[Congressional Record (Bound Edition), Volume 156 (2010), Part 8]
[House]
[Pages 10479-10502]
[From the U.S. Government Publishing Office, www.gpo.gov]




                         FHA REFORM ACT OF 2010

  The SPEAKER pro tempore. Pursuant to House Resolution 1424 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the state of the Union for the further consideration of the bill, 
H.R. 5072.

                              {time}  1125


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the state of the Union for the further consideration of 
the bill (H.R. 5072) to improve the financial safety and soundness of 
the FHA mortgage insurance program, with Mr. Pastor of Arizona in the 
chair.
  The Clerk read the title of the bill.
  The Acting CHAIR. When the Committee of the Whole rose on Wednesday 
June 9, 2010, all time for general debate had expired.
  Pursuant to the rule, the amendment in the nature of a substitute 
printed in the bill shall be considered as an original bill for the 
purpose of amendment under the 5-minute rule and shall be considered 
read.
  The text of the committee amendment in the nature of a substitute is 
as follows:

                               H.R. 5072

       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 ``FHA Reform Act of 2010''.

     SEC. 2. MORTGAGE INSURANCE PREMIUMS.

       Subparagraph (B) of section 203(c)(2) of the National 
     Housing Act (12 U.S.C. 1709(c)(2)(B)) is amended--
       (1) in the matter preceding clause (i)--
       (A) by striking ``shall'' and inserting ``may''; and
       (B) by striking ``0.50 percent'' and inserting ``1.5 
     percent''; and
       (2) in clause (ii), by striking ``shall be in an amount not 
     exceeding 0.55 percent'' and inserting ``may be in an amount 
     not exceeding 1.55 percent''.

     SEC. 3. INDEMNIFICATION BY MORTGAGEES.

       Section 202 of the National Housing Act (12 U.S.C. 1708) is 
     amended by adding at the end the following new subsection:
       ``(i) Indemnification by Mortgagees.--
       ``(1) In general.--If the Secretary determines that a 
     mortgage executed by a mortgagee approved by the Secretary 
     under the direct endorsement program or insured by a 
     mortgagee pursuant to the delegation of authority under 
     section 256 was not originated or underwritten in accordance 
     with the requirements established by the Secretary, and the 
     Secretary pays an insurance claim with respect to the 
     mortgage within a reasonable period specified by the 
     Secretary, the Secretary may require the mortgagee approved 
     by the Secretary under the direct endorsement program or the 
     mortgagee delegated authority under section 256 to indemnify 
     the Secretary for the loss.
       ``(2) Fraud or misrepresentation.--If fraud or 
     misrepresentation was involved in connection with the 
     origination or underwriting, the Secretary may require the 
     mortgagee approved by the Secretary under the direct 
     endorsement program or the mortgagee delegated authority 
     under section 256 to indemnify the Secretary for the loss 
     regardless of when an insurance claim is paid.
       ``(3) Requirements and procedures.--The Secretary shall 
     issue regulations establishing appropriate requirements and 
     procedures governing the indemnification of the Secretary by 
     the mortgagee.''.

     SEC. 4. DELEGATION OF INSURING AUTHORITY.

       Section 256 of the National Housing Act (12 U.S.C. 1715z-
     21) is amended--
       (1) by striking subsection (c);
       (2) in subsection (e), by striking ``, including'' and all 
     that follows through ``by the mortgagee''; and
       (3) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively.

     SEC. 5. AUTHORITY TO TERMINATE MORTGAGEE ORIGINATION AND 
                   UNDERWRITING APPROVAL.

       Section 533 of the National Housing Act (12 U.S.C. 1735f-
     11) is amended--
       (1) in the first sentence of subsection (b), by inserting 
     ``or areas or on a nationwide basis'' after ``area'' each 
     place such term appears; and
       (2) in subsection (c), by striking ``(c)'' and all that 
     follows through ``The Secretary'' in the first sentence of 
     paragraph (2) and inserting the following:
       ``(c) Termination of Mortgagee Origination and Underwriting 
     Approval.--
       ``(1) Termination authority.--If the Secretary determines, 
     under the comparison provided in subsection (b), that a 
     mortgagee has a rate of early defaults and claims that is 
     excessive, the Secretary may terminate the approval of the 
     mortgagee to originate or underwrite single family mortgages 
     for any area, or areas, or on a nationwide basis, 
     notwithstanding section 202(c) of this Act.
       ``(2) Procedure.--The Secretary''.

     SEC. 6. DEPUTY ASSISTANT SECRETARY OF FHA FOR RISK MANAGEMENT 
                   AND REGULATORY AFFAIRS.

       (a) Establishment of Position.--Subsection (b) of section 4 
     of the Department of Housing and Urban Development Act (42 
     U.S.C. 3533(b)) is amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) There shall be in the Department, within the Federal 
     Housing Administration, a Deputy Assistant Secretary for Risk 
     Management and Regulatory Affairs, who shall be appointed by 
     the Secretary and shall be responsible to the Federal Housing 
     Commissioner for all matters relating to managing and 
     mitigating risk to the mortgage insurance funds of the 
     Department and ensuring the performance of mortgages insured 
     by the Department.''.
       (b) Termination.--Upon the appointment and confirmation of 
     the initial Deputy Assistant Secretary for Risk Management 
     and Regulatory Affairs pursuant to section 4(b)(2) of the 
     Department of Housing and Urban Development Act, as amended 
     by subsection (a) of this section, the position of chief risk 
     officer within the Federal Housing Administration, filled by 
     appointment by the Federal Housing Commissioner, is 
     abolished.

     SEC. 7. USE OF OUTSIDE CREDIT RISK ANALYSIS SOURCES.

       Section 202 of the National Housing Act (12 U.S.C. 1708), 
     as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     subsection:
       ``(j) Use of Outside Credit Risk Analysis Sources.--The 
     Secretary may obtain the services of, and enter into 
     contracts with, private and other entities outside of the 
     Department in--
       ``(1) analyzing credit risk models and practices employed 
     by the Department in connection with such mortgages;
       ``(2) evaluating underwriting standards applicable to such 
     mortgages insured by the Department; and
       ``(3) analyzing the performance of lenders in complying 
     with, and the Department in enforcing, such underwriting 
     standards.''.

     SEC. 8. REVIEW OF MORTGAGEE PERFORMANCE.

       Section 533 of the National Housing Act (12 U.S.C. 1735f-
     11) is amended--
       (1) in subsection (a), by inserting after the period at the 
     end the following: ``For purposes of this subsection, the 
     term `early default' means a default that occurs within 24 
     months after a mortgage is originated or such alternative 
     appropriate period as the Secretary shall establish.'';
       (2) in subsection (b), by inserting after the period at the 
     end of the first sentence the following: ``The Secretary 
     shall also identify which mortgagees have had a significant 
     or rapid increase, as determined by the Secretary, in the 
     number or percentage of early defaults and claims on such 
     mortgages, with respect to all mortgages originated by the 
     mortgagee or mortgages on housing located in any particular 
     geographic area or areas.''; and
       (3) by adding at the end the following new subsections:
       ``(d) Sufficient Resources.--There is authorized to be 
     appropriated to the Secretary for each of fiscal years 2010 
     through 2014 the amount necessary to provide additional full-
     time equivalent positions for the Department, or for entering 
     into such contracts as are necessary, to conduct reviews in 
     accordance with the requirements of this section and to carry 
     out other responsibilities relating to ensuring the safety 
     and soundness of the Mutual Mortgage Insurance Fund.
       ``(e) Reporting to Congress.--Not later than 90 days after 
     the date of enactment of the FHA Reform Act of 2010 and not 
     less often than annually thereafter, the Secretary shall make 
     available to the Committee on Financial Services of the House 
     of Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate any information and conclusions 
     pursuant to the reviews required under subsection (a). Such 
     report shall not include detailed information on the 
     performance of individual mortgages.''.

     SEC. 9. USE OF NATIONWIDE MORTGAGE LICENSING SYSTEM AND 
                   REGISTRY.

       (a) Use by Mortgagees, Officers, and Owners; Use for 
     Insured Mortgages.--
       (1) Mortgagees, officers, and owners.--Section 202 of the 
     National Housing Act (12 U.S.C. 1708), as amended by the 
     preceding provisions of this Act, is further amended by 
     adding at the end the following new subsections:
       ``(k) Use of Nationwide Mortgage Licensing System and 
     Registry for Mortgagees, Officers, and Owners.--The Secretary 
     may require, as a condition for approval of a mortgagee by 
     the Secretary to originate or underwrite mortgages on single 
     family that are insured by the Secretary, that the 
     mortgagee--
       ``(1) obtain and maintain a unique company identifier 
     assigned by the Nationwide Mortgage Licensing System and 
     Registry, as established by the Conference of State Bank 
     Supervisors and the American Association of Residential 
     Mortgage Regulators; and
       ``(2) obtain and maintain, as relates to any and all 
     officers or owners of the mortgagee who are subject to the 
     requirements of the S.A.F.E. Mortgage Licensing Act of 2008, 
     or are otherwise required to register with the Nationwide 
     Mortgage Licensing System and Registry, the unique

[[Page 10480]]

     identifier assigned by the Nationwide Mortgage Licensing 
     System and Registry, as established by the Conference of 
     State Bank Supervisors and the American Association of 
     Residential Mortgage Regulators.''.
       (2) Insured mortgages.--Section 203 of the National Housing 
     Act (12 U.S.C. 1709) is amended by adding at the end the 
     following new subsection:
       ``(y) Use of Nationwide Mortgage Licensing System and 
     Registry for Insured Loans.--The Secretary may require each 
     mortgage insured under this section to include the unique 
     identifier (as such term is defined in section 1503 of the 
     S.A.F.E. Mortgage Licensing act of 2008 (12 U.S.C. 5102)) and 
     any unique company identifier assigned by the Nationwide 
     Mortgage Licensing System and Registry, as established by the 
     Conference of State Bank Supervisors and the American 
     Association of Residential Mortgage Regulators.''.
       (b) Coordination With State Regulatory Agencies.--Section 
     202 of the National Housing Act (12 U.S.C. 1708), as amended 
     by the preceding provisions of this Act, is further amended 
     by adding at the end the following new subsection:
       ``(l) Information Sharing With State Regulatory Agencies.--
       ``(1) Joint protocol on information sharing.--The Secretary 
     shall, through consultation with State regulatory agencies, 
     pursue protocols for information sharing, including the 
     appropriate treatment of confidential or otherwise restricted 
     information, regarding either actions described in subsection 
     (c)(3) of this section or disciplinary or enforcement actions 
     by a State regulatory agency or agencies against a mortgagee 
     (as such term is defined in subsection (c)(7)).
       ``(2) Coordination.--To the greatest extent possible, the 
     Secretary and appropriate State regulatory agencies shall 
     coordinate disciplinary and enforcement actions involving 
     mortgagees (as such term is defined in subsection (c)(7)).''.

     SEC. 10. REPORTING OF MORTGAGEE ACTIONS TAKEN AGAINST OTHER 
                   MORTGAGEES.

       Section 202 of the National Housing Act (12 U.S.C. 
     1708(e)), as amended by the preceding provisions of this Act, 
     is further amended by adding at the end the following new 
     subsection:
       ``(m) Notification of Mortgagee Actions.--The Secretary 
     shall require each mortgagee, as a condition for approval by 
     the Secretary to originate or underwrite mortgages on single 
     family or multifamily housing that are insured by the 
     Secretary, if such mortgagee engages in the purchase of 
     mortgages insured by the Secretary and originated by other 
     mortgagees or in the purchase of the servicing rights to such 
     mortgages, and such mortgagee at any time takes action to 
     terminate or discontinue such purchases from another 
     mortgagee based on any determination, evidence, or report of 
     fraud or material misrepresentation in connection with the 
     origination of such mortgages, the mortgagee shall, not later 
     than 15 days after taking such action, shall notify the 
     Secretary of the action taken and the reasons for such 
     action.''.

     SEC. 11. ANNUAL ACTUARIAL STUDY AND QUARTERLY REPORTS ON 
                   MUTUAL MORTGAGE INSURANCE FUND.

       Subsection (a) of section 202 of the National Housing Act 
     (12 U.S.C. 1708(a)) is amended--
       (1) in the second sentence of paragraph (4), by inserting 
     before the period at the end the following: ``, any changes 
     to the current or projected safety and soundness of the Fund 
     since the most recent report under this paragraph or 
     paragraph (5), and any risks to the Fund''; and
       (2) in paragraph (5)--
       (A) in subparagraph (D), by striking ``and'' at the end;
       (B) in subparagraph (E), by striking the period at the end 
     and inserting ``; and'';
       (C) by adding at the end the following:
       ``(F) any other factors that are likely to have an impact 
     on the financial status of the Fund or cause any material 
     changes to the current or projected safety and soundness of 
     the Fund since the most recent report under paragraph (4).

     The Secretary may include in the report under this paragraph 
     any recommendations not made in the most recent report under 
     paragraph (4) that may be needed to ensure that the Fund 
     remains financially sound.''.

     SEC. 12. REVIEW OF DOWNPAYMENT REQUIREMENTS.

       Section 205 of the National Housing Act (12 U.S.C. 1711) is 
     amended by adding at the end the following new subsection:
       ``(g) Review of Downpayment Requirements.--If, at any time 
     when the capital ratio (as such term is defined in subsection 
     (f)) of the Mutual Mortgage Insurance Fund does not comply 
     with the requirement under subsection (f)(1), the Secretary 
     establishes a cash investment requirement, for all mortgages 
     or mortgagors or with respect to any group of mortgages or 
     mortgagors, that exceeds the minimum percentage or amount 
     required under section 203(b)(9), thereafter upon the capital 
     ratio first complying with the requirement under subsection 
     (f)(1) the Secretary shall review such cash investment 
     requirement and, if the Secretary determines that such 
     percentage or amount may be reduced while maintaining such 
     compliance, the Secretary shall subsequently reduce such 
     requirement by such percentage or amount as the Secretary 
     considers appropriate.''.

     SEC. 13. DEFAULT AND ORIGINATION INFORMATION BY LOAN SERVICER 
                   AND ORIGINATING DIRECT ENDORSEMENT LENDER.

       (a) Collection of Information.--Paragraph (2) of section 
     540(b) of the National Housing Act (12 U.S.C. 1712 U.S.C. 
     1735f-18(b)(2)) is amended by adding at the end the following 
     new subparagraph:
       ``(C) For each entity that services insured mortgages, data 
     on the performance of mortgages originated during each 
     calendar quarter occurring during the applicable collection 
     period, disaggregated by the direct endorsement mortgagee 
     from whom such entity acquired such servicing.''.
       (b) Applicability.--Information described in subparagraph 
     (C) of section 540(b)(2) of the National Housing Act, as 
     added by subsection (a) of this section, shall first be made 
     available under such section 540 for the applicable 
     collection period (as such term is defined in such section) 
     relating to the first calendar quarter ending after the 
     expiration of the 12-month period that begins on the date of 
     the enactment of this Act.

     SEC. 14. THIRD PARTY SERVICER OUTREACH.

       (a) Authority.--The Secretary of Housing and Urban 
     Development may, to the extent any amounts for fiscal year 
     2010 or 2011 are made available in advance in appropriation 
     Acts for reimbursements under this section, provide 
     reimbursement to servicers of covered mortgages (as such term 
     is defined in subsection (e)) for costs of obtaining the 
     services of independent third parties meeting the 
     requirements under subsection (b) of this section to make in-
     person contact with mortgagors under covered mortgages whose 
     payments under such mortgages are 60 or more days past due, 
     solely for the purposes of providing information to such 
     mortgagors regarding--
       (1) available counseling by housing counseling agencies 
     approved by the Secretary ; and
       (2) available mortgage loan modification, refinance, and 
     assistance programs.
       (b) Qualified Independent Third Parties.--An independent 
     third party meets the requirements of this subsection if the 
     third party--
       (1) is an entity, including a housing counseling agency 
     approved by the Secretary, that meets standards, 
     qualifications, and requirements (including regarding 
     foreclosure prevention training, quality monitoring, 
     safeguarding of non-public information) established by the 
     Secretary for purposes of this section for in-person contact 
     about available mortgage loan modification, refinance, and 
     assistance programs; and
       (2) does not charge any fees or require other payments, 
     directly or indirectly, from any mortgagor for making in-
     person contact and providing information and documents under 
     this section.
       (c) Treatment of Personal, Non-public, and Confidential 
     Information.--An independent third party whose services are 
     obtained using amounts made available for use under this 
     section and the mortgage servicer obtaining such services 
     shall not use, disclose, or distribute any personal, non-
     public, or confidential information about a mortgagor 
     obtained during an in-person contact with the mortgagor, 
     except for purposes of engaging in the process of 
     modification or refinance of the covered mortgage.
       (d) Date of Contact and Disclosures.--Each independent 
     third party whose services are obtained by a mortgage 
     servicer using amounts made available for use under this 
     section shall--
       (1) initiate in-person contact with a mortgagor not later 
     than 10 days after the date upon which payments under the 
     covered mortgage of the mortgagor become 60 days past due; 
     and
       (2) upon making in-person contact with a mortgagor, provide 
     the mortgagor with a written document that discloses--
       (A) the name of, and contact information for, the 
     independent third party and the mortgage servicer;
       (B) that the independent third party has contracted with 
     the mortgage servicer to provide the in-person contact at no 
     charge to the mortgagor;
       (C) that the independent third party is an agent of the 
     mortgage servicer;
       (D) that the in-person contact with the mortgagor consists 
     of providing information about available counseling by a 
     housing counseling agency approved by the Secretary and 
     available mortgage loan modification, refinance, and 
     assistance programs;
       (E) that the independent third party and the mortgage 
     servicer are prohibited from the use, disclosure, or 
     distribution of personal, non-public, and confidential 
     information about the mortgagor, obtained during the in-
     person contact, except for purposes of engaging in the 
     process of modification or refinance of the covered mortgage;
       (F) any other information that the Secretary determines 
     should be disclosed.
       (e) Definition of Covered Mortgage.--For purposes of this 
     section, the term ``covered mortgage'' means a mortgage on a 
     1- to 4-family residence insured under the provisions of 
     subsection (b) or (k) of section 203, section 234(c), or 251 
     of the National Housing Act (12 U.S.C. 1709, 1715y, 1715z-
     16).

