[Congressional Record (Bound Edition), Volume 155 (2009), Part 17]
[Extensions of Remarks]
[Page 23646]
[From the U.S. Government Publishing Office, www.gpo.gov]




             THE MARKET IS RESPONDING TO FAILING MORTGAGES

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                            HON. LAMAR SMITH

                                of texas

                    in the house of representatives

                        Tuesday, October 6, 2009

  Mr. SMITH of Texas. Madam Speaker, one of America's top concerns 
during this difficult economic time has been the frequency of home 
mortgage foreclosures.
  Last week, there was news to encourage us. Efforts by banks, 
borrowers and the Administration to modify troubled mortgages have 
begun to produce much larger numbers of modifications.
  As banks have stabilized their balance sheets and raised fresh 
capital, their officers even have been able to reduce borrowers' 
mortgage principal when they work out loans. Modifications that reduce 
the balances that borrowers owe on their homes have more than tripled.
  Earlier this year, Congress debated legislation to change the 
Bankruptcy Code and force principal reductions on the market. The 
measure was rightly defeated. To send homeowners into bankruptcy is not 
the answer and forced principal reductions will chill future lending.
  Recently, calls for bankruptcy legislation reemerged in the House. 
Last week's news shows once more that the measure is not needed. The 
market has found a better solution.
  Americans need Congress to do something else to help homeowners. 
Let's pass effective legislation to bring growth and jobs back to 
America. That is the better way to help people keep their homes.

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