strategic Petroleum Reserve.
  Further, the Energy Policy Act of 2005 provides directional guidance 
to expand the Strategic Petroleum Reserve. The provision in law clearly 
states that filling the reserve must be achieved ``without incurring 
excessive cost or appreciably affecting the price of petroleum products 
to consumers.'' I think filling the Strategic Petroleum Reserve in 
today's environment is indeed impacting the price of petroleum so that 
we must defer filling for now to ease pressure on the market.
  Finally, the Congress enacted and the President signed historic 
legislation in December 2008--the Energy Independence and Security Act 
of 2007. That legislation established a strong foundation to put our 
Nation on an alternative energy security pathway. This includes strong 
fuel economy standards and an expanded renewable fuels standard. 
Conservative estimates provided by the Securing America's Future Energy 
Coalition show that the new legislation would reduce net oil imports by 
1.75 million barrels per day by 2020, increasing to 2.26 million 
barrels per day in 2022 and rising thereafter. These estimates 
represent roughly half of the theoretical SPR drawdown capacity of 4.4 
million barrels per day. They also increase the number of days of 
protection afforded by a given quantity of oil in the SPR. Thus, our 
enactment of historic Energy legislation will, over time, increase the 
insurance value of the SPR, even if the actual inventory level is 
frozen or slightly decreased.
  Let me be clear. I believe maintaining a Strategic Petroleum Reserve 
is in the economic and national security interests of this country. 
However, during this time of record oil prices, rising energy costs for 
consumers, economic downturn and tight global oil supplies, the U.S. 
Government should suspend taking highly valuable oil off the market to 
store underground in the Strategic Petroleum Reserve.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2598

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Strategic Petroleum Reserve 
     Fill Suspension and Consumer Protection Act of 2008''.

     SEC. 2. SUSPENSION OF PETROLEUM ACQUISITION FOR STRATEGIC 
                   PETROLEUM RESERVE.

       (a) In General.--Except as provided in subsection (b) and 
     notwithstanding any other provision of law, during calendar 
     year 2008, the Secretary of Energy shall suspend acquisition 
     of petroleum for the Strategic Petroleum Reserve through the 
     royalty-in-kind program or any other acquisition method.
       (b) Resumption.--The Secretary may resume acquisition of 
     petroleum for the Strategic Petroleum Reserve through the 
     royalty-in-kind program or any other acquisition method under 
     subsection (a) not earlier than 30 days after the date on 
     which the Secretary notifies Congress that the Secretary has 
     determined that the weighted average price of petroleum in 
     the United States for the most recent 90-day period is $50 or 
     less per barrel.
                                 ______
                                 
      By Mr. HARKIN (for himself and Mr. Grassley):
  S. 2600. A bill to provide for the designation of a single ZIP code 
for Windsor Heights, Iowa; to the Committee on Homeland Security and 
Governmental Affairs.
  Mr. HARKIN. Mr. President, today I rise with my colleague from Iowa 
to introduce a bill to provide the town of Windsor Heights, IA, its own 
ZIP code. Currently, the residents of Windsor Heights share three ZIP 
codes with surrounding communities, Des Moines, West Des Moines, and 
Urbandale. Confusion between the ZIP codes and city boundaries has 
caused delays in mail delivery, an increased amount of undelivered 
mail, and numerous complaints from frustrated citizens. Each day 
sensitive materials, including financial statements, credit cards, 
Social Security checks, and passports pass through the mail stream. It 
is imperative that residents are able to rely on the safe and timely 
delivery of these documents.
  The complications from this problem reach beyond mail delivery. 
During the recent Iowa Caucuses, residents living in Windsor Heights 
Precinct 2 were directed to the wrong address when looking for their 
caucus location. Windsor Heights residents who use the 50322 ZIP code--
one which is shared with neighboring Urbandale--were incorrectly 
advised that the caucus location was in Urbandale, rather than Windsor 
Heights. Furthermore, because insurance rates are based on ZIP codes, 
residents pay premiums based on neighboring Des Moines and Urbandale, 
rather than Windsor Heights, making it more difficult for providers to 
sell car insurance to residents.
  City officials have tried in vain for almost 5 years to acquire a ZIP 
code for Windsor Heights. It is my hope that the Senate will quickly 
act upon this legislation to enable them to do so.
                                 ______
                                 