     SEC. 15. GAO REPORTS ON FHA AND GINNIE MAE.

       Not later than the expiration of the 12-month period 
     beginning on the date of the enactment of this Act, the 
     Comptroller General of the United States shall submit to the 
     Congress the following reports:
       (1) FHA report.--A report on the single family mortgage 
     insurance programs of the Secretary of Housing and Urban 
     Development and the Mutual Mortgage Insurance Fund 
     established under section 202(a) of the National Housing Act 
     (12 U.S.C. 1708(a)) that--

[[Page 10481]]

       (A) analyzes such Fund, the economic net worth, capital 
     ratio, and unamortized insurance-in-force (as such terms are 
     defined in section 205(f)(4) of such Act (12 U.S.C. 
     1711(f)(4))) of such Fund, the risks to the Fund, how the 
     capital ratio of the Fund affects the mortgage insurance 
     programs under the Fund and the broader housing market, the 
     extent to which the housing markets are more dependent on 
     mortgage insurance provided through the Fund since the 
     financial crisis began in 2008, and the exposure of the 
     taxpayers for obligations of the Fund;
       (B) analyzes the methodology of the capital ratio for the 
     Fund under section 205(f) of such Act and examines other 
     alternative methodologies with respect to which methodology 
     is most appropriate to meet the operational goals of the Fund 
     under section 202(a)(7);
       (C) analyzes the effects of the increases in the limits on 
     the maximum principal obligation of mortgages made by the FHA 
     Modernization Act of 2008 (title I of division B of Public 
     Law 110-289), section 202 of the Economic Stimulus Act of 
     2008 (Public Law 110-185; 122 Stat. 620), section 1202 of 
     division A of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5; 123 Stat. 225), and section 166 of 
     the Continuing Appropriations Resolution, 2010 (as added by 
     section 104 of division B of Public Law 111-88; 123 Stat. 
     29723) on--
       (i) the risks to and safety and soundness of the Fund;
       (ii) the impact on the affordability and availability of 
     mortgage credit for borrowers for loans authorized under such 
     higher loan limits;
       (iii) the private market for residential mortgage loans 
     that are not insured by the Secretary of Housing and Urban 
     Development; and
       (iv) the Federal National Mortgage Association and the 
     Federal Home Loan Mortgage Corporation; and
       (D) analyzes the impact on affordability to FHA borrowers, 
     and the impact to the Fund, of seller concessions or 
     contributions to a borrower purchasing a residence using a 
     mortgage that is insured by the Secretary.
       (2) Ginnie mae.--A report on the Government National 
     Mortgage Association that identifies--
       (A) the volume and share of the residential mortgage market 
     that consists of mortgages that back securities for which the 
     payment for principal and interest is guaranteed by such 
     Association and how the Association has been affected by the 
     economic recession, credit crisis, and downturn in the 
     housing markets occurring during 2008, 2009, and 2010;
       (B) the capacity of the Association to manage the volume of 
     business it conducts and securities it guarantees, 
     particularly with regard to the recent dramatic increase in 
     such volume, including the ability of the Association to 
     conduct appropriate oversight of contractors and issuers of 
     securities for which the payment of principal and interest is 
     guaranteed by the Association and to determine whether the 
     characteristics of various mortgage products constitute 
     appropriate collateral for the federally guaranteed 
     securities for which payment of principal and interest is 
     guaranteed by such Association;
       (C) the impacts, if any, resulting from such increased 
     volume of business conducted by the Association and 
     securities it guarantees and the challenges such increased 
     volume poses to the internal controls of the Association; and
       (D) the existing capital net worth requirements for 
     aggregators of mortgages that issue securities that are based 
     on or backed by such mortgages and payment of principal and 
     interest on which is guaranteed by such Association and 
     recommends an appropriate required level of net worth for 
     such aggregators and issuers to protect the financial 
     interests of the Federal Government and the taxpayers.

  The Acting CHAIR. No amendment to the committee amendment is in order 
except those printed in House Report 111-503. Each amendment may be 
offered only in the order printed in the report, by a Member designated 
in the report, shall be considered read, shall be debatable for the 
time specified in the report equally divided and controlled by the 
proponent and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question.


                 Amendment No. 1 Offered by Ms. Waters

  The Acting CHAIR. It is now in order to consider amendment No. 1 
printed in House Report 111-503.
  Ms. WATERS. Mr. Chairman, I have an amendment at the desk made in 
order under the rule.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Ms. Waters:
       Page 9, line 19, after ``single family'' insert 
     ``residences''.
       Page 18, line 24, strike ``12-month'' and insert ``18-
     month''.
       Page 14, after line 16, insert the following new section:

     SEC. 13. AUTHORIZATION TO PARTICIPATE IN THE ORIGINATION OF 
                   FHA-INSURED LOANS.

       (a) Single Family Mortgages.--Section 203(b) of the 
     National Housing Act (12 U.S.C. 1709(b)) is amended by 
     striking paragraph (1) and inserting the following new 
     paragraph:
       ``(1) Have been made to a mortgagee approved by the 
     Secretary or to a person or entity authorized by the 
     Secretary under section 202(d)(1) to participate in the 
     origination of the mortgage, and be held by a mortgagee 
     approved by the Secretary as responsible and able to service 
     the mortgage properly.''.
       (b) Home Equity Conversion Mortgages.--Section 255(d) of 
     the National Housing Act (12 U.S.C. 1715z-20(d)) is amended 
     by striking paragraph (1) and inserting the following new 
     paragraph:
       ``(1) have been originated by a mortgagee approved by, or 
     by a person or entity authorized under section 202(d)(1) to 
     participate in the origination by, the Secretary;''.
       Page 14, line 17, strike ``13'' and insert ``14''.
       Page 15, line 14, strike ``14'' and insert ``15''.
       Strike line 23 on page 18 and all that follows through page 
     22, line 20, and insert the following:

     SEC. 16. GAO REPORT ON FHA.

       Not later than the expiration of the 12-month period 
     beginning on the date of the enactment of this Act, the 
     Comptroller General of the United States shall submit to the 
     Congress a report on the single family mortgage insurance 
     programs of the Secretary of Housing and Urban Development 
     and the Mutual Mortgage Insurance Fund established under 
     section 202(a) of the National Housing Act (12 U.S.C. 
     1708(a)) that--
       (1) analyzes such Fund, the economic net worth, capital 
     ratio, and unamortized insurance-in-force (as such terms are 
     defined in section 205(f)(4) of such Act (12 U.S.C. 
     1711(f)(4))) of such Fund, the risks to the Fund, how the 
     capital ratio of the Fund affects the mortgage insurance 
     programs under the Fund and the broader housing market, the 
     extent to which the housing markets are more dependent on 
     mortgage insurance provided through the Fund since the 
     financial crisis began in 2008, and the exposure of the 
     taxpayers for obligations of the Fund;
       (2) analyzes the methodology for determining the Fund's 
     capital ratio under section 205(f) of such Act and examines 
     alternative methods for assessing the Fund's financial 
     condition and their potential impacts on the Fund's ability 
     to meet the operational goals under section 202(a)(7) of such 
     Act;
       (3) analyzes the potential effects of the increases in the 
     limits on the maximum principal obligation of mortgages made 
     by the FHA Modernization Act of 2008 (title I of division B 
     of Public Law 110-289), section 202 of the Economic Stimulus 
     Act of 2008 (Public Law 110-185; 122 Stat. 620), section 1202 
     of division A of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5; 123 Stat. 225), and section 166 of 
     the Continuing Appropriations Resolution, 2010 (as added by 
     section 104 of division B of Public Law 111-88; 123 Stat. 
     29723) on--
       (A) the risks to and safety and soundness of the Fund;
       (B) the impact on the affordability and availability of 
     mortgage credit for borrowers for loans authorized under such 
     higher loan limits;
       (C) the private market for residential mortgage loans that 
     are not insured by the Secretary of Housing and Urban 
     Development; and
       (D) the Federal National Mortgage Association and the 
     Federal Home Loan Mortgage Corporation; and
       (4) analyzes the impact on affordability to FHA borrowers, 
     and the impact to the Fund, of seller concessions or 
     contributions to a borrower purchasing a residence using a 
     mortgage that is insured by the Secretary.
       At the end of the bill, add the following new sections:

     SEC. 17. INCREASED LOAN LIMITS FOR DESIGNATED COUNTIES.

       (a) Authority.--Notwithstanding any other provision of law, 
     the Secretary of Housing and Urban Development (in this 
     section referred to as the ``Secretary'') may increase the 
     dollar amount limitations on the principal obligation of 
     mortgages otherwise determined under section 203(b)(2) of the 
     National Housing Act for any county that is designated under 
     this section.
       (b) Procedure.--
       (1) Federal register notice.--Any designation of a county 
     under this section shall be made only pursuant to application 
     by the county for such designation, in accordance with 
     procedures that the Secretary may establish. The Secretary 
     may establish such procedures only by publication in the 
     Federal Register not later than 60 days after the date of the 
     enactment of this Act.
       (2) Final determination.--If the Secretary establishes 
     procedures for applications under paragraph (1) and receives 
     a completed application for designation under this section of 
     a county in accordance with such procedures, the Secretary 
     shall issue a final determination regarding such application 
     for designation, based on the criteria under subsection (c), 
     not later than 60 days after such receipt.
       (c) Determination Criteria.--The Secretary may designate an 
     applicant county under this section only if the county is 
     located within a micropolitan area (as such term is defined 
     by the Director of the Office of Management and Budget) and 
     meets the following criteria:

[[Page 10482]]

       (1) More than 70 percent of the border of the applicant 
     county abuts two or more metropolitan statistical areas (as 
     such term is defined by the Director of the Office of 
     Management and Budget) for which each dollar amount 
     limitation on the principal obligation of a mortgage that may 
     be insured under section 203 of the National Housing Act, in 
     effect at the time of such determination, is at least 40 
     percent greater than the dollar amount limitation for the 
     same size residence for the applicant county. For purposes of 
     such calculation, the dollar amount limitations of such 
     abutting counties shall not include any increase attributable 
     to the authority under this section.
       (2) The applicant county has experienced significant 
     population growth, as evidenced by an increase of 15 percent 
     or more during the 10 years preceding the application, 
     according to statistics of the United States Census Bureau or 
     such other appropriate criteria as the Secretary shall 
     establish.
       (3) The dollar amount limitation on the principal 
     obligation of a mortgage on housing in the applicant county 
     that may be insured under section 203 of the National Housing 
     Act, in effect at the time of such application, is the 
     minimum such dollar amount limitation allowable under the 
     matter that follows clause (ii) in section 203(b)(2)(A) of 
     the National Housing Act.
       (d) Establishment of Loan Limits.--For a county designated 
     under this section, the Secretary may increase the maximum 
     dollar amount limitations on the principal obligation of 
     mortgages otherwise determined under section 203(b)(2) of the 
     National Housing Act to such levels as are appropriate, 
     taking into consideration the criteria established for such 
     designation, but not to exceed the dollar amount limitations 
     for the abutting metropolitan statistical area meeting the 
     requirements of subsection (c)(1) that has the lowest such 
     dollar amount limitations.
       (e) Effective Date and Term of Designation of New 
     Countywide Loan Limits.--A designation of a county under this 
     section, and the maximum dollar amount limitations for such 
     county pursuant to subsection (d), shall--
       (1) take effect upon the expiration of the 60-day period 
     that begins upon the final determination for the county 
     referred to in subsection (b)(2); and
       (2) remain in effect until the end of the calendar year in 
     which such designation takes effect.
       (f) Loan Limits for Succeeding Years.--With respect to each 
     calendar year immediately following the calendar year in 
     which a county is designated under this subsection, the 
     Secretary may, notwithstanding any other provision of law, 
     continue or adjust the dollar amount limitations in effect 
     pursuant to this section for such designated county for such 
     preceding year, as appropriate, consistent with the criteria 
     under this section.

     SEC. 18. IDENTIFICATION REQUIREMENTS FOR BORROWERS.

       Section 203 of the National Housing Act (12 U.S.C. 1709), 
     as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     subsection:
       ``(z) Identification Requirements for Borrowers.--No 
     mortgage on a 1- to 4-family dwelling may be insured under 
     this title unless the mortgagor under such mortgage--
       ``(1) provides a valid Social Security Number; and
       ``(2) is (A) a United States citizen, (B) a lawful 
     permanent resident alien, or (C) a non-permanent resident 
     alien who legally resides in and is authorized to work in the 
     United States.

     The Secretary shall establish policies under which mortgagees 
     verify compliance with the requirements under this 
     subsection.''.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentlewoman 
from California (Ms. Waters) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from California.
  Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, the manager's amendment would make technical 
corrections to the underlying FHA Reform Act of 2010 and would respond 
to a GAO request for more time to complete the mandated study on FHA.
  This amendment would also facilitate HUD's implementation of a 
recently finalized rule whereby FHA will no longer directly approve 
loan correspondents or mortgage brokers but will require lenders to 
approve brokers.
  Under the language proposed in this amendment, loan correspondents 
would be permitted to continue closing loans in their own name, a 
critical business function, and continue to utilize table funding 
arrangements.
  This amendment also addresses eligibility for FHA loans by requiring 
FHA borrowers to have a valid Social Security number and limiting FHA 
loans to only U.S. citizens and legal immigrants. This language ensures 
that undocumented immigrants or other individuals who are in the 
country unlawfully cannot get FHA mortgages, while still providing that 
lawful immigrants can continue to stimulate demand in the U.S. housing 
market through the purchase of homes.
  Finally, this amendment provides that the Secretary may increase loan 
limits for micropolitan counties surrounded by higher-cost areas that 
are experiencing significant growth.
  Again, this amendment strengthens an already strong bill, and I urge 
my colleagues to support it.
  Mr. Chairman, I reserve the balance of my time.

                              {time}  1130

  Mrs. CAPITO. Mr. Chairman, I claim the time in opposition, but I am 
not opposed to the amendment.
  The Acting CHAIR. Without objection, the gentlewoman from West 
Virginia is recognized for 5 minutes.
  There was no objection.
  Mrs. CAPITO. I would like to thank the chairwoman of the Housing 
Subcommittee for her good work on this bill and for this manager's 
amendment. We have worked together on this amendment, as we have with 
the rest of the bill.
  As she summarized in her statement, this provides provisions that 
drops out a few provisions that were problematic, but it also increases 
the requirements for identification, for a valid Social Security number 
and to be a U.S. citizen to be able to have access to FHA programs. I 
think it goes to the core of a lot of discussion that we've had on this 
floor, and certainly we want to make certain that those who are 
eligible for programs are able to access them and those that are 
ineligible are unable to access them.
  So as I said, we've worked together on this amendment, and I plan to 
support the manager's amendment.
  With that, I yield back the balance of my time.
  Ms. WATERS. Mr. Chairman, I have no further requests for time on this 
amendment, and I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from California (Ms. Waters).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Ms. WATERS. Mr. Chair, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentlewoman from California 
will be postponed.


                 Amendment No. 2 Offered by Mr. Cardoza

  The Acting CHAIR. It is now in order to consider amendment No. 2 
printed in House Report 111-503.
  Mr. CARDOZA. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Mr. Cardoza:
       Page 15, line 20, strike ``(e)'' and insert ``(f)''.
       Page 18, after line 16, insert the following new 
     subsection:
       (e) Priority.--In providing reimbursements under this 
     section, the Secretary of Housing and Urban Development shall 
     provide priority to independent third parties serving 
     mortgagors under covered mortgages in areas experiencing a 
     mortgage foreclosure rate and unemployment rate higher than 
     the national average for the most recent 12-month period for 
     which satisfactory data are available.
       Page 18, line 17, strike ``(e)'' and insert ``(f)''.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentleman 
from California (Mr. Cardoza) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from California.
  Mr. CARDOZA. I yield myself such time as I may consume.
  In recent weeks we have seen a small but slow and steady improvement 
in the national housing market while other parts of the country, like 
my congressional district in the San Joaquin Valley, have continued to 
deteriorate. I have repeatedly explained to the

