[Congressional Record (Bound Edition), Volume 155 (2009), Part 5]
[House]
[Page 5763]
[From the U.S. Government Publishing Office, www.gpo.gov]




             LET'S IMPLEMENT SOLUTIONS THAT PRODUCE RESULTS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Kansas (Ms. Jenkins) is recognized for 5 minutes.
  Ms. JENKINS. I know many Americans are struggling to pay their 
monthly mortgage payments. Unemployment is on the rise, yet more than 
90 percent of homeowners are still able to scrimp and save enough each 
month to pay their mortgage.
  Congress and government agencies have thrown billions at this crisis, 
yet we have little to show for it. And President Obama even said in his 
speech last night that the recovery plans will require significant 
additional resources from the Federal Government, probably more than 
what is already set aside. He left the door open to come back and ask 
for more taxpayer dollars to bail out the bad decisions of others, yet 
we have seen little positive impact from the initial expenditure.
  Congress should not be in the business of rewarding bad actors, and 
I'm concerned that is exactly what H.R. 1106, the Helping Families Save 
Their Homes Act of 2009, and the President's plan for the housing 
crisis will do.
  One piece of H.R. 1106 is a cram-down proposal. While the goal of the 
proposal may be admirable, when we see re-default rates of 55 percent 
within only 6 months, is that really solving the problem?
  Lenders from the Second District in Kansas have told me this cram-
down proposal may force an increase in interest rates. How does this 
increased borrowing cost benefit that young married couple looking to 
buy their first home? Not to mention, as I read in Business Week 
yesterday, many times loan modifications can result in higher monthly 
payments.
  I understand exactly the sentiments shared with me by my constituent, 
Craig Grable from Wathena, Kansas. He sent me a letter telling me he 
pays his mortgage on time each month. He is angry that folks who have 
bought houses they could not afford are being rewarded by those housing 
plans.

                              {time}  1645

  He said, ``If the market recovers and he sells that home for a 
profit, he basically is keeping my tax dollars, and that is not 
right.''
  Folks around the country like Craig who made their payments on time 
should not have to pay for the risky loans made by irresponsible 
lenders and speculators who got into loans they could not afford. At a 
minimum before anyone is given government assistance on their mortgage, 
there needs to be a clear set of eligibility standards including income 
verification, proof the borrower has not intentionally defaulted on the 
mortgage in order to benefit from government assistance, and assurances 
that the Federal Government is not subsidizing vacation homes.
  Craig ended his letter to me saying, ``This nonsense has to stop.'' 
And I agree. Action without results is futile. Let us implement 
solutions that produce results.

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