      By Ms. CANTWELL (for herself and Mrs. Murray):

[[Page 1445]]

  S. 2601. A bill to require the Secretary of Agriculture to convey to 
King and Kittitas Counties Fire District No. 51 a certain parcel of 
real property for use as a site for a new Snoqualmie Pass fire and 
rescue station; to the Committee on Energy and Natural Resources.
  Ms. CANTWELL. Mr. President, today I am introducing the Snoqualmie 
Pass Land Conveyance Act, together with Senator Murray. This bill would 
transfer an acre and a half of Forest Service land to the King and 
Kittitas Counties Fire District No. 51, also known as Snoqualmie Pass 
Fire and Rescue. This land would be conveyed at no cost, but would have 
to be used by the Fire District specifically for the construction of a 
new fire station or it would revert back to the Federal Government.
  Snoqualmie Pass Fire and Rescue serves a portion of two counties on 
both sides of the Cascade Mountains along Interstate 90, a community of 
350 full-time residents that peaks to 1,500 during the ski season. 
Additionally, the ski area estimates 20,000 patrons on a busy weekend, 
and the Department of Transportation estimates that up to 60,000 
vehicles travel through the fire district on a busy day making it the 
busiest mountain highway in the country.
  This area is also the major transportation corridor for goods and 
services between eastern and western Washington. The all-volunteer Fire 
Department averages over 300 calls a year with about a 10 percent 
annual increase in call volumes, which is more than triple the amount 
of calls a typical all-volunteer fire department would respond to in a 
year. Mr. Presdient, 84 percent of those incidents are for non-tax 
paying residents. Consequently, the Fire Department has the 
characteristics of a large city with the limited resources of a small 
community.
  In recent years, this area has been the scene of major winter 
snowstorms, multi-vehicle accidents, and even avalanches. The Fire 
District is often the first responder to incidents in the area, which 
is prone to rock slides and avalanches and it is not uncommon for this 
community to be isolated for hours or even days at a time. Several 
thousand people can be stranded at the Pass during those periods when 
the Pass is closed and while the Department of Transportation works 
quickly to get the roads back open, it can be very taxing on local 
resources.
  For decades, the Fire District has been leasing its current site from 
the Forest Service. They operate out of an aging building that was not 
designed to be a fire station. Through their hard work and dedication, 
they have served their community ably despite this building's many 
shortcomings. However, with traffic on the rise and the need for 
emergency services in the area growing, the Fire District needs to move 
to a true fire station.
  The Fire District has identified a nearby site that would better 
serve the public safety needs at the Pass. This location would provide 
easy access to the interstate in either direction, reducing emergency 
response times. The parcel is on Forest Service property, immediately 
adjacent to a freeway interchange, between a frontage road and the 
interstate itself. The parcel was formerly a disposal site during 
construction of the freeway and is now a gravel lot.
  I recognize that the Forest Service does not normally support 
conveyances of land free of charge. However, I believe an exception 
should be made in this particular circumstance because of the important 
public service provided by the Fire District, the heavy traffic and 
emergency calls created by nonresidents in the area, the distance of 
Snoqualmie Pass from other communities with emergency services, and 
because of the high amount of federal land ownership in the area, which 
severely limits the local tax base. In fact, the Forest Service has 
acquired 20,000 acres in King and Kittitas counties at a cost of more 
than $52 million over just the last 10 years.
  Passage of this legislation would not guarantee that a new station 
would be built. The Fire District would have to work hard to gather the 
financing that would be required from State and local sources, as well 
as any applicable Federal grants or loans. However, the conveyance of 
this site at no cost would help this Fire District hold down the 
overall cost of this project.
  I am confident this can be done with little or no impact to the 
environment. Over the last year, following the introduction of this 
legislation in the House of Representatives, H.R. 1285, there were 
ongoing discussions in Washington State to address some lingering 
issues related to this conveyance. I am pleased those discussions 
reached resolution. I am also pleased that discussions with my staff, 
Senator Murray's staff, and staff of Energy and Natural Resources 
Committee led to an amendment to H.R. 1285 before it passed the House 
of Representatives that would better tailor the conveyance to both the 
environmental and the emergency response needs at the Pass by reducing 
the amount of land to be conveyed from 3 acres to 1.5 acres.
  It is my understanding that there are offers of support to construct 
a new fire station from state and local officials, and to mitigate any 
effects of construction, and I support those efforts. To offset any 
potential impacts from construction of a new fire station and to 
improve wildlife connectivity at the pass, I encourage the Forest 
Service to work in collaboration with state and local officials, the 
Cascade Land Conservancy, Snoqualmie Fire District, Sierra Club, and 
Conservation Northwest to identify opportunities for off-site habitat 
acquisition.
  I appreciate the efforts of Senator Murray and my colleagues on the 
Energy and Natural Resources Committee to review this issue and bring 
this bill forward. I look forward to continuing to work with the 
community at the Pass and my colleagues to improve public safety in the 
area.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                S. 2601