[[Page 10483]]

administration that their programs are not doing enough to stem the 
problems of the rising tide of foreclosures in areas like the Central 
Valley in California.
  As this economic devastation continues, we must redouble our efforts 
to help our constituents as we work to improve the fundamentals of the 
economy and hopefully eventually pull ourselves out of this situation. 
We must ensure that we are doing everything that we can to help those 
who are suffering the most.
  Counseling services are just one component of this comprehensive 
approach that we need to deal with this ongoing crisis. People must 
know their options when faced with foreclosure so that they can make 
informed decisions based on their own personal circumstances. 
Navigating these options is often difficult, stressful, and confusing 
to those who have never had to deal with such issues. Counseling can 
help some people find ways to stay in their homes while it offers 
others a path to resolve an impending foreclosure and get back on their 
feet.
  If we are going to incentivize mortgage servicers to provide third-
party counselors to borrowers who are behind on their mortgage 
payments, then we ought to make sure we give priority to those areas 
who are hurting the most. My amendment would prioritize foreclosure 
counseling services to areas of the country that have been the hardest 
hit by the housing crisis.
  I urge my colleagues on both sides of the aisle to support this 
amendment and to refocus our efforts on those who need the help the 
most.
  I reserve the balance of my time.
  Mrs. CAPITO. I would like to claim the time in opposition, although I 
am unopposed to the amendment.
  The Acting CHAIR. Without objection, the gentlewoman from West 
Virginia is recognized for 5 minutes.
  There was no objection.
  Mrs. CAPITO. I rise in support of the amendment offered by the 
gentleman from California.
  As my colleague from California knows all too well, rising 
foreclosure and delinquency rates continue to affect all areas of the 
mortgage market. Secondary markets for mortgages have seen a 
significant drawback that has led to a reduction in the availability of 
credit. Lenders have tightened credit standards making it more 
difficult for delinquent borrowers to refinance.
  At the same time, because of falling home prices and certainly in 
many parts of the country, like the gentleman's home district, 
borrowers are finding themselves unable to refinance into more 
affordable or fixed-rate products because their outstanding mortgage 
loan balances exceed their homes' values.
  States such as California, Florida, Arizona, and Nevada continue to 
dominate the national delinquency and foreclosure markets. The Cardoza 
amendment prioritizes assistance to the areas that have been hardest 
hit by foreclosure and unemployment compared to the rest of the 
country.
  I am prepared to support the gentleman's amendment, and I would like 
to say that one area of the gentleman's amendment that I particularly 
am in favor of--because we kind of go through this discussion on a lot 
of different bills, where to put the greater emphasis, and I think the 
greater emphasis and the greater dollar assistance need to go to the 
places that are the hardest hit and do have the most difficult 
problems. And so I think this is well-intentioned, and I would support 
the amendment.
  I reserve the balance of my time.
  Mr. CARDOZA. Mr. Chairman, I thank the gentlelady for her comments 
and her support of my amendment. It is very important that we do move 
in this direction.
  At this time, I yield 1 minute to the chairwoman of the subcommittee, 
a true champion for those who are trying to remain in their homes, and 
she's done so much to try to help us alleviate the challenges that we 
face in my district and throughout our State, the gentlewoman from 
California (Ms. Waters).
  Ms. WATERS. I would like to thank my colleague from California. I 
certainly support this amendment.
  The gentleman from California has been one of the most active Members 
of this Congress in bringing attention to the economic fallout of the 
foreclosure crisis. I am well aware that his district located in my 
home State of California has one of the highest foreclosure rates in 
the country. California has the Nation's fourth highest foreclosure 
rate with one in every 192 housing units receiving a foreclosure filing 
last April.
  Unfortunately, due to the economic impacts of foreclosures on 
communities, high foreclosure rates are sometimes accompanied by high 
unemployment rates. At 13 percent, California's unemployment rate is 
higher than the national unemployment rate of 9.5 percent. By 
prioritizing foreclosure counseling services to the hardest hit areas, 
this amendment would ensure that the homeowners most in need of these 
services would receive them, helping to stabilize communities that are 
already facing economic troubles.
  I support this amendment, and I certainly thank the gentleman for 
offering it. I hope my colleagues will vote ``yes.''
  Mrs. CAPITO. Again, I voice my support for the amendment, and I yield 
back the balance of my time.
  Mr. CARDOZA. This amendment is straightforward and common sense. I 
believe that Congress must ensure that all efforts to provide 
assistance during these difficult times actually help those that need 
it the most.
  I urge adoption of the amendment, and I yield back the balance of my 
time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from California (Mr. Cardoza).
  The amendment was agreed to.


                   Amendment No. 3 Offered by Mr. Cao

  The Acting CHAIR. It is now in order to consider amendment No. 3 
printed in House Report 111-503.
  Mr. CAO. Mr. Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Mr. Cao:
       Page 16, line 4, strike ``and''.
       Page 16, line 6, strike the period and insert ``; and''.
       Page 16, after line 6, insert the following:
       (3) available counseling regarding financial management and 
     credit risk.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentleman 
from Louisiana (Mr. Cao) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Louisiana.
  Mr. CAO. Mr. Chairman, I rise today in support of my amendment to 
H.R. 5072, the FHA Reform Act of 2010. The bill we are considering 
today is a much-needed piece of legislation to help bolster the Federal 
Housing Administration and help prevent another housing crisis.
  As someone from a district that is both in recovery and one with 
incredible housing needs, I especially appreciate this bill. I 
congratulate Chairman Frank and Ranking Member Bachus for bringing this 
important legislation to the floor.
  I think the portion of the bill which provides information about loan 
modification and housing counseling to a mortgager at risk of early 
default is important. The amendment that I propose slightly expands 
this requirement by including language that includes credit risk and 
financial management counseling information.
  I know that many times, especially in the current economic downturn, 
people headed for foreclosure have many other debt issues. Low- and 
middle-income families, those most likely to have FHA loans, often 
don't know that there is counseling available to help them understand 
the credit risk associated with foreclosure and loan modification. Many 
do not have the skills to manage this risk. They don't know that there 
is often free or low-cost financial management information available to 
them for help. That is why I have drafted the additional language to 
help these families get information about the full range of services 
available to them. This is good policy from which any constituent in my 
district can benefit.

[[Page 10484]]

  This is about giving people the information they need to be 
successful. As policymakers, we should not only aim to preserve 
homeownership but to encourage responsible homeownership. By empowering 
people, we are taking a proactive stance towards aborting another 
financial crisis.
  I reserve the balance of my time.
  Ms. WATERS. I rise to claim the time in opposition, although I am not 
opposed to the amendment.
  The Acting CHAIR. Without objection, the gentlewoman from California 
is recognized for 5 minutes.
  There was no objection.
  Ms. WATERS. I thank the gentleman for this amendment which would 
ensure that FHA borrowers who are having difficulty paying their loans 
would receive counseling about credit risk and financial management in 
addition to information about loan modification assistance and the 
availability of housing counseling.
  Financial literacy is an important tool for empowering consumers, 
especially those consumers who are having difficulty making mortgage 
payments. The gentleman's amendment would enhance the housing 
counseling resources provided by the bill. By allowing borrowers to 
learn about how to manage their non-mortgage debt, they could be 
helpful in ensuring that they are able to remain current in their 
mortgages after modification.
  I support this amendment, and I urge an ``aye'' vote.
  I yield back the balance of my time.
  Mr. CAO. I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Louisiana (Mr. Cao).
  The amendment was agreed to.


                  Amendment No. 4 Offered by Ms. Bean

  The Acting CHAIR. It is now in order to consider amendment No. 4 
printed in House Report 111-503.
  Ms. BEAN. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 offered by Ms. Bean:
       At the end of the bill, add the following new section:

     SEC. 16. AUTHORITY TO ESTABLISH HIGHER MINIMUM CASH 
                   INVESTMENT REQUIREMENT.

       (a) Authority.--Paragraph (9) of section 203(b) of the 
     National Housing Act (12 U.S.C. 1709(b)(9)) is amended by 
     adding at the end the following new subparagraph:
       ``(D) Authority to establish higher minimum requirement.--
     The Secretary may establish a higher minimum cash investment 
     requirement than the minimum requirement under subsection 
     (a), for all mortgagors or a certain class or classes of 
     mortgagors, which may be based on criteria related to 
     borrowers' credit scores or other industry standards related 
     to borrowers' financial soundness. In establishing such a 
     higher minimum cash investment requirement, the Secretary 
     shall take into consideration the findings of the most recent 
     annual report to the Congress on minimum cash investments 
     pursuant to section 16(b) of the FHA Reform Act of 2010.''.
       (b) Report.--Not later than the expiration of the 12-month 
     period beginning on the date of the enactment of this Act and 
     annually thereafter, the Secretary of Housing and Urban 
     Development shall submit to the Committee on Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate a report 
     detailing the implementation of the minimum cash investment 
     requirements under section 203(b)(9) of the National Housing 
     Act (12 U.S.C. 1709(b)(9)) and discussing and analyzing 
     options for proposed changes to such requirements, including 
     changes that would take into account borrowers' credit scores 
     or other industry standards related to borrowers' financial 
     soundness. Such report shall--
       (1) analyze the impacts that any actual or proposed such 
     changes are projected to have on--
       (A) the financial soundness of the Mutual Mortgage 
     Insurance Fund;
       (B) the housing finance market of the United States; and
       (C) the number of borrowers served by the Federal Housing 
     Administration;
       (2) explain the reasons for any actual or proposed such 
     changes in the such requirements made since the last report 
     under this subsection;
       (3) evaluate the impact of any actual or proposed such 
     changes in such requirements on the Mutual Mortgage Insurance 
     Fund;
       (4) evaluate the impacts of any actual or proposed such 
     changes on potential mortgagors under mortgages on one- to 
     four-family dwellings insured by the Secretary under the 
     National Housing Act; and
       (5) evaluate the impact of any actual or proposed such 
     changes on the soundness of the housing market in the United 
     States.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentlewoman 
from Illinois (Ms. Bean) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from Illinois.
  Ms. BEAN. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, the amendment I am here to talk to my colleagues about 
today protects taxpayers and increases government accountability while 
preserving a critical program that has helped 37 million Americans 
become homeowners since 1934.
  My amendment requires HUD and the FHA to conduct annual comprehensive 
assessments and considerations for increased minimum down payment 
requirements in the FHA mortgage guarantee program and grants the FHA 
greater authority to do so.
  Currently, the minimum cash investment requirement, commonly referred 
to as the ``down payment requirement,'' is set at 3.5 percent. HUD has 
used its existing authority to propose a 10 percent down payment 
requirement for borrowers with credit scores below 580, and I applaud 
FHA Commissioner Stevens and HUD for this important step to protect 
taxpayer dollars.
  However, it's important for HUD to be given clear direction on 
evaluating future down payment increases as data suggests that the 
foreclosure crisis is not yet over.
  According to core logic, approximately one in four borrowers are 
underwater in their mortgages, which means they owe more than their 
house is currently worth. As borrowers become increasingly underwater, 
they lose incentive to continue to pay their mortgage, which can lead 
to delinquency and further foreclosures.
  While it is difficult for individual homeowners to guard against 
large swings in the housing market, one important tool for preventing 
negative equity is to require a meaningful down payment. To make sure 
HUD is setting down payment requirements for the FHA program that will 
sufficiently protect the Federal Government from excessive defaults, my 
amendment requires HUD to submit an annual report to Congress regarding 
proposed or actual increases. The report would require HUD to analyze 
the impacts that they would have on the financial soundness of the 
Mutual Mortgage Insurance Fund--which is the reserve fund referenced 
frequently in today's debate--also the effect on the housing finance 
market of the United States and the number of borrowers served by the 
FHA program.

                              {time}  1145

  The amendment requires HUD to consider the findings of these annual 
reports in determining whether higher down payment requirements are 
warranted. In addition, it grants authority to HUD to establish 
requirements for all borrowers or a class or classes of borrowers, and 
it directs HUD to consider a borrower's credit score when making these 
decisions.
  Combined, this amendment will mandate HUD to evaluate resetting down 
payment requirements every year, and it will ensure the Federal 
Government is effectively protected from unnecessary risk. This 
amendment allows Congress to protect taxpayers without being overly 
prescriptive or handcuffing the FHA with specific terms. Instead, it 
provides the FHA the authority to make fact-based decisions based on 
the level of defaults and market conditions.
  We learned from the current mortgage crisis that the FHA needs the 
data and the flexibility to address changes in today's more dynamic and 
diverse mortgage market and to protect taxpayers. We also recognize the 
importance of preserving access to affordable mortgages for millions of 
American families. FHA has helped Americans attain home ownership and 
has provided crucial mortgage insurance at times when the private 
market has pulled back from the mortgage market.

[[Page 10485]]

  This legislation well complements the consumer and taxpayer 
protections in the Wall Street reforms Congress is moving towards final 
passage.
  I urge my colleagues to support the Bean amendment and the underlying 
bill.
  I reserve the balance of my time.
  Mrs. CAPITO. I rise to claim time in opposition, although I'm not 
opposed to the amendment.
  The Acting CHAIR. Without objection, the gentlewoman from West 
Virginia is recognized for 5 minutes.
  There was no objection.
  Mrs. CAPITO. As the gentlewoman from Illinois stated, this gives HUD 
the authority to increase FHA down payments and would require an annual 
report. I'd like to ask the gentlelady, if I could, a question about 
her amendment, if she would be willing to help me out with some 
clarification.
  You mentioned in your statement that HUD had already raised the down 
payment requirements with those of credit scores of 580 and below up to 
10 percent. So my question is, it seems apparent to me that HUD already 
has the authority that you are granting in this amendment. HUD can 
already now go in and raise down payments. I would like to know what 
the distinction is or what the difference of the authority is that 
you're granting in your amendment from the authority that HUD already 
has.
  I yield to the gentlewoman from Illinois.
  Ms. BEAN. Well, first of all, it's mandating it. They have to 
evaluate the facts every year and then propose to Congress why they are 
or aren't making changes. So that's different than what they've been 
required to do in the past.
  Mrs. CAPITO. But still, the authority they have to raise down payment 
requirements is already existing in current law.
  Ms. BEAN. They do have the authority to make changes.
  Mrs. CAPITO. Basically, the change is more in the annual report and 
the requirement that HUD has to look at those reports and make a 
statement to the committee and to Congress?
  Ms. BEAN. That's correct.
  Mrs. CAPITO. I thank the gentlelady for clarification, and as I said 
previously, I am prepared to support this amendment.
  I don't believe I have any further requests for time; so I yield back 
the balance of my time.
  Ms. BEAN. I yield such time as she may consume to Congresswoman 
Waters.
  Ms. WATERS. Mr. Chairman, this amendment reiterates the existing 
authority of the Secretary of Housing and Urban Development to raise 
down payment standards if he deems it necessary to ensure the financial 
health of FHA, and that is exactly what Secretary Donovan, with the 
help of Commissioner Stevens is doing because data indicates it is the 
best thing to do for the current economic environment. In addition, the 
Secretary has the authority to reduce this down payment should economic 
conditions change and data indicates that it can be done while 
preserving the health of the capital reserves.
  This amendment also calls for the Secretary to provide an annual 
report on the implementation of the minimum down payment requirement, 
the impact on FHA's capital reserves, the housing market generally, all 
the number of FHA borrowers, and the impact of any proposed changes on 
borrowers on the fund.
  I believe this is a sensible amendment that increases transparency 
and accountability and should receive strong, bipartisan support, and I 
thank Congresswoman Bean for all of the work that she's done on this 
committee and for this amendment.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from Illinois (Ms. Bean).
  The amendment was agreed to.


          Amendment No. 5 Offered by Mr. Garrett of New Jersey

  The Acting CHAIR. It is now in order to consider amendment No. 5 
printed in House Report 111-503.
  Mr. GARRETT of New Jersey. Mr. Chairman, I have an amendment.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 5 offered by Mr. Garrett of New Jersey:
       Page 3, after line 16, insert the following new section:

     SEC. 3. DOWNPAYMENT REQUIREMENT OF 5 PERCENT AND PROHIBITION 
                   OF FINANCING OF CLOSING COSTS.

       Section 203 of the National Housing Act (12 U.S.C. 1709) is 
     amended--
       (1) in subsection (b)(9)(A), by striking ``3.5 percent'' 
     and inserting ``5.0 percent''; and
       (2) in subsections (b)(2) and (k)(3)(A), by striking 
     ``(including such initial service charges, appraisal, 
     inspection, and other fees as the Secretary shall approve)'' 
     each place such term appears and inserting ``(which may not 
     include any initial service charges, appraisal, inspection, 
     or other fees or closing costs as the Secretary shall 
     prohibit)''.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentleman 
from New Jersey (Mr. Garrett) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from New Jersey.
  Mr. GARRETT of New Jersey. I yield myself 3 minutes.
  I want to begin by restating the obvious, and that is, the FHA right 
now is in serious financial trouble. Their book of business during 2005 
and 2006 and 2007 was really pretty small back then, and in 2008, FHA's 
lending took off to really high levels and currently is around 30 
percent of the market. Typically, the default from mortgages occurs not 
in the first couple of years but in three, four, five, six, and seven 
years.
  So we've already seen a sharp increase in delinquency and defaults 
with the FHA book, and we've not even gotten into the typically bad 
areas, the problem years for 2008 and 2009 so we're probably going to 
see those numbers go off the track.
  Some of my colleagues on the other side of the aisle may say that 
there isn't going to be a problem because underwriting standards have 
tightened up some and the average FICO score has gone up. If you think 
about it, that really misses the point. In the mortgage business, you 
make pennies and you lose dollars. Because of the tremendous increase 
in volume, the FHA has insured thousands of more loans from higher 
credit borrowers but they insured thousands of more loans from more 
credit risky borrowers, too. Those numbers just aren't going to balance 
out. So, when the FHA has to pay a claim on default, it costs 
significantly more than the proceeds, than the few extra pennies they 
get by issuing more loans. For example, the premiums from 10 additional 
good loans would not cover the losses from 10 additional riskier loans 
in default. In fact, I doubt it would cover even one.
  This point also debunks the claim that if you raise the down payment 
you will hurt the FHA because the accompanying reduction in volume will 
not allow them to collect as many fees. Why is that? The more loans you 
insure, the more defaults you will experience and you will not be able 
to recoup the losses with those additional premiums.
  A second point. Another argument they will make is that the FHA's LTV 
ratio, the loan-to-value ratio, above 95 percent are a lower percentage 
of the books today than they were just a few years ago, but this fails 
to acknowledge that it's because their book has grown so much over the 
last few years. So I would argue this, that of the total numbers, there 
are significantly more loans over there that are above 95 percent LTV 
and over 96.5 which is a critical number simply because of their 
ability to finance the up-front premiums now. And with more loans with 
higher LTVs means what? More riskier loans.
  FHA's own actuarial report says this: ``Based on previous econometric 
studies of mortgage behavior, a borrower's equity position in the 
mortgaged house is one of the most important drivers of default 
behavior. The larger the equity position a borrower has, the greater 
the incentive to avoid default on the loan.''
  So that's why I've come up with this amendment. It's not a 20 percent 
down payment or 15 percent or even a 10 percent, which many private 
lenders right

[[Page 10486]]

now require, but we go for the reasonable one, the compromise, 5 
percent down payment. I support home owners as much as the next guy, 
and I want everybody to be able to afford their own home if they could. 
But we have to learn something from our past history, and we have to be 
responsible here in this House.
  I find the debate over the problems with the FHA eerily similar to 
the debates we've had leading up to Fannie Mae and Freddie Mac. As 
taxpayers now are pumping hundreds of billions of dollars into Fannie 
and Freddie now, history has shown that we were on the right side of 
the debate then with Fannie and Freddie then, and I want to make sure 
that when this FHA bill goes through this House now, and at the 
conclusion of this debate as well, I want to make sure that myself and 
all of my colleagues are on the right side of this debate as well.
  So I urge my colleagues to be all on the right side of this, this 
debate in history and to support my amendment.
  I reserve the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, I rise to claim the time in 
opposition.
  The Acting CHAIR. The gentleman is recognized for 5 minutes.
  Mr. FRANK of Massachusetts. I yield myself 3 minutes.
  Mr. Chairman, there were several aspects of the debate over housing 
during the period that led up to the crisis. Part of it was over Fannie 
Mae and Freddie Mac, but an even bigger part--because it involved 
Fannie Mae and Freddie Mac--was over sub-prime loans being made 
largely, although not entirely, on the unregulated banking system, and 
there were those who defended that. There were those who opposed 
efforts to rein it in.
  In fact, with regard to Fannie Mae and Freddie Mac, I changed my own 
position with regard to them when in 2004 the administration, without 
congressional input, ordered Fannie Mae and Freddie Mac to buy more 
loans from people below the median income. We tried, many of us, during 
the period of 2004, 2005, and 2006 to get legislation adopted to ban 
sub-prime loans being granted imprudently. We had, the Congress, given 
the Federal Reserve the authority to do that in 1994, but Mr. Greenspan 
refused to do that. He since has apologized for that error.
  So the question was not whether or not there was a general lack of 
discipline but whether there was a particular lack of discipline in 
containing sub-prime mortgages. The relevance of that is that the FHA 
doesn't do that. In fact, at a time of general ideological opposition 
of regulation of the mortgage market outside the banking system, there 
was very little regulation of sub-prime mortgages being granted to 
people who couldn't afford them, who made no down payment, who didn't 
have to document their income. Because of all that, we ran into these 
problems, and the FHA's percentage went down. That's a major reason why 
the FHA went down. The FHA has never been guilty of that laxity of 
practice.
  So, part of the reason for the increase in the FHA share is that we 
have been able finally to cut back on the sub-prime mortgages being 
granted imprudently, and the FHA has much stricter standards. Yet, I 
want to stress--and this is a major cause of the Fannie and Freddie 
problem is that they were pushed into buying sub- prime mortgages that 
never should have been given in the first place. That's not the FHA.
  It's also the case that the FHA has stepped up in recent years, 
probably at congressional urging. The down payment has gone up. The up-
front fee has gone up. The FHA has power now to go up to a 10 percent 
and has done this, a 10 percent down payment for people with a weak 
credit score. That's already part of the FHA's proposal.
  The gentlewoman from Illinois' amendment just adopted makes it clear 
they can do even more, but to go beyond that, to the degree the 
gentleman from New Jersey wants to do, would undercut the ability of 
people who are capable of paying their mortgages from getting mortgage 
loans. That's why we have an unusual coalition opposing this amendment. 
It actually included a majority of the Republicans on the Committee on 
Financial Services who voted against this amendment, but it includes 
people on all sides of the housing market.
  The Acting CHAIR. The time of the gentleman has expired.
  Mr. FRANK of Massachusetts. I yield myself an additional 30 seconds.
  We have the Consumer Federation, the Center for Responsible Lending, 
the people who have distinguished themselves by being opposed to sub-
prime lending when others in this Chamber didn't want any restriction, 
and the Realtors and the home builders, those who are in the business 
of providing housing, those who are advocates for consumers come 
together to say this goes too far and would go beyond what is needed 
for responsible lending.
  I reserve the balance of my time.
  Mr. GARRETT of New Jersey. I yield 1 minute to the gentleman from 
Arizona (Mr. Flake).
  Mr. FLAKE. I thank the gentleman for yielding.
  I rise in support of the amendment.
  We can learn from history but we really can't revise it as much as we 
want to try. We're hearing the same arguments now that we heard about 
Fannie and Freddie, that there's no trouble, they're solvent, 
everything's fine. We're hearing the same thing with FHA now, but I can 
tell you, when FHA insured simply, what was it one in fifty homes, now 
it's one in four, or guarantees the loan on that amount, we're going to 
face trouble here unless we make additional changes to the ones that 
are being proposed to this bill. This is a prudent amendment.
  It would raise from 3.5 to 5 percent the minimum down payment. It 
gives more individuals more skin in the game for their home and fewer 
individuals will walk away. They will try to work it out and try to 
make their mortgages go on.

                              {time}  1200

  We cannot afford to ignore history, and if we reject this amendment, 
we are ignoring history.
  Mr. FRANK of Massachusetts. Mr. Speaker, I have the right to close.
  I reserve the balance of my time.
  Mr. GARRETT of New Jersey. Mr. Speaker, to close, I take, to begin 
with, the words of the gentlewoman from Illinois who really makes my 
case in her amendment which, really, unfortunately, does not go far 
enough. She says, on the floor, that the FHA does need clear direction 
what to do in this area of downpayments. Unfortunately, they have not 
done the job up to this point in time, and now she says we have to give 
them that clear direction. That is what my amendment would do.
  In no uncertain terms, we would say that those people who are not the 
best risks out there should have a minimum of 5 percent down. I also 
take from her very own words, she points out the fact that one out of 
four homes right now are under water. Well, do we want to find 
ourselves in this situation again 4 or 5 years from now from those very 
same people when one out of four homeowners are under water when they 
only have a few couple of percentage points down on their house that 
they are going to say, I can simply walk away from this house because 
there is really not much of an investment in it.
  I don't think we want to rehash this argument again. I don't think we 
want to be in this situation again where the American taxpayer is put 
on the hook, just as it is now, to the tune of $400 billion over the 
life of the GSAs. We don't want to have to come out and bail out FHAs.
  Let's do the prudent thing right now. Let's be on the right side of 
history and make sure we have a prudent downpayment for FHA loans.
  I yield back the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, may I inquire how much time 
remains?
  The Acting CHAIR. The gentleman from Massachusetts has 1\1/2\ 
minutes.
  Mr. FRANK of Massachusetts. First, Mr. Chairman, let me be clear, the 
FHA has gone beyond the gentleman from New Jersey with regard to 
borrowers who are risky. For borrowers

[[Page 10487]]

with a 580 or below credit score, the FHA has already used the 
authority we have given them to raise the downpayment to 10 percent, so 
we are talking about people above the 580 credit score.
  Secondly, there was a total misreading of history with Fannie Mae and 
Freddie Mac. Yes, some of us thought earlier there wasn't a problem. 
After it was in order by the Bush administration in 2004 for them to 
get to more than 50 percent of purchases or mortgages for people below 
the median income, many of us changed our position and pushed for 
reform of Fannie Mae and Freddie Mac.
  Unfortunately, that didn't happen, because of a dispute between the 
Republican House and the Republican Senate, until 2007, when this House 
took the lead and finally got it done in 2008. But the problem was that 
throughout that, we had ideological opposition from the deregulators 
against restricting subprime loans of the sort that led to trouble, and 
the FHA doesn't do that.
  Mr. Speaker, I would submit for the Record letters from the Mortgage 
Bankers Association, National Association of Home Builders, National 
Association of REALTORS, Centers for Responsible Lending, the National 
Association of Consumer Advocates, the National Council of La Raza, 
Consumer Federation of America who point out not that we don't need 
restriction but that the FHA already has them. Again, to confuse this 
with the situation in which ideological opposition to sensible 
regulation allowed subprime loans to predominate outside the FHA is a 
confusion of the reality.

                                                     June 9, 2010.
     Hon. Barney Frank,
     Chair, House Committee on Financial Services, Rayburn House 
         Office Building, Washington, DC.
       Dear Congressman Frank: The Federal Housing 
     Administration's mortgage insurance program has never been 
     more important to our housing markets than it is today. 
     During this period of prolonged stress in our markets, 
     Congress should avoid making any program changes that would 
     further harm consumers and stall our economic recovery. The 
     organizations listed below strongly oppose amendments to H.R. 
     5072, the FHA Reform Act, which would increase FHA's 
     downpayment requirement, decrease FHA's loan limits, or 
     otherwise limit FHA's ability to insure loans.
       Raising FHA's downpayment requirement will do little to 
     strengthen FHA's capital reserve ratio. Rather, it will put 
     homeownership out of reach for many families and for others 
     could deplete their cash reserves for home and other 
     emergencies. Increasing FHA's downpayment could 
     disenfranchise more than 300,000 responsible homeowners. We 
     strongly oppose this amendment offered by Rep. Garrett (R-
     NJ).
       We also oppose an amendment offered by Rep. Price (R-GA) 
     that would limit FHA's market share to 10 percent of the 
     housing finance market. We all welcome the return of private 
     lending and corresponding reduction in FHA's market share, as 
     that will indicate a return to a healthy housing market. But 
     today, FHA is appropriately serving its countercyclical role 
     of providing credit and needed liquidity when the private 
     market is not available to many homebuyers. Legislating an 
     arbitrary reduction in market share in the midst of a housing 
     downturn will have a negative impact on homeownership. We 
     strongly oppose this amendment which will dramatically harm 
     our nation's economic recovery.
       Lastly, we ask you to oppose an amendment by Rep. Turner 
     (R-OH) that would reduce the FHA loan limits. FHA's loan 
     limits were temporarily increased in the Economic Stimulus 
     Act of 2008. These higher limits allow American families in 
     communities nationwide to obtain safe, affordable mortgage 
     financing. Decreasing these limits would have a significant 
     impact on the recovery of many housing markets and the 
     overall liquidity of the mortgage industry. Today the private 
     market for loans above the existing limits is small. Reducing 
     the FHA limits will paralyze home sales above the cap, and 
     hurt our housing recovery.
       FHA is a critical part of our housing economy. Its programs 
     offer borrowers access to prime-rate mortgages, require 
     stringent underwriting, and will not insure a loan with a 
     loan-to-value greater than 96.5 percent. We urge you to 
     oppose these amendments that will only hamper this important 
     program.
           Sincerely,
     Mortgage Bankers Association.
     National Association of Home Builders.
     National Association of REALTORS'.
                                  ____

                                                     June 7, 2010.
       Dear Representative: We write in strong support of H.R. 
     5072, FHA Reform Act of 2010, scheduled for consideration by 
     the House this week. The Federal Housing Administration (FHA) 
     is playing its intended countercyclical role, providing 
     borrowers with access to prime credit. Moreover, the FHA has 
     already taken aggressive steps to manage credit risk and it 
     has appropriate discretion to take additional action as 
     necessary. H.R. 5072 provides the necessary tools to insure 
     the financial stability of FHA and to protect taxpayers from 
     risk.
       We strongly oppose any amendments to further raise the FHA-
     required downpayment. Congress addressed this issue in 2008 
     with the passage of the Housing and Economic Recovery Act, 
     which increased FHA's downpayment requirement from 3 percent 
     to 3.5 percent. The current downpayment requirement 
     represents a significant financial commitment and sufficient 
     investment to insure a borrower's seriousness about 
     homeownership. Increasing FHA's downpayment to 5 percent 
     would, according to the U.S. Department of Housing and Urban 
     Development, reduce the volume of loans endorsed by FHA by 
     more than 40 percent, while only contributing $500 million in 
     additional budget receipts (as opposed to the expected $4.1 
     billion from the other announced changes to the program).
       The proposed change could have an especially harsh impact 
     on African-American and Hispanic borrowers, who traditionally 
     have much lower accumulated wealth and have benefited from 
     the opportunities that fully documented, standard FHA loans 
     with low down payments offer.
       FHA is a critical part of our nation's economic recovery. 
     Increasing the downpayment requirement will make 
     homeownership more difficult for American families and 
     disenfranchise more than 300,000 responsible homebuyers. This 
     is not the time to make unnecessary steps to a program that 
     is serving such a vital function in our housing finance 
     system. We urge you to oppose any amendments to increase 
     FHA's downpayment requirement.
           Sincerely,
     Center for Responsible Lending.
     Consumer Federation of America.
     National Association of Consumer Advocates.
     National Association of REALTORS'.
     National Council of La Raza.
     National Fair Housing Alliance.

  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from New Jersey (Mr. Garrett).
  The question was taken; and the Acting Chair announced that the noes 
appeared to have it.
  Mr. GARRETT of New Jersey. Mr. Chair, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from New Jersey 
will be postponed.


                 Amendment No. 6 Offered by Mr. Tierney

  The Acting CHAIR (Mr. Cuellar). It is now in order to consider 
amendment No. 6 printed in House Report 111-503.
  Mr. TIERNEY. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       At the end of the bill, add the following new section:

     SEC. 16. MORTGAGE INSURANCE PREMIUM REFUNDS.

       (a) Authority.--The Secretary of Housing and Urban 
     Development shall, to the extent that amounts are made 
     available pursuant to subsection (c), provide refunds of 
     unearned premium charges paid at the time of insurance for 
     mortgage insurance under title II of the National Housing Act 
     (12 U.S.C. 1707 et seq.) to or on behalf of mortgagors under 
     mortgages described in subsection (b).
       (b) Eligible Mortgages.--A mortgage described in this 
     section is a mortgage on a one- to four-family dwelling 
     that--
       (1) was insured under title II of the National Housing Act 
     (12 U.S.C. 1707 et seq.);
       (2) is otherwise eligible, under the last sentence of 
     subparagraph (A) of section 203(c)(2) of such Act (12 U.S.C. 
     1709(c)(2)(A)), for a refund of all unearned premium charges 
     paid on the mortgage pursuant to such subparagraph, except 
     that the mortgage--
       (A) was closed before December 8, 2004; and
       (B) was endorsed on or after such date.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated for each fiscal year such sums as may be 
     necessary to provide refunds of unearned mortgage insurance 
     premiums pursuant to this section.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentleman 
from Massachusetts (Mr. Tierney) and

[[Page 10488]]

a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. TIERNEY. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, there are instances when, after we have done all the 
research and completed all other options and exhausted them, a 
legislative remedy may still be required in order to help our 
constituents in our district offices with a particular problem. Those 
occasions give us the opportunity to evidence how Congress can work on 
their behalf, how Congress can help solve problems, and how Congress 
could have a direct and positive effect on people's lives. This is one 
of those times, and I appreciate the fact that the Rules Committee has 
made this amendment in order.
  This amendment seeks to assist those people who, while they were in 
the process of pursuing their dream of homeownership, were unfairly 
impacted by a statutory change to HUD's upfront mortgage insurance 
premium refund policy. Now, under HUD's Upfront Mortgage Insurance 
Premium Refund policy, borrowers paid an upfront mortgage insurance of 
1\1/2\ percent of their FHA loan amount, and if they prepaid their 
loans, the borrowers could be due refunds on that prepaid insurance 
amount.
  However, in 2005, with the Consolidated Appropriations Act, Congress 
included language directing that the mortgages after the time of that 
date of enactment, which was December 8, 2004, that would no longer be 
true. Borrowers would no longer be eligible for refunds of their 
prepaid insurance.
  So now there are about 15,000 people in this country who tried to do 
the right thing and play by the rules. They are constituents of all of 
ours who closed on their mortgage before that December 8, 2004, date in 
order to be able to get their refund. But, regrettably, they were 
prevented from receiving their refund because HUD didn't endorse their 
loan until after December 8, 2004. Now the constituents tell us they 
were never adequately informed by the lender of those potential 
provisions, and the lenders tell us they didn't do it because they 
weren't told by HUD until after the effective date, in fact, not until 
January of 2005.
  I know of one particular family in my district from Gloucester, 
Massachusetts, who were harmed by that new provision in the law. They 
did everything right. They played by the rules. They closed their loan 
in November of 2004 without notice of the change of law, but they have 
been prevented from receiving their refund of some $4,200 because HUD 
didn't do their mortgage until after December 10 of 2004. Certainly, 
that's an unintended consequence of the provisions in the Consolidated 
Appropriations Act of 2005.
  This amendment makes a meaningful first step toward helping certain 
eligible homeowners and borrowers, many of whom are low-income 
families, as I say, who played by the rules. I say this is a first step 
because we later have to go to Appropriations to get money to fulfill 
this policy. But this clearly is the right policy. It is the fair thing 
to do. It is the right thing to do, and we have to discuss and argue 
about the money to appropriate in order to make whole these people at a 
later date.
  But I suggest that if we all want to do the right thing by policy, I 
urge my colleagues to support this amendment.
  I reserve the balance of my time.
  Mrs. CAPITO. Mr. Chairman, I rise to claim time in opposition to the 
amendment.
  The Acting CHAIR. The gentlewoman from West Virginia is recognized 
for 5 minutes.
  Mrs. CAPITO. I think the gentleman from Massachusetts brings forward 
an issue, and I have great sympathy for those who are caught basically, 
it sounds like, in a bureaucratic maze here, missed a date not really 
by their own doing but by maybe just because of the process they were 
involved in.
  The question I have, and the reason I have skepticism on the 
gentleman's amendment, he began with, I think the number that the 
gentleman said, this may influence 15,000 folks.
  Was that the number that you said in your statement?
  I yield to the gentleman from Massachusetts.
  Mr. TIERNEY. Yes, 15,593, according to the Department.
  Mrs. CAPITO. The other question I would ask the gentleman, and I know 
we would have to go to Appropriations to get the money allotted for 
this particular amendment: What would be the approximate cost of 
something like this? This is something where we are in this time of 
debt and deficit, and we need to cut our spending here. I think we need 
to be very vigilant on the bottom line. What is the bottom line of this 
amendment?
  Mr. TIERNEY. I thank you for raising that point that this is a two-
step process. This part of the process, in fact, talks about whether we 
will have a policy that will enable us at some appropriate time to 
appropriate the money.
  Mrs. CAPITO. Right.
  Mr. TIERNEY. We are not appropriating the money now, and I think 
that's a debate for another day and another time if we decide whether 
we want to be fair to these people or put it off for some other time, 
but the total for that 15,593 people, according to the Department, 
would be $10,372,661.61, more or less.
  Mrs. CAPITO. Thank you. Very precise. I appreciate that.
  I still have skepticism even about 10 million, which in everyday 
dollars is still quite a bit of money. And, as I said, we need to look 
at what we are doing on the bottom line here.
  So, while I am very sympathetic and I think that the amendment has 
some merit, I would stand in opposition to the amendment.
  I yield back the balance of my time.
  Mr. TIERNEY. Mr. Chairman, I understand that $10 million is $10 
million, and that's a lot of money to each one of us individually and, 
of course, we should be concerned. It's not proportionately a lot in 
our $1.7 trillion budget.
  But I think the real number to look at here is what does it mean to 
these individuals who are harmed by government policy on no doing of 
their own. So if it's $4,200 to a family in my district or $4,200 to a 
family in the gentlewoman's district, that's what's driving our economy 
right now.
  For people to have every expectation of getting the return of that 
money and to play by the rules only to have the bureaucracy undercut 
them, I think that's the issue of fairness that we are dealing with 
here.
  Now, we will have an issue later on about whether or not we think now 
is the appropriate time to put $10 million on the floor to help people 
out, and that will be a day for them. But I think we should deal with 
the policy now and authorize that to be done at some date either this 
year or next year, or whenever we can make the argument in Congress 
that it's time to be fair.
  I think we can all say in this amount, given the huge meaning this is 
to individuals, now is the time to be fair; 15,000 people wronged by 
government bureaucracy in amounts that are every bit as significant to 
them individually, the $4,200, as $10 million may be to all of us in 
the aggregate. It's an impact on their lives. It's whether or not their 
families are going to be able to make it through this crisis, whether 
or not they are going to be able to meet the everyday needs of food, 
health care, education, clothing and those things that are important to 
their family.
  Again, in closing, I just reiterate, this is the authorization 
process. Let's set the policy of fairness. We can debate the other 
later. And let's keep in mind these people played by the rules, did 
what was right, and deserve to know, at least as a policy matter, 
Congress will stand with them.
  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Massachusetts (Mr. Tierney).
  The amendment was agreed to.