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Snoqualmie Pass Land 
     Conveyance Act''.

     SEC. 2. LAND CONVEYANCE, NATIONAL FOREST SYSTEM LAND, 
                   KITTITAS COUNTY, WASHINGTON.

       (a) Conveyance Required.--The Secretary of Agriculture 
     (referred to in this section as the ``Secretary'') shall 
     convey, without consideration, to King and Kittitas Counties 
     Fire District No. 51 of King and Kittitas Counties, 
     Washington (referred to in this section as the ``District''), 
     all right, title, and interest of the United States in and to 
     a parcel of National Forest System land in Kittitas County, 
     Washington, consisting of approximately 1.5 acres within the 
     SW \1/4\ of the SE \1/4\ of sec. 4, T. 22 N., R. 11 E., 
     Willamette meridian, for the purpose of permitting the 
     District to use the parcel as a site for a new Snoqualmie 
     Pass fire and rescue station.
       (b) Reversionary Interest.--
       (1) In general.--If the Secretary determines at any time 
     that the real property conveyed under subsection (a) is not 
     being used in accordance with the purpose of the conveyance 
     specified in that subsection--
       (A) all right, title, and interest in and to the property 
     shall revert, at the option of the Secretary, to the United 
     States; and
       (B) the United States shall have the right of immediate 
     entry onto the property.
       (2) Determination requirements.--A determination of the 
     Secretary under this subsection shall be made on the record 
     after an opportunity for a hearing.
       (c) Survey.--
       (1) In general.--If necessary, the exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (2) Cost.--The cost of a survey under paragraph (1) shall 
     be paid by the District.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers to be appropriate to protect the interests of the 
     United States.
                                 ______
                                 
      By Mr. SALAZAR:
  S. 2602. A bill to amend the Department of the Interior, Environment, 
and Related Agencies appropriations Act, 2008, to terminate the 
authority of the Secretary of the Treasury to deduct amounts from 
certain States; to the Committee on Energy and Natural Resources.

[[Page 1446]]


  Mr. SALAZAR. Mr. President, I rise today to introduce legislation--a 
companion bill will be introduced in the House by my colleagues 
Representatives Salazar and Udall--to restore Colorado's share of oil 
and gas leasing revenue.
  The 2008 Omnibus Appropriations bill includes a provision, requested 
by the Bush Administration, to reduce the share of mineral royalties 
paid to Colorado and other western states. Specifically, the 
administration's proposal to reduce the State's share of mineral 
revenues from 50 percent to 48 percent does not serve the taxpayers who 
fund the government nor does it serve the states that allow energy 
production to happen within their borders. Colorado is blessed with an 
abundance of natural resources, including its deposits of oil and 
natural gas. Our State's economy benefits from the production of these 
resources, and we deserve to continue receiving our fair share of the 
revenues.
  The administration attempts to justify this reduction as necessary to 
defray the administrative costs related to the management of onshore 
leasing activity. We believe this assertion is unfounded and oppose any 
attempt to take money that is rightfully owed to our State in order to 
pay for more Federal bureaucracy. This is money that our state could 
use to help mitigate the effects of increased oil and gas drilling 
activity and for other important state priorities, such as education 
and health care.
  Our legislation repeals the administration's money grab and restores 
each State's share to its full, coequal 50 percent of mineral leasing 
revenues. We cannot allow the Federal government to take oil and gas 
leasing revenues intended to help the communities of Colorado. This 
language was inserted late into last year's omnibus spending bill and 
must be corrected. Our legislation does just that.

                          ____________________