            Amendment No. 7 Offered by Mr. Price of Georgia

  The Acting CHAIR. It is now in order to consider amendment No. 7 
printed in House Report 111-503.
  Mr. PRICE of Georgia. Mr. Chair, I have an amendment at the desk.

[[Page 10489]]

  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       At the end of the bill, add the following new section:

     SEC. 16. LIMITING ON FHA SHARE OF MORTGAGE MARKET.

       (a) 10 Percent Limitation.--Section 203 of the National 
     Housing Act (12 U.S.C. 1709) is amended by inserting after 
     subsection (h) the following new subsection:
       ``(i) Limitation on FHA Market Share.--Notwithstanding any 
     other provision of law, the aggregate number of mortgages 
     secured by one- to four-family dwellings that are insured 
     under this title in fiscal year 2012 or any fiscal year 
     thereafter may not exceed 10 percent of the aggregate number 
     of mortgages on such dwellings originated in the United 
     States (but not including mortgages insured under this 
     title), as determined by the Secretary after consultation 
     with appropriate Federal financial regulatory agencies, 
     during the preceding fiscal year.''.
       (b) Plan.--Not later than the expiration of the 90-day 
     period beginning upon the date of the enactment of this Act, 
     the Secretary of Housing and Urban Development shall submit 
     to the Congress a plan setting forth a strategy and actions 
     to be taken to ensure compliance with section 203(i) of the 
     National Housing Act, as added by the amendment made by 
     subsection (a) of this section.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentleman 
from Georgia (Mr. Price) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Georgia.
  Mr. PRICE of Georgia. I want to commend the chairman of the committee 
and the ranking member for moving this particular piece of legislation. 
I particularly want to commend the gentlewoman from West Virginia (Mrs. 
Capito) for her great work in this area. She has been a dynamic and an 
excellent leader in this area and, indeed, she is to be commended.
  Mr. Chairman, this bill incorporates some very positive moves. 
Clearly, the housing market has had significant challenges, and the 
question that we ought to be asking ourselves is how best to recover. 
Most experts would agree that, in order to move forward, we need to 
move toward less market distortion.
  It might be helpful if we focus on the FHA's mission and the focus 
and the requirements that they have on them. We all support the FHA 
mission. The mission is to serve first-time homebuyers in underserved 
communities, but the FHA didn't get to a 30 percent market share, Mr. 
Chairman, by lending to first-time homebuyers and by serving 
underserved communities.
  In terms of the requirements of the FHA, the requirements of the FHA 
are 3.5 percent downpayment. The private sector requires at least 10 
percent. The FHA is required to hold a 2 percent capital reserve ratio, 
but it's actual ratio is 0.53 percent. A bank is required to hold 10 
percent capital reserve ratio.
  A recent editorial in the Wall Street Journal said, According to 
Mortgage Bankers Association data, more than one in eight FHA loans is 
now delinquent, nearly triple the rate on conventional nonsubprime loan 
portfolios. Another 7.5 percent agreed that FHA loans are in serious 
delinquency, which means at least 3 months overdue. The FHA is almost 
certainly going to need a taxpayer bailout in the months ahead. The 
only debate will be about how much it will cost.
  A former chief credit officer of Fannie and Freddie Mae, Edward 
Pinto, notes that ``FHA's high-risk lending practices negatively impact 
the housing finance marketplace.'' Mr. Chairman, you can translate that 
into being increasing taxpayer exposure.

                              {time}  1215

  So if we are honest with ourselves, when appropriately sized, the FHA 
does indeed do a wonderful job and is very helpful. But at this point, 
this is just another government program that is distorting the market. 
FHA's huge market share is a hindrance to regaining equity in the 
housing market. In addition, Fannie and Freddie's unlimited government 
lifeline is also a hindrance to the housing recovery.
  My amendment would ensure that the FHA no longer crowds out the 
private market for home loans. The amendment is a modest first step to 
cap FHA new origination market share to no more than 10 percent of the 
private-market home loans each year, beginning in 2010 so there is 
significant time to adjust, so the American people are not further 
exposed to the next bailout. Mr. Chairman, that means the taxpayer is 
not exposed to greater liability.
  The American people are sick and tired of bailouts. They see another 
one on the horizon. It is time for us to act. No more bailouts. What 
they are telling us across this country is to stop the madness. This 
amendment begins the process of stopping that madness.
  Mr. Chairman, I reserve the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, I rise in opposition to the 
amendment.
  The Acting CHAIR. The gentleman is recognized for 5 minutes.
  Mr. FRANK of Massachusetts. I yield 2 minutes to the gentleman from 
California (Mr. Sherman).
  Mr. SHERMAN. At best, we have a fragile recovery from a massive 
recession caused by a precipitous decline in home prices. Now, I know 
the gentleman is well-intentioned, but nothing is more likely to cause 
a double dip in this recession than the second precipitous drop in home 
prices that would be caused by pulling FHA and, as the gentleman 
argues, Fannie and Freddie out of the home lending market.
  Right now, FHA is 30 percent of the home purchase finance market, 
about over half of that market for African Americans, 45 percent for 
Hispanics. Are we going to tell one-third of American home buyers, 
almost half or over half Hispanics and African Americans seeking to buy 
homes, that they are not going to be able to buy those homes? Because, 
if they can't get FHA financing, the private sector may be there, but 
at much higher rates. And there is no way that these individuals will 
be able to afford to buy those homes.
  With fewer buyers, you will see a precipitous decline in prices. That 
devastates communities further, devastates the American economy 
further.
  FHA is actuarially sound. It charges fees for the services and the 
guarantees that it provides. And to cut its role in the market by a 
third as part of an overall policy designed to take FHA, Fannie Mae, 
and Freddie Mac out of the market ignores the fact that, in these 
troubled times, those three entities--FHA, Fannie, and Freddie--account 
for almost all of the home mortgages obtained by middle-class and 
working families.
  So we should defeat the gentleman's amendment. And I want to point 
out it is opposed by the National Association of Realtors, the National 
Association of Home Builders, and the Mortgage Bankers Association.
  Mr. PRICE of Georgia. Mr. Chairman, may I ask how much time remains 
on each side?
  The Acting CHAIR. The gentleman from Georgia has 1\1/2\ minutes. The 
gentleman from Massachusetts has 3 minutes.
  Mr. PRICE of Georgia. Mr. Chairman, I appreciate the gentleman from 
California's comments. There is no doubt we are indeed in a fragile 
housing market, which is precisely why this policy would not take 
effect until 2012. It gives the Secretary significant flexibility in 
defining what that 10 percent is, but what it tries to do is to right-
size the number of mortgages, the percent of the mortgages that the FHA 
insures.
  I want to point out to all that 30 percent is a huge portion, 
historically, as it relates to what the FHA single-family insurance 
activity has comprised. From 2001 to 2007, the numbers were under 10 
percent every single year for all FHA family insurance activity. So the 
amount of 10 percent is a responsible, a reasonable number.
  What it tries to do, again, is to decrease the effect of intervention 
into the market that distorts the market. Remember, Mr. Chairman, that 
when the government distorts the market it makes it much more difficult 
for the market to recover and for us to make certain that we move in 
the direction of economic activity that we need.
  Again, the taxpayers of this country are sick and tired of bailouts. 
This is another bailout in the making if we

[[Page 10490]]

allow the process that is currently in place to continue. We should 
limit the FHA exposure to 10 percent. We do it in a responsible way, by 
saying that it would begin in 2012. We provide significant flexibility 
for the Secretary so that the program will work well.
  I urge my colleagues to adopt the amendment.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield myself the balance 
of my time.
  First, I do note a certain irony. I am glad to see my colleagues, the 
gentleman from New Jersey, the gentleman from Georgia, praise the 
gentlewoman from West Virginia for a bill which they apparently found 
severely lacking.
  I do note the gentlewoman from West Virginia voted against the prior 
amendment from the gentleman from New Jersey. I don't know where she is 
on this one, but it wasn't in the bill that I think she introduced, and 
for very good reason: A 10 percent cap is wholly arbitrary.
  Now, the gentleman says it's going to crowd out the private market, 
but the leading participants in the private housing market oppose this 
amendment, including the Mortgage Bankers, as well as Realtors and Home 
Builders, as well as all consumer groups.
  Beyond that, the reason the FHA went down so far from 2001 to 2007--
interesting group of years; guess what was happening during that 
time?--was that there was a resistance to regulation of the subprime 
market.
  The Federal Reserve was ignoring legislation Congress gave it in 1994 
to regulate subprime lending. The Bush administration, in 2004, ordered 
Fannie Mae and Freddie Mac to increase the subprime loans they bought, 
which is one reason why I changed my position on the need to be tougher 
in the regulatory field. And the FHA lost out because these imprudent 
mortgages were being given without regulation. The FHA doesn't do the 
kind of mortgages that led to problems.
  Beyond that, in recent years, towards the end of the Bush 
administration and with even greater force during the Obama 
administration, the FHA has been improving. The FHA has on its own 
said, if you've got a 580 credit score or below, it's a 10 percent 
downpayment. We mandated that they go from 3 to 3.5 percent downpayment 
and increase the upfront fees.
  In this bill--and the gentlewoman from West Virginia deserves a great 
deal of credit, along with our colleague, the gentlewoman from 
California--the FHA is given credit to require lenders who get loans 
placed with the FHA in violation of the guidelines to take back those 
loans. So it wouldn't be the taxpayer that would be on the hook for 
those loans that shouldn't have been granted and that violated the good 
guidelines of the FHA; it will be the lender.
  It also gives them the power to debar people who have a bad record, 
which is something they haven't had before.
  So we are not talking about the old FHA; we are talking about an 
improved one. And we are talking about an FHA that stands in great 
contrast to the unregulated subprime market.
  Finally, the gentleman says, ``Well, it doesn't take effect until 
2012.'' Neither he nor I knows what the housing market will look like 
in 2012. And if there's a reason not to do it now, that might also be 
there in 2012. No one can predict whether the housing--and maybe in 
2015 it will be back again into trouble.
  The housing market we don't believe is going to crash like it did 
before, but the basic point is this: The FHA has been the alternative 
to the kind of unregulated, irresponsible subprime mortgages that many 
of my friends on the other side protected, the kind of mortgages which 
they prevented us from regulating until 2007 when we were able to pass 
a bill in the House, over the objection of many of those who have 
spoken already, to regulate subprime mortgages. And because we did 
that, the Federal Reserve finally used its authority.
  I hope the amendment is defeated.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Georgia (Mr. Price).
  The question was taken; and the Acting Chair announced that the noes 
appeared to have it.
  Mr. PRICE of Georgia. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Georgia will 
be postponed.


                 Amendment No. 8 Offered by Mr. Weiner

  The Acting CHAIR. It is now in order to consider amendment No. 8 
printed in House Report 111-503.
  Mr. WEINER. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 8 offered by Mr. Weiner:
       At the end of the bill, add the following new section:

     SEC. 16. MAXIMUM MORTGAGE AMOUNT LIMITS FOR MULTIFAMILY 
                   HOUSING.

       (a) Elevator-type Structures.--
       (1) Amendments.--The National Housing Act is amended in 
     each of the provisions specified in paragraph (2)--
       (A) by inserting ``with sound standards of construction and 
     design'' after ``elevator-type structures'' the first place 
     such term appears; and
       (B) by striking ``to not to exceed'' and all that follows 
     through ``sound standards of construction and design'' each 
     place such terms appear and inserting ``by not more than 50 
     percent of the amounts specified for each unit size''.
       (2) Provisions amended.--The provisions of the National 
     Housing Act specified in this paragraph are as follows:
       (A) Subparagraph (A) of section 207(c)(3) (12 U.S.C. 
     1713(c)(3)(A)).
       (B) Subparagraph (A) of section 213(b)(2) (12 U.S.C. 
     1715e(b)(2)(A)).
       (C) Subclause (I) of section 220(d)(3)(B)(iii) (12 U.S.C. 
     1715k(d)(3)(B)(iii)(I)).
       (D) In section 221(d) (12 U.S.C. 1715l(d))--
       (i) subclause (I) of paragraph (3)(ii); and
       (ii) subclause (I) of paragraph (4)(ii).
       (E) Subparagraph (A) of section 231(c)(2) (12 U.S.C. 
     1715v(c)(2)(A)).
       (F) Subparagraph (A) of section 234(e)(3) (12 U.S.C. 
     1715y(e)(3)(A)).
       (b) Extremely High-cost Areas.--Section 214 of the National 
     Housing Act (12 U.S.C. 1715d) is amended--
       (1) in the first sentence--
       (A) by inserting ``, or with respect to projects consisting 
     of more than four dwelling units located in an extremely 
     high-cost area as determined by the Secretary'' after ``or 
     the Virgin Islands'' the first place such term appears;
       (B) by inserting ``, or to construct projects consisting of 
     more than four dwelling units on property located in an 
     extremely high-cost area as determined by the Secretary'' 
     after ``or the Virgin Islands'' the second place such term 
     appears; and
       (C) by inserting ``, or with respect to projects consisting 
     of more than four dwelling units located in an extremely 
     high-cost area as determined by the Secretary'' after ``or 
     the Virgin Islands'' the third place such term appears;
       (2) in the second sentence--
       (A) by inserting ``, or with respect to a project 
     consisting of more than four dwelling units located in an 
     extremely high-cost area as determined by the Secretary,'' 
     after ``or the Virgin Islands'' the first place such term 
     appears; and
       (B) by inserting ``, or in the case of a project consisting 
     of more than four dwelling units in an extremely high-cost 
     area as determined by the Secretary, in such extremely high-
     cost area,'' after ``or the Virgin Islands'' the second place 
     such term appears; and
       (3) in the section heading, by striking ``and the virgin 
     islands'' and inserting ``the virgin islands, and extremely 
     high-cost areas''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to mortgages insured under title II of the 
     National Housing Act after September 30, 2010.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentleman 
from New York (Mr. Weiner) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from New York.
  Mr. WEINER. Mr. Chairman, I appreciate the opportunity. I also want 
to thank my colleague, Mr. Miller, with whom I offer this amendment.
  This is a similar amendment--in fact, it is identical to one that was 
adopted by voice vote. There are problems with some FHA programs, and 
they are addressed in this bill. And there are some losing programs; 
there are some programs that simply haven't worked out very well.
  One program that has been a consistent money-maker for the taxpayer 
and one that has driven the marketplace to do good things is the 
Multifamily Loan Program. However, in that

[[Page 10491]]

program, the limits set for how much the loan can be guaranteed for 
have not risen as fast as the cost in a lot of communities.
  So what the Weiner-Miller amendment would do is simply raise the 
limits to keep up with the cost and create something called an 
``extreme high-cost area.''
  The way the program works is they essentially say, this is the limit 
to which we will underwrite, guarantee a loan for new construction or 
to modify a home. But if you have an apartment building--four, five, 
10, 50, 100 units--obviously the costs wind up going up as you need 
things like elevators and HVAC going into big buildings. And what 
happens is, in places like Los Angeles and New York and Las Vegas and 
Miami, these costs have simply not been kept up with. The result has 
been that the loan program has not been very useful there.
  What we do is we take a loan limit of $183,000, almost $184,000, 
create a new extreme high-cost area that the Secretary will be able to 
designate where the limits will be higher, $377,000.
  For those people who are concerned, well, are we going in the wrong 
direction and giving too much exposure to a program that we should be 
tightening up, this is a program that, unlike the single-family homes, 
where the program there has an extreme delinquency rate of about 8 
percent, this one only has one of 0.3 percent.
  Frankly, this is not a problem program, so we are just increasing the 
limits on one that really would encourage people to make loans to small 
businesses for developing.
  I urge a ``yes'' vote.
  I reserve the balance of my time.
  Mr. GARY G. MILLER of California. Mr. Chairman, I claim time in 
opposition to the amendment, although I am not in opposition to the 
amendment.
  The Acting CHAIR. Without objection, the gentleman is recognized for 
5 minutes.
  There was no objection.
  Mr. GARY G. MILLER of California. I yield myself such time as I may 
consume.
  This amendment is exactly the same as the bill that passed this body 
by a voice vote last year, the FHA Multifamily Loan Limit Adjustment 
Act.
  FHA's multifamily mortgage insurance programs enable qualified 
borrowers to obtain long-term, fixed-rate financing for a variety of 
multifamily properties that are affordable to low- and moderate-income 
families.
  In the most expensive cites, it is very difficult for these workers, 
particularly those starting out in the workforce, to find affordable 
rental housing where they work. The FHA multifamily mortgage insurance 
program can help, but, due to its loan limits, there were only three 
FHA-insured multifamily loans for high-rise construction or 
rehabilitation approved in fiscal year 2007 and 2008--understand, just 
three--and that is a huge problem in this country. The loan limits in 
high-cost areas are simply too low.
  According to the Mortgage Bankers Association, the lack of available 
loans is creating serious problems concentrated in major cities where 
high-rise construction is involved. In fact, their data shows that 
while elevator buildings cost 45 percent more than non-elevator 
structures, the current limit for these structures are less than 10 
percent higher than non-elevator structures.
  Developers are simply unable to provide affordable housing units in 
high-cost areas because the current statutory loan limits for FHA 
mortgage insurance are basically too low. I don't think we have ever 
seen a housing market that has been as impacted as the one we have 
faced in recent years. Low-income renters and moderate-income renters 
in these particular areas are really impacted by the loan limits that 
we have placed on developers.
  We need to provide more housing stock, yet do it in a way that does 
not put taxpayers at risk. And that is what this does. The program 
makes money for the government, does not lose money for the government. 
I would absolutely support this amendment and ask all my colleagues to 
join us.
  I reserve the balance of my time.
  Mr. WEINER. I think my colleague states it very well, and I urge a 
``yes'' vote as well.
  I just want to point out, this is not a zero-sum game. There is 
nothing about the single-home market that is going to be impacted by 
this. There is nothing about the higher cost that is going to be 
impacted. This is just allowing this program to function in all 
quarters of the housing market and to take into accommodation the 
things that my colleague says, things like bigger buildings have very 
often higher costs.
  As I said, this has an outstanding delinquency rate of 0.3 percent. 
If every housing program and every housing guarantee program, despite 
the very difficult downturn, had such a small delinquency rate as this, 
then I think we would all be very happy with it. So increasing these 
limits I don't believe would have any deleterious effect.
  I urge a ``yes'' vote.
  I yield back the balance of my time.
  Mr. GARY G. MILLER of California. I agree with what my colleague 
said. When we passed this bill out last time, it had unanimous support. 
There is no impact on the Federal Government. We are taking areas that 
are high-cost, that have basically been discriminated against in the 
past from being able to participate in either a GSA loan or an FHA 
loan.
  This is a good amendment. I ask for an ``aye'' vote.

                              {time}  1230

  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from New York (Mr. Weiner).
  The amendment was agreed to.


                 Amendment No. 9 Offered by Mr. Turner

  The Acting CHAIR. It is now in order to consider amendment No. 9 
printed in House Report 111-503.
  Mr. TURNER. Mr. Chairman, I have an amendment at the desk, and I ask 
for its immediate consideration.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 9 offered by Mr. Turner:
       At the end of the bill, add the following new section:

     SEC. 16. FHA MAXIMUM LOAN LIMITS FOR 2010.

       Section 166 of the Continuing Appropriations Resolution, 
     2010 (as added by section 104 of Public Law 111-88; 123 Stat. 
     2972) is amended--
       (1) in subsection (a), by striking ``For'' and inserting 
     ``Except as provided in subsection (c), for'';
       (2) in subsection (b), by inserting ``the lesser of the 
     applicable amount under subsection (c) of this section or'' 
     after ``but in no case to an amount that exceeds'' ; and
       (3) by adding at the end the following new subsection:
       ``(c) Absolute Ceiling Limits.--Notwithstanding any other 
     provision of this section, the maximum dollar amount 
     limitation on the principal obligation of a mortgage 
     determined under this section for any area or subarea may not 
     exceed, in the case of a one-family residence, $500,000, and 
     in the case of a 2-, 3-, or 4-family residence, the 
     percentage of such amount that bears the same ratio to such 
     amount as the dollar amount limitation determined under the 
     sixth sentence of section 305(a)(2) of the Federal Home Loan 
     Mortgage Corporation Act for a 2-, 3-, or 4-family residence, 
     respectively, bears to the dollar amount limitation 
     determined under such section for a 1-family residence.''.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentleman 
from Ohio (Mr. Turner) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Ohio.
  Mr. TURNER. I yield myself such time as I may consume.
  Mr. Chairman, I rise today to offer an amendment that caps the 
temporary authority for the Federal Housing Administration to insure 
homes in high-cost areas at $500,000. The current temporary authority 
has the FHA insuring mortgages as high as $729,750.
  Only in Washington would a government program insure a mortgage on a 
home worth $750,000 for a low- and moderate-income program. Permitting 
FHA loans on a $750,000 home puts American taxpayers at additional 
risk. Allowing FHA-backed loans on these expensive homes contributes to 
the overinflated housing values that contributed to the foreclosure 
crisis from the beginning.
  The mortgage foreclosure crisis is not over, Mr. Chairman. There are 
still too many American families who are confronted every day with the 
risk

[[Page 10492]]

that they might lose their homes. Washington should not be in the role 
of enabling this crisis. We need to begin the process of reducing the 
dependence of these communities from artificial support, and we need to 
give the private sector the ability to step back into the market.
  The best place to facilitate this is to lower the FHA loan limit to 
homes under $500,000. The FHA has traditionally focused on low- to 
moderate-income families who are seeking to purchase homes--and for 
good reason--as these buyers need the greatest assistance in their home 
purchases. The FHA should, once again, focus their efforts on these 
buyers.
  Permitting FHA loans to purchase a $750,000 home also means fewer 
FHA-insured mortgages for Ohio families and for families across America 
who truly need them. In most of my congressional district in Ohio, the 
current FHA loan limit is $271,000, which is in line with the loan 
limit for most of the U.S. I understand that there are high-cost urban 
areas in our Nation where some homes cost more than in Ohio, but the 
FHA was designed to help low and moderate homebuyers, and it should 
focus on more moderately priced homes. Permitting FHA loans for these 
high-priced homes only limits access to true moderately priced FHA 
loans for American families who need them.
  My amendment seeks to start the process of removing higher income 
buyers off the government program designed for low to moderate buyers. 
The effect of this amendment is to limit it to the 179 counties in the 
country, but it does not reduce the assistance to the moderately priced 
homes that are the majority of the Nation.
  The FHA was intended to assist Americans in achieving the American 
dream of homeownership. We need to work to ensure that their focus 
continues to be on those who truly need the help. My amendment would 
work to that purpose, and I urge my colleagues to support it.
  Mr. Chairman, I reserve the balance of my time.
  Mr. SHERMAN. Mr. Chairman, I rise in opposition to the amendment.
  The Acting CHAIR. The gentleman from California is recognized for 5 
minutes.
  Mr. SHERMAN. I yield 1\1/2\ minutes to the gentleman from California 
(Mr. Gary G. Miller).
  Mr. GARY G. MILLER of California. I thank the gentleman for yielding.
  I am in strong opposition to this amendment. Over the years, I think 
in about 2001, I started arguing to raise conforming loan limits in 
high-cost areas, and it has had a tremendous benefit across this 
Nation, but it seems like everybody who comes with amendments to oppose 
that does so when it does not impact their districts.
  Now, my good friend Mr. Turner--and he is a good friend of mine--if 
you had introduced an amendment and had said to accept conforming as it 
should be, if you applied the old principles, it would be $417,000, but 
that would have had an impact on many counties in your State. So you 
introduced an amendment which said, well, let's pick an amount of 
$500,000, which means there is zero impact on the State of Ohio. So 
$500,000 is a great amount to pull out of the air when it doesn't 
impact you, personally.
  In L.A. County, the loan limits are $729,750. In Orange County, the 
limits are $729,750. These are some of the best-performing loans FHA is 
making. When you look at GSE and FHA nationwide, they are making over 
90 percent of the loans in this country. If they were not there today, 
people would not be able to sell loans in high-cost areas.
  The Acting CHAIR. The time of the gentleman has expired.
  Mr. SHERMAN. I yield the gentleman an additional 30 seconds.
  Mr. GARY G. MILLER of California. You would not be able to sell a 
home in a high-cost area, nor would you be able to buy a home in a 
high-cost area. Now, if this were in some way impacting the Federal 
Government or taxpayers, I would absolutely agree with my good friend.
  I will say again to my good friend, Mr. Turner, that I would agree 
with this, but this is not impacting taxpayers. It is not impacting 
FHA. It has some of the best-performing loans. Why should people who 
live in high-cost areas be basically penalized just because we want to 
pick a number of $500,000 out of the air, which will have no benefit to 
anybody anywhere?
  I absolutely think this is a wrong amendment. I oppose it, and I ask 
my colleagues to oppose this amendment.
  Mr. TURNER. Well, I appreciate my good friend Mr. Miller's statement.
  There is one that I do want to correct, though, which is that all of 
Ohio would be under his suggested limit of 415. We certainly could have 
picked a lower number. My community is at 271.
  The issue becomes one of, well, we're in a financial crisis, and 
we're having bailouts and mortgage foreclosures across the country. We 
look to this issue as one of basic math. The larger the loan amount, 
the more the risk. When there is fluctuation in the market, a 
percentage of a larger number is a larger loss, leading to, certainly, 
an issue of more increased incidences of a likelihood of foreclosure.
  Also, the issue of larger loan amounts means fewer loans which could 
be provided assistance. There is a limited amount here, and with that 
limited amount, if it is carved up into $750,000 home sales versus 
those that are going to more moderately priced homes, you certainly 
will have less resources with which to provide that assistance.
  This is basic math. When we look across the country during this 
mortgage foreclosure crisis, we have to be very concerned about how we 
ensure that we are assisting home buyers, low and moderate buyers. At 
the same time, we have to ensure we are not overly inflating the market 
and that we are not putting the taxpayers at greater risk.
  I reserve the balance of my time.
  Mr. SHERMAN. A quick inquiry: Do I have the right to close, or does 
the gentleman from Ohio have the right to close?
  The Acting CHAIR. The gentleman from California has the right to 
close.
  Mr. SHERMAN. I reserve the balance of my time.
  Mr. TURNER. Mr. Chairman, I urge all of my colleagues to support this 
measure, which makes good financial and fiscal sense. It would lower 
the amount, providing greater assistance because there would be a 
greater number of loans which could be provided assistance. At the same 
time, it would lower the risk to taxpayers, and it would lower the risk 
of bailouts by making these higher-cost areas, the more risky areas, 
conform to an amount that really would be more reflective of our goal 
of low and moderate home buyers who receive assistance from the FHA.
  I yield back the balance of my time.
  Mr. SHERMAN. I yield myself the remainder of the time.
  Mr. Chairman, I think the gentleman's definition of ``risk'' and his 
arithmetic are a bit faulty. To say that $1 billion of smaller loans 
carries less risk than $1 billion of larger loans is not something one 
can determine except by looking at the performance of those loans.
  As the gentleman from California (Mr. Gary G. Miller) pointed out, 
those larger loans perform better. The FHA, therefore, has less 
insurance risk and, actually, usually, makes a profit on those loans. 
So to say that loans in Los Angeles take away from loans in Ohio and 
expose the Federal Government to more risk than loans in Ohio is simply 
false.
  Mr. GARY G. MILLER of California. Will the gentleman yield?
  Mr. SHERMAN. I will yield to the gentleman from California.
  Mr. GARY G. MILLER of California. A question for you: there has been 
a perception created that somehow, by eliminating the high-cost areas, 
the FHA could insure more loans. Yet that is not real because the FHA 
can insure all of the loans they want irrespective of the volume of the 
loans. It does not have any impact on FHA's ability whatsoever. Am I 
correct on that?
  Mr. SHERMAN. The gentleman is correct. This is not an anti-Ohio 
stance that the two gentlemen from California are taking.
  The fact is there is this image that some have from other parts of 
the

[[Page 10493]]

country that, if a home sells for more than $500,000, the people in it 
must be rich. That is not how things work in the 122 counties that are 
affected by this amendment. In my area, if a police officer is married 
to a teacher, they're in a home of over $500,000. Now, that's very 
difficult for them to afford. That ends up tying up their retirement 
money for better or for worse, but that is how expensive it is to live 
in some parts of this country.
  To say that, because people are buying a home of over $500,000 that 
they are rich and do not deserve the same kind of help the gentleman 
from Ohio thinks middle class families in his district deserve, it is 
the same kind of help that middle class families in my district 
deserve.
  Now, this amendment is opposed by the Mortgage Bankers Association, 
by the National Association of Home Builders and by the National 
Association of Realtors, not just the California divisions of those 
entities but entities that represent the entire country. I don't think 
that the Ohio Realtors would be here supporting this amendment. I don't 
think the Nebraska Realtors would be. And I don't think the National 
Association of Realtors would be here opposing this amendment if the 
amendment were going to help major swaths of this country.
  The fact is that the FHA's current program helps California without 
hurting those other States. It helps the Washington area, the New York 
area, much of Virginia, et cetera. The worst thing we could do for this 
economy is to cause a precipitous decline in the price of homes in the 
major metropolitan areas of this country. Our recovery is fragile. The 
program, the way it works now, allows middle class families in both Los 
Angeles and in Ohio to be able to finance homes, and we ought to vote 
down this amendment.
  So please join with Chairman Frank, with Chairwoman Waters, with the 
National Association of Realtors, Home Builders, and Mortgage Bankers 
in urging a ``no'' vote.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Ohio (Mr. Turner).
  The question was taken; and the Acting Chair announced that the noes 
appeared to have it.
  Mr. TURNER. Mr. Chair, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Ohio will be 
postponed.


                 Amendment No. 10 Offered by Ms. Clarke

  The Acting CHAIR (Mr. Rahall). It is now in order to consider 
amendment No. 10 printed in House Report 111-503.
  Ms. CLARKE. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 10 offered by Ms. Clarke:
       Page 21, line 3, strike ``and''.
       Page 21, line 8, strike the period and insert ``; and''.
       Page 21, after line 8, insert the following:
       (E) analyzes the effectiveness of the loss mitigation home 
     retention options of the Department of Housing and Urban 
     Development in assisting individuals in avoiding home 
     foreclosure for mortgages on 1- to 4-family residences 
     insured under subsection (b) or (k) of section 203, section 
     234(c), or section 251 of the National Housing Act, 
     particularly for low-income individuals (as such term is 
     defined in section 103 of the Riegle Community Development 
     and Regulatory Improvement Act of 1994 (12 U.S.C. 4702)).

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentlewoman 
from New York (Ms. Clarke) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from New York.
  Ms. CLARKE. Mr. Chairman, I thank my colleagues, Chair Waters and 
Chairman Frank, for bringing this important bill to the floor today and 
for supporting my amendment, which is cosponsored by Representative 
Cuellar from Texas.
  Before I speak about my amendment, I want to quickly recognize the 
significance of H.R. 5072. This bill will make essential reforms to 
strengthen the financial footing of the FHA, and it will enhance its 
authority to go after fraudulent lenders who have preyed on the most 
vulnerable of borrowers for far too long.
  Mr. Chairman, many people have blamed this foreclosure crisis on the 
borrowers while some individuals, desperate to achieve the American 
Dream, may have sought to cut corners in the process. Fraudulent and 
unscrupulous lenders ultimately held the purse strings. These lenders 
bear a great deal of the burden for the foreclosure crisis, which 
continues to impact Americans and to devastate communities from coast 
to coast.
  Last year, New York City saw a record 20,000 foreclosure filings. 
According to data compiled by the Furman Center for Real Estate and 
Urban Policy at New York University, in the first quarter of 2010, 
there were 4,226 foreclosures across New York City, up 16.3 percent 
from 2008. Brooklyn alone experienced 1,546 foreclosures in the first 
quarter of 2010.
  Since the beginning of the FHA, Commissioner Stevens' tenure in 2009, 
the Commissioner and Deputy Assistant Secretary Bott have taken several 
steps to assess and to strengthen FHA's foreclosure mitigation 
capabilities, beginning with a thorough review of FHA and of private 
lender loss mitigation and foreclosure preventative activities. The FHA 
trained almost 2,000 staff lenders on how to better serve FHA borrowers 
to avoid foreclosure, to identify lenders which are underperforming and 
to share best practices to improve foreclosure mitigation performance.

                              {time}  1245

  FHA assisted more than 450,000 borrowers in the past year to avoid 
foreclosure through a variety of loss mitigation programs, but my 
constituents are telling me that more can be done to support the 
foreclosure counseling efforts. We must determine if enough resources 
are being devoted to foreclosure mitigation, especially for low-income 
borrowers. That is why I proposed this amendment, along with Mr. 
Cuellar, which would direct GAO to analyze the effectiveness of HUD's 
loss mitigation home retention efforts in helping distressed borrowers, 
especially low-income borrowers, hold on to their American Dream. While 
the FHA is working to strengthen its mitigation capabilities, resources 
for these efforts are likely insufficient for the massive size of the 
program.
  I'd like to thank Representative Cuellar for joining me in this 
effort. Low-income borrowers in rural areas such as Mr. Cuellar's 
district in Texas are facing the same challenges as those in distressed 
urban areas such as parts of my district in Brooklyn.
  I encourage my colleagues to support this amendment to assist our 
Nation to overcome our foreclosure crisis.
  Mr. Chairman, I reserve the balance of my time.
  Mrs. CAPITO. Mr. Chairman, I rise to claim the time in opposition, 
although I am not opposed to the amendment.
  The Acting CHAIR. Without objection, the gentlewoman from West 
Virginia is recognized for 5 minutes.
  There was no objection.
  Mrs. CAPITO. Mr. Chairman, just briefly, I would like to thank both 
the sponsors of the bill. Certainly the intent is for more information 
and certainly more accurate information to look at the programs that 
we're putting forth and that have been put forth to see if the loss 
mitigation efforts are working and in what ways we can improve them. So 
I congratulate you and I urge support of the amendment.
  I yield back the balance of my time.
  Ms. CLARKE. I want to thank my colleague on the other side of the 
aisle for seeing the usefulness in this amendment. I want to thank Mr. 
Cuellar for being a partner and for bringing this amendment forward.
  Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from New York (Ms. Clarke).
  The amendment was agreed to.


                  Amendment No. 11 Offered by Mr. Nye

  The Acting CHAIR. It is now in order to consider amendment No. 11 
printed in House Report 111-503.
  Mr. NYE. Mr. Chairman, I have an amendment at the desk.

[[Page 10494]]

  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 11 offered by Mr. Nye:
       At the end of the bill, add the following new section:

     SEC. 16. SPECIAL FORBEARANCE FOR MORTGAGORS WITH CHINESE 
                   DRYWALL.

       The provisions of Mortgagee Letter 2002-17 of the Secretary 
     of Housing and Urban Development (regarding ``Special 
     Forbearance: Program Changes and Updates'') relating to Type 
     I Special Forbearance shall apply, until the conclusion of 
     fiscal year 2011 and may not be revoked, annulled, repealed, 
     or rescinded during such period, with respect to mortgagees 
     of mortgages insured under title II of the National Housing 
     Act that are secured by one- to four-family dwellings that 
     have problem or damaging drywall products.

  The Acting CHAIR (Mr. Cuellar). Pursuant to House Resolution 1424, 
the gentleman from Virginia (Mr. Nye) and a Member opposed each will 
control 5 minutes.
  The Chair recognizes the gentleman from Virginia.
  Mr. NYE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I stand here today to continue the fight for my 
constituents in Hampton Roads, Virginia, and for thousands of families 
across the United States against a nefarious adversary, toxic Chinese 
drywall.
  Chinese drywall has serious health implications. The toxins released 
from the drywall reek of chemicals and rotten eggs. They corrode a 
home's electrical systems and can cause deep, hacking coughs, bloody 
noses, and eye irritation. However, the scariest fact is that we still 
do not know what long-term health effects Chinese drywall will have.
  Since January of last year, more than 3,300 cases have been reported 
from 37 States and the District of Columbia. Families have been left 
with an impossible choice: live in a contaminated home or pay tens if 
not hundreds of thousands of dollars to rip out and replace their 
home's drywall.
  In my district, I have visited these homes and I've spoken with the 
families. Many of them have been forced to move in with friends or 
relatives; many others are now living in rental housing, paying for 
both the cost of the mortgage and the cost of rent or, even worse, 
living in the home, unable to afford repairs. And still others have 
made the toughest decision: walking away from their homes. This is bad 
for our recovering housing market and bad for our economy, and it's bad 
for American families.
  Mr. Chairman, my commonsense amendment will extend the Federal 
Housing Administration's special forbearance program for American 
homeowners by providing forbearances for those who suffer from toxic 
Chinese drywall through fiscal year 2011. This reprieve has allowed 
countless families to get back on their feet and repair their homes.
  As cochairman of the Congressional Contaminated Drywall Caucus, I 
commend the Federal Housing Administration for working with Congress 
and American homeowners. Providing temporary forbearances for those who 
suffer from Chinese drywall through no fault of their own is something 
the Federal Government must continue to support. I hope my colleagues 
will join me in supporting this amendment.
  I reserve the balance of my time.
  Mrs. CAPITO. I rise to claim the time in opposition, although I'm not 
opposed to the gentleman's amendment.
  The Acting CHAIR. Without objection, the gentlewoman from West 
Virginia is recognized for 5 minutes.
  There was no objection.
  Mrs. CAPITO. As the Congressman has stated, his amendment merely 
ensures that HUD will take no action between now and the end of FY 2011 
to bar the Chinese drywall victims from eligibility from HUD's special 
mitigation and forbearance program. Since this does not create a new 
program or new spending, it just ensures an existing effort by HUD to 
extend aid to Chinese drywall victims remains in place through FY 2011, 
I commend the gentleman on his amendment, and I support the gentleman's 
amendment.
  I yield back the balance of my time.
  Mr. NYE. I thank my colleague from West Virginia for her support of 
the amendment. I urge all of my colleagues to support this amendment.
  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Virginia (Mr. Nye).
  The amendment was agreed to.


            Amendment No. 12 Offered by Mr. Edwards of Texas

  The Acting CHAIR. It is now in order to consider amendment No. 12 
printed in House Report 111-503.
  Mr. EDWARDS of Texas. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 12 offered by Mr. Edwards of Texas:
       At the end of the bill, add the following new section:

     SEC. 16. REQUIRED CERTIFICATIONS.

       Section 203 of the National Housing Act (12 U.S.C. 1709), 
     as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     subsection:
       ``(z) Required Certifications.--Notwithstanding any other 
     provision of law, the Secretary may not insure any mortgage 
     secured by a one- to four-family dwelling unless the 
     mortgagor under such mortgage certifies, under penalty of 
     perjury, that the mortgagor has not been convicted of a sex 
     offense against a minor (as such terms are defined in section 
     111 of the Sex Offender Registration and Notification Act (42 
     U.S.C. 16911)).''.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentleman 
from Texas (Mr. Edwards) and a Member opposed each will control 5 
minutes.
  The Chair now recognizes the gentleman from Texas.
  Mr. EDWARDS of Texas. Mr. Chairman, Members, my amendment is a 
simple, commonsense protection for children and families. It requires 
anyone seeking to benefit from the terms of an FHA mortgage to certify 
under penalty of perjury that they have not been convicted of a sex 
offense against a minor. This amendment ensures that taxpayers will not 
be on the hook for loans made to convicted child sex offenders.
  There are 704,000 registered sex offenders currently living in our 
communities, and experts estimate as many as 100,000 convicted sex 
offenders are lost in the system. Recent research has shown that there 
is a high repeat rate for sexual crimes, and even higher amongst those 
who commit these crimes against children. As a result, in the past 2 
years, Congress has passed a series of laws adopting the use of sex 
offender registries and community notification systems for sexually 
violent offenders and those committing offenses against children.
  While we cannot prevent registered child sex offenders from moving 
into our communities, we do not need to provide them the additional 
benefits offered by an FHA home loan if they try to do so. With an FHA 
home loan, taxpayers are liable if the loan defaults. I do not believe, 
I don't think most Members of this House believe, and I know most 
Americans do not believe that taxpayers should be on the hook for a 
home loan of someone who has committed a sex offense against a minor.
  A quarter of a million children are sexually assaulted every year in 
my home State of Texas, according to the National Crime Victims 
Research and Treatment report. There are still private market 
alternatives to FHA loans, and we want to continue to discourage any 
kind of federally financed reward or taxpayer-backed benefit to sex 
offenders reentering our communities. For example, sex offenders are 
already banned from residing in section 8 public housing. My amendment 
continues that pro-family stance.
  The certification requirement in this amendment is a strong 
enforcement mechanism which will not put additional burdens on small 
businesses.
  And so, Mr. Chairman, I urge support of my amendment to protect our 
communities and to prohibit those who have committed a sex offense 
against a minor from benefiting from government-backed FHA loans.
  I reserve the balance of my time.
  Mrs. CAPITO. I would like to claim time in opposition, although I am 
not

[[Page 10495]]

opposed to the gentleman's amendment.
  The Acting CHAIR. Without objection, the gentlewoman from West 
Virginia is recognized for 5 minutes.
  There was no objection.
  Mrs. CAPITO. The gentleman's amendment is similar to previous efforts 
by Republicans in past housing debates to ensure that convicted sex 
offenders are unable to receive the Federal aid to obtain housing 
through the FHA. I think the intent and the direction that the 
gentleman is going to absolutely appropriate. I support his amendment.
  I yield back the balance of my time.
  Mr. EDWARDS of Texas. I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Texas (Mr. Edwards).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. EDWARDS of Texas. Mr. Chair, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Texas will 
be postponed.


                 Amendment No. 13 Offered by Mr. Maffei

  The Acting CHAIR. It is now in order to consider amendment No. 13 
printed in House Report 111-503.
  Mr. MAFFEI. Mr. Chairman, I rise as the designee of Mr. Adler to 
offer an amendment on behalf of Mr. Adler and myself, and it is at the 
desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 13 offered by Mr. Maffei:
       At the end of the bill, add the following new section:

     SEC. 16. PROHIBITION ON USE OF FUNDS FOR CERTAIN FEDERAL 
                   EMPLOYEES.

       None of the funds authorized under this Act or any 
     amendment made by this Act may be used to pay the salary of 
     any individual engaged in activities related to title II of 
     the National Housing Act who has been officially disciplined 
     for violations of subpart G of the Standards of Ethical 
     Conduct for Employees of the Executive Branch for viewing, 
     downloading, or exchanging pornography, including child 
     pornography, on a Federal Government computer or while 
     performing official Federal Government duties.

  The Acting CHAIR. Pursuant to House Resolution 1424, the gentleman 
from New York (Mr. Maffei) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from New York.
  Mr. MAFFEI. Mr. Chairman, I want to thank Chairman Frank and 
Chairwoman Waters for bringing this bill and my amendment to the floor.
  We were all outraged when we learned that dozens of employees at the 
Securities and Exchange Commission were found to have been using their 
government-issued computers to view pornography. Some of these 
employees were senior staffers, earning as much as $222,000 a year. One 
SEC attorney in Washington, D.C., spent up to 8 hours a day watching 
pornography. An accountant in a regional office was denied access by 
the government firewall 16,000 times when he tried to access Web pages 
containing sexually explicit material.
  Mr. Chairman, this behavior, these abuses are not just an abuse of 
government resources but also of the public trust. It undermines 
confidence in our institutions. It subjects the thousands of SEC and 
other government employees who work hard every day to a diminishment, 
and, simply put, it is outrageous and unacceptable.
  This amendment is very simple. It simply says that if you are an FHA 
employee who is officially disciplined for viewing, downloading, or 
exchanging pornography, including child pornography, you lose your job. 
No private business in America would tolerate this kind of behavior, 
and there's no reason our government institutions should either.
  Again, very, very simple. If you're caught and officially disciplined 
for viewing, downloading, or exchanging pornography, you lose your job. 
It's that simple.
  This should not be a partisan issue, and I urge swift passage of this 
amendment.
  I reserve the balance of my time.
  Mrs. CAPITO. I rise to claim the time in opposition, although I am 
not opposed to the gentleman's amendment.
  The Acting CHAIR. Without objection, the gentlewoman from West 
Virginia is recognized for 5 minutes.
  There was no objection.
  Mrs. CAPITO. I would just reiterate that the Congressman's amendment 
seeks to ensure that the employees hired by FHA as a result of funds 
made available in this bill are in good standing and not guilty of 
viewing any previous pornography or any related disciplinary measures.
  As the gentleman said, I think all of us, and certainly throughout 
the country, were stunned to learn some of the statistics of certain 
government employees not only viewing inappropriate material, but the 
absolute, incredible waste of government resources and waste of time 
that these employees have engaged in.
  So, I think it's right and proper, as this amendment moves forward, 
to ensure that we protect against those abuses in the future. I support 
the gentleman's amendment.
  I yield back the balance of my time.

                              {time}  1300

  Mr. MAFFEI. Mr. Chairman, I want to thank the gentlewoman from West 
Virginia for her support of this amendment.
  I again want to reiterate that thousands and thousands of workers at 
the Securities and Exchange Commission and other government agencies 
are extraordinarily hardworking, would never engage in this kind of 
behavior. And, in fact, the reason why this amendment is so important 
is to protect their reputation for the important jobs they do.
  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from New York (Mr. Maffei).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. MAFFEI. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from New York 
will be postponed.


                    Announcement by the Acting Chair

  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, proceedings 
will now resume on those amendments printed in House Report 111-503 on 
which further proceedings were postponed, in the following order:
  Amendment No. 1 by Ms. Waters of California;
  Amendment No. 5 by Mr. Garrett of New Jersey;
  Amendment No. 7 by Mr. Price of Georgia;
  Amendment No. 9 by Mr. Turner of Ohio;
  Amendment No. 12 by Mr. Edwards of Texas;
  Amendment No. 13 by Mr. Maffei of New York.
  The Chair will reduce to 5 minutes the time for any electronic vote 
after the first vote in this series.


          Amendment No. 1 Offered by Ms. Waters of California

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentlewoman from 
California (Ms. Waters) on which further proceedings were postponed and 
on which the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 417, 
noes 3, not voting 17, as follows:

                             [Roll No. 347]

                               AYES--417

     Ackerman
     Aderholt
     Adler (NJ)
     Akin
     Alexander
     Altmire
     Andrews
     Arcuri
     Austria
     Baca
     Bachmann
     Bachus
     Baird
     Baldwin
     Barrow
     Bartlett
     Barton (TX)
     Bean
     Becerra
     Berkley
     Berman

[[Page 10496]]


     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blackburn
     Blumenauer
     Blunt
     Boccieri
     Boehner
     Bonner
     Bono Mack
     Boozman
     Bordallo
     Boren
     Boswell
     Boucher
     Boustany
     Boyd
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Bright
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Butterfield
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Carter
     Cassidy
     Castle
     Castor (FL)
     Chaffetz
     Chandler
     Childers
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Coffman (CO)
     Cohen
     Cole
     Conaway
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crenshaw
     Critz
     Crowley
     Cuellar
     Culberson
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (KY)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Deutch
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Djou
     Doggett
     Donnelly (IN)
     Doyle
     Dreier
     Driehaus
     Duncan
     Edwards (MD)
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Emerson
     Engel
     Etheridge
     Fallin
     Farr
     Fattah
     Filner
     Fleming
     Forbes
     Fortenberry
     Foster
     Foxx
     Frank (MA)
     Franks (AZ)
     Frelinghuysen
     Fudge
     Gallegly
     Garamendi
     Garrett (NJ)
     Gerlach
     Giffords
     Gingrey (GA)
     Gohmert
     Gonzalez
     Goodlatte
     Gordon (TN)
     Granger
     Graves
     Grayson
     Green, Al
     Green, Gene
     Griffith
     Grijalva
     Guthrie
     Gutierrez
     Hall (NY)
     Hall (TX)
     Halvorson
     Hare
     Harper
     Hastings (FL)
     Hastings (WA)
     Heinrich
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Hunter
     Inslee
     Israel
     Issa
     Jackson (IL)
     Jackson Lee (TX)
     Jenkins
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones
     Jordan (OH)
     Kagen
     Kanjorski
     Kaptur
     Kildee
     Kilroy
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kline (MN)
     Kosmas
     Kratovil
     Kucinich
     Lamborn
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Latta
     Lee (CA)
     Lee (NY)
     Levin
     Lewis (CA)
     Linder
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Luetkemeyer
     Lujan
     Lummis
     Lungren, Daniel E.
     Lynch
     Mack
     Maffei
     Maloney
     Manzullo
     Marchant
     Markey (CO)
     Markey (MA)
     Marshall
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCaul
     McClintock
     McCollum
     McCotter
     McDermott
     McGovern
     McIntyre
     McKeon
     McMahon
     McMorris Rodgers
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murphy, Tim
     Myrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Neugebauer
     Norton
     Nunes
     Nye
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Paulsen
     Payne
     Pence
     Perlmutter
     Perriello
     Peters
     Peterson
     Petri
     Pierluisi
     Pingree (ME)
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Pomeroy
     Posey
     Price (GA)
     Price (NC)
     Quigley
     Radanovich
     Rahall
     Rangel
     Rehberg
     Reichert
     Reyes
     Richardson
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Rothman (NJ)
     Roybal-Allard
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Scalise
     Schakowsky
     Schauer
     Schiff
     Schmidt
     Schock
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sessions
     Sestak
     Shadegg
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stearns
     Stupak
     Sullivan
     Sutton
     Tanner
     Taylor
     Teague
     Terry
     Thompson (CA)
     Thompson (MS)
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Turner
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walden
     Walz
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Westmoreland
     Whitfield
     Wilson (OH)
     Wilson (SC)
     Wittman
     Wolf
     Woolsey
     Wu
     Yarmuth
     Young (AK)
     Young (FL)

                                NOES--3

     Broun (GA)
     Flake
     Paul

                             NOT VOTING--17

     Barrett (SC)
     Davis (CA)
     Davis (IL)
     Eshoo
     Faleomavaega
     Harman
     Hinojosa
     Hoekstra
     Inglis
     Johnson (GA)
     Kennedy
     Kilpatrick (MI)
     Lewis (GA)
     McHenry
     Olson
     Putnam
     Shuster

                              {time}  1329

  Mr. MACK changed his vote from ``no'' to ``aye.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  (By unanimous consent, Mr. Pomeroy was allowed to speak out of 
order.)


                In Memory of Congressman Arthur A. Link

  Mr. POMEROY. Mr. Chairman, last week, former Congressman Arthur A. 
Link who served in the 92nd Congress passed away. One week earlier, he 
celebrated his 96th birthday and 71st wedding anniversary with his 
beloved wife, Grace.
  Mr. Link held elected office in North Dakota for 34 years, including 
the State legislature, in the Congress, and as Governor from 1973 to 
1980. Not bad for someone with an 8th grade education who farmed and 
ranched in the sparsely populated northwestern part of our State. Art 
Link's importance to North Dakota is significant not just for his time 
in public office but for his 30 years of exemplary activity he and 
Grace spent after Governor, remaining deeply engaged in North Dakota 
activities.
  He is remembered for his rock-solid values of integrity, decency, 
humility, and a deep sense that we are passing stewards of the land 
whose responsibility is to make certain things are in good shape for 
those who follow.
  His philosophy is beautifully expressed in a short but unforgettable 
speech, ``When the Land is Quiet Again,'' and I will add to the Record 
this speech. I commend it to each of you, for the words have timeless 
relevance and seem especially pertinent given the events of these days.

                    [Speech given October 11, 1973]

                   When the Landscape Is Quiet Again

                      (By Governor Arthur A. Link)

       We do not want to halt progress.
       We do not plan to be selfish and say ``North Dakota will 
     not share its energy resource.''
       No, we simply want to insure the most efficient and 
     environmentally sound method of utilizing our precious coal 
     and water resources for the benefit of the broadest number of 
     people possible.
       And when we are through with that and the landscape is 
     quiet again, when the draglines, the blasting rigs, the power 
     shovels and the huge gondolas cease to rip and roar!
       And when the last bulldozer has pushed the last spoil pile 
     into place, and the last patch of barren earth has been 
     seeded to grass or grain, let those who follow and repopulate 
     the land be able to say, our grandparents did their job well.
       The land is as good and, in some cases, better than before.
       Only if they can say this will we be worthy of the rich 
     heritage of our land and its resources.

  I loved Art Link and can honestly say to each of you, this Chamber 
has never seen a more genuine, committed, and thoroughly decent Member.
  Mr. Chairman, I ask the House to observe a moment of silence in honor 
of former Congressman and Governor Arthur A. Link.
  The Acting CHAIR. Members will rise for a moment of silence.


          Amendment No. 5 Offered by Mr. Garrett of New Jersey

  The Acting CHAIR. Without objection, 5-minute voting will continue.
  There was no objection.
  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from New Jersey 
(Mr. Garrett) on which further proceedings were postponed and on which 
the noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 131, 
noes 289, not voting 17, as follows:

                             [Roll No. 348]

                               AYES--131

     Akin
     Alexander
     Austria
     Bachmann
     Bachus
     Bartlett
     Barton (TX)
     Bilirakis
     Bishop (UT)

[[Page 10497]]


     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boustany
     Brady (TX)
     Broun (GA)
     Brown (SC)
     Burgess
     Burton (IN)
     Buyer
     Camp
     Campbell
     Cantor
     Carter
     Cassidy
     Chaffetz
     Coffman (CO)
     Cole
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doggett
     Dreier
     Duncan
     Emerson
     Fallin
     Flake
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Garrett (NJ)
     Gingrey (GA)
     Gohmert
     Goodlatte
     Granger
     Graves
     Griffith
     Hall (TX)
     Halvorson
     Harper
     Hastings (WA)
     Hensarling
     Herger
     Hunter
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     Kagen
     King (NY)
     Kingston
     Kirk
     Lamborn
     Latta
     Linder
     Lucas
     Luetkemeyer
     Lummis
     Mack
     Manzullo
     McCaul
     McClintock
     McMorris Rodgers
     Mica
     Miller (FL)
     Minnick
     Mitchell
     Moran (KS)
     Myrick
     Neugebauer
     Nunes
     Olson
     Paul
     Pence
     Petri
     Pitts
     Platts
     Poe (TX)
     Price (GA)
     Roe (TN)
     Rogers (AL)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Schrader
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Smith (NE)
     Smith (TX)
     Smith (WA)
     Stearns
     Sullivan
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Upton
     Walden
     Wamp
     Westmoreland
     Whitfield
     Wilson (SC)
     Wolf

                               NOES--289

     Ackerman
     Aderholt
     Adler (NJ)
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bishop (GA)
     Bishop (NY)
     Boccieri
     Bordallo
     Boren
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Bright
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Calvert
     Cao
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Castle
     Castor (FL)
     Chandler
     Childers
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Cohen
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Critz
     Crowley
     Cuellar
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutch
     Dicks
     Dingell
     Djou
     Donnelly (IN)
     Doyle
     Driehaus
     Edwards (MD)
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Engel
     Etheridge
     Farr
     Fattah
     Filner
     Fleming
     Foster
     Frank (MA)
     Frelinghuysen
     Fudge
     Gallegly
     Garamendi
     Gerlach
     Giffords
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Guthrie
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Heller
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilroy
     Kind
     King (IA)
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kline (MN)
     Kosmas
     Kratovil
     Kucinich
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Lee (CA)
     Lee (NY)
     Levin
     Lewis (CA)
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lujan
     Lungren, Daniel E.
     Lynch
     Maffei
     Maloney
     Marchant
     Markey (CO)
     Markey (MA)
     Marshall
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCollum
     McCotter
     McDermott
     McIntyre
     McKeon
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murphy, Tim
     Nadler (NY)
     Napolitano
     Neal (MA)
     Norton
     Nye
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Paulsen
     Payne
     Perlmutter
     Perriello
     Peters
     Peterson
     Pierluisi
     Pingree (ME)
     Polis (CO)
     Pomeroy
     Posey
     Price (NC)
     Quigley
     Rahall
     Rangel
     Rehberg
     Reichert
     Reyes
     Richardson
     Rodriguez
     Rogers (KY)
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Snyder
     Space
     Speier
     Stark
     Stupak
     Sutton
     Tanner
     Taylor
     Teague
     Terry
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Turner
     Van Hollen
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wilson (OH)
     Wittman
     Woolsey
     Wu
     Yarmuth
     Young (AK)
     Young (FL)

                             NOT VOTING--17

     Barrett (SC)
     Blumenauer
     Butterfield
     Davis (CA)
     Davis (IL)
     Eshoo
     Faleomavaega
     Hinojosa
     Hoekstra
     Inglis
     Kilpatrick (MI)
     McGovern
     McHenry
     Putnam
     Radanovich
     Shuster
     Spratt


                    Announcement by the Acting Chair

  The Acting CHAIR (during the vote). There are 2 minutes remaining on 
this vote.

                              {time}  1340

  Messrs. DELAHUNT and MORAN of Virginia changed their vote from 
``aye'' to ``no.''
  Messrs. FORBES and ROHRABACHER changed their vote from ``no'' to 
``aye.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.
  (By unanimous consent, Mr. Wilson of South Carolina was allowed to 
speak out of order.)


                   In Honor of Rev. Eddie Lee Carter

  Mr. WILSON of South Carolina. Today, I rise to recognize Rev. Eddie 
Lee Carter on the occasion of his retirement from serving here in the 
House where since 2004 Rev. Carter has been repairing and shining 
shoes.
  Rev. Eddie Lee Carter and I have a shared heritage. He was born at 
Beech Island, South Carolina, and my grandfather was born at Beech 
Island, in Aiken County, South Carolina. At a very young age, his 
family moved to Augusta, Georgia, which was nearby, and he attended 
elementary school with the world-famous musician James Brown, another 
great South Carolinian.
  Rev. Carter first began to work on shoes as a young man, even before 
he joined the Army in 1953. Rev. Carter was stationed primarily in 
Germany while serving in the Army. A musician himself, he was renowned 
for singing and entertaining generals when they passed through the 
post. In 1955, Rev. Carter left the Army with the rank of corporal and 
later moved to Washington from Augusta to work at Stern Shoe Repair.
  In 1992, he was ordained a Methodist minister. On June 7, 2004, Rev. 
Carter came to work at the U.S. Capitol repairing and shining shoes. He 
currently lives at Fort Washington, Maryland, with his wife, Molly 
Anthony Carter. They have been married for 28 years. He has a son, and 
Mrs. Carter has two sons. On Friday, he plans to retire to spend more 
time with the congregation.
  Personally, I will always remember Rev. Carter's cheerfulness and 
encouragement, his quiet reading of the Bible, and his proud wearing of 
U.S.-South Carolina flag pin.
  Godspeed, Rev. Carter.


            Amendment No. 7 Offered by Mr. Price of Georgia

  The Acting CHAIR. Without objection, 5-minute voting will continue.
  There was no objection.
  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Georgia 
(Mr. Price) on which further proceedings were postponed and on which 
the noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 106, 
noes 316, not voting 15, as follows:

                             [Roll No. 349]

                               AYES--106

     Akin
     Alexander
     Austria
     Bachmann
     Bachus
     Bartlett
     Barton (TX)
     Bilirakis
     Bishop (UT)
     Blackburn
     Boehner
     Bonner
     Boustany
     Brady (TX)
     Broun (GA)
     Burgess
     Burton (IN)
     Buyer
     Camp
     Cantor
     Capito
     Carter
     Cassidy
     Castle
     Chaffetz
     Coffman (CO)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dreier
     Emerson
     Flake
     Fleming
     Fortenberry
     Foxx
     Franks (AZ)
     Garrett (NJ)
     Gingrey (GA)
     Gohmert
     Granger
     Graves
     Griffith
     Hall (TX)
     Harper
     Hastings (WA)
     Hensarling
     Herger
     Issa

[[Page 10498]]


     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     King (IA)
     Kingston
     Lamborn
     Latta
     Linder
     Luetkemeyer
     Lummis
     Mack
     Marchant
     McCaul
     McClintock
     McMorris Rodgers
     Miller (FL)
     Moran (KS)
     Murphy, Tim
     Myrick
     Neugebauer
     Nunes
     Olson
     Paul
     Pence
     Petri
     Pitts
     Poe (TX)
     Price (GA)
     Rangel
     Roe (TN)
     Rogers (AL)
     Rogers (MI)
     Rooney
     Ros-Lehtinen
     Royce
     Ryan (WI)
     Scalise
     Schock
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Smith (NE)
     Smith (TX)
     Stearns
     Thompson (PA)
     Thornberry
     Tiahrt
     Upton
     Westmoreland
     Whitfield
     Wilson (SC)
     Young (AK)

                               NOES--316

     Ackerman
     Aderholt
     Adler (NJ)
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Blunt
     Boccieri
     Bono Mack
     Boozman
     Bordallo
     Boren
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Bright
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Butterfield
     Calvert
     Campbell
     Cao
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Castor (FL)
     Chandler
     Childers
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Cohen
     Cole
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Critz
     Crowley
     Cuellar
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Deutch
     Dicks
     Dingell
     Djou
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Duncan
     Edwards (MD)
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Engel
     Etheridge
     Fallin
     Farr
     Fattah
     Filner
     Forbes
     Foster
     Frank (MA)
     Frelinghuysen
     Fudge
     Gallegly
     Gerlach
     Giffords
     Gonzalez
     Goodlatte
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Guthrie
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Heller
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Hunter
     Inslee
     Israel
     Jackson (IL)
     Jackson Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilroy
     Kind
     King (NY)
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kline (MN)
     Kosmas
     Kratovil
     Kucinich
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Lee (CA)
     Lee (NY)
     Levin
     Lewis (CA)
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Lujan
     Lungren, Daniel E.
     Lynch
     Maffei
     Maloney
     Markey (CO)
     Markey (MA)
     Marshall
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCollum
     McCotter
     McDermott
     McGovern
     McIntyre
     McKeon
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Norton
     Nye
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Paulsen
     Payne
     Perlmutter
     Perriello
     Peters
     Peterson
     Pierluisi
     Pingree (ME)
     Platts
     Polis (CO)
     Pomeroy
     Posey
     Price (NC)
     Quigley
     Radanovich
     Rahall
     Rehberg
     Reichert
     Reyes
     Richardson
     Rodriguez
     Rogers (KY)
     Rohrabacher
     Roskam
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schmidt
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stupak
     Sullivan
     Sutton
     Tanner
     Taylor
     Teague
     Terry
     Thompson (CA)
     Thompson (MS)
     Tiberi
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Turner
     Van Hollen
     Velazquez
     Visclosky
     Walden
     Walz
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wilson (OH)
     Wittman
     Wolf
     Woolsey
     Wu
     Yarmuth
     Young (FL)

                             NOT VOTING--15

     Barrett (SC)
     Davis (CA)
     Davis (IL)
     Eshoo
     Faleomavaega
     Garamendi
     Gordon (TN)
     Hinojosa
     Hoekstra
     Inglis
     Kilpatrick (MI)
     Manzullo
     McHenry
     Putnam
     Shuster

                              {time}  1350

  So the amendment was rejected.
  The result of the vote was announced as above recorded.
  Stated against:
  Mr. MANZULLO. Madam Speaker, on Thursday, June 10, 2010, I 
inadvertently missed this vote. I would have recorded a ``no'' vote on 
rollcall No. 349.


                 Amendment No. 9 Offered by Mr. Turner

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Ohio (Mr. 
Turner) on which further proceedings were postponed and on which the 
noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 121, 
noes 301, not voting 15, as follows:

                             [Roll No. 350]

                               AYES--121

     Alexander
     Austria
     Bachmann
     Bachus
     Bartlett
     Barton (TX)
     Bilirakis
     Bishop (UT)
     Blackburn
     Boehner
     Bonner
     Boustany
     Broun (GA)
     Brown (SC)
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Camp
     Cantor
     Capito
     Carter
     Cassidy
     Castle
     Chaffetz
     Coble
     Coffman (CO)
     Conaway
     Crenshaw
     Davis (KY)
     Davis (TN)
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doggett
     Duncan
     Emerson
     Flake
     Fleming
     Fortenberry
     Foxx
     Franks (AZ)
     Garrett (NJ)
     Gingrey (GA)
     Goodlatte
     Granger
     Graves
     Griffith
     Harper
     Hastings (WA)
     Hensarling
     Herger
     Herseth Sandlin
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     King (IA)
     Kingston
     Kirkpatrick (AZ)
     Kissell
     Kline (MN)
     Lamborn
     LaTourette
     Latta
     Linder
     Loebsack
     Luetkemeyer
     Mack
     Marchant
     Marshall
     McCaul
     McClintock
     McCotter
     McMorris Rodgers
     Melancon
     Miller (FL)
     Minnick
     Moran (KS)
     Murphy, Tim
     Myrick
     Neugebauer
     Olson
     Paul
     Paulsen
     Pence
     Perriello
     Petri
     Pitts
     Poe (TX)
     Posey
     Price (GA)
     Rehberg
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rooney
     Roskam
     Royce
     Ryan (WI)
     Scalise
     Schock
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Smith (NE)
     Smith (TX)
     Stearns
     Sullivan
     Sutton
     Teague
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Wamp
     Wilson (SC)
     Young (AK)

                               NOES--301

     Ackerman
     Aderholt
     Adler (NJ)
     Akin
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Blunt
     Boccieri
     Bono Mack
     Boozman
     Bordallo
     Boren
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Bright
     Brown, Corrine
     Brown-Waite, Ginny
     Butterfield
     Calvert
     Campbell
     Cao
     Capps
     Capuano
     Cardoza
     Carney
     Carson (IN)
     Castor (FL)
     Chandler
     Childers
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Cole
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Critz
     Crowley
     Cuellar
     Culberson
     Cummings
     Dahlkemper
     Davis (AL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Deutch
     Dicks
     Dingell
     Djou
     Donnelly (IN)
     Doyle
     Dreier
     Driehaus
     Edwards (MD)
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Engel
     Etheridge
     Faleomavaega
     Fallin
     Farr
     Fattah
     Filner
     Forbes
     Foster
     Frank (MA)
     Frelinghuysen
     Fudge
     Gallegly
     Gerlach
     Giffords
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Guthrie
     Gutierrez
     Hall (NY)
     Hall (TX)
     Halvorson
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Heller
     Higgins
     Hill
     Himes
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Hunter
     Inslee
     Israel
     Issa
     Jackson (IL)
     Jackson Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilroy
     Kind
     King (NY)
     Kirk
     Klein (FL)
     Kosmas
     Kratovil
     Kucinich
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     Lee (CA)
     Lee (NY)
     Levin
     Lewis (CA)
     Lewis (GA)
     Lipinski
     LoBiondo
     Lofgren, Zoe
     Lowey
     Lucas
     Lujan
     Lummis
     Lungren, Daniel E.
     Lynch
     Maffei
     Maloney
     Manzullo
     Markey (CO)
     Markey (MA)
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McKeon
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Mica
     Michaud
     Miller (MI)

[[Page 10499]]


     Miller (NC)
     Miller, Gary
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Norton
     Nunes
     Nye
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Perlmutter
     Peters
     Peterson
     Pierluisi
     Pingree (ME)
     Platts
     Polis (CO)
     Pomeroy
     Price (NC)
     Quigley
     Radanovich
     Rahall
     Rangel
     Reichert
     Reyes
     Richardson
     Rodriguez
     Roe (TN)
     Rohrabacher
     Ros-Lehtinen
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schmidt
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stupak
     Tanner
     Taylor
     Thompson (CA)
     Thompson (MS)
     Thompson (PA)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Van Hollen
     Velazquez
     Visclosky
     Walden
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Westmoreland
     Whitfield
     Wilson (OH)
     Wittman
     Wolf
     Woolsey
     Wu
     Yarmuth
     Young (FL)

                             NOT VOTING--15

     Barrett (SC)
     Carnahan
     Davis (CA)
     Davis (IL)
     Eshoo
     Garamendi
     Gohmert
     Hinojosa
     Hoekstra
     Inglis
     Kilpatrick (MI)
     McHenry
     Putnam
     Schrader
     Shuster


                    Announcement by the Acting Chair

  The Acting CHAIR (during the vote). There are 2 minutes remaining in 
this vote.

                              {time}  1357

  Mr. HOYER changed his vote from ``aye'' to ``no.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.


            Amendment No. 12 Offered by Mr. Edwards of Texas

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Texas (Mr. 
Edwards) on which further proceedings were postponed and on which the 
ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 420, 
noes 4, not voting 13, as follows:

                             [Roll No. 351]

                               AYES--420

     Ackerman
     Aderholt
     Adler (NJ)
     Akin
     Alexander
     Altmire
     Andrews
     Arcuri
     Austria
     Baca
     Bachmann
     Bachus
     Baird
     Baldwin
     Barrow
     Bartlett
     Barton (TX)
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blackburn
     Blumenauer
     Blunt
     Boccieri
     Boehner
     Bonner
     Bono Mack
     Boozman
     Bordallo
     Boren
     Boswell
     Boucher
     Boustany
     Boyd
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Bright
     Broun (GA)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Butterfield
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Carter
     Cassidy
     Castle
     Castor (FL)
     Chaffetz
     Chandler
     Childers
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Coffman (CO)
     Cohen
     Cole
     Conaway
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crenshaw
     Critz
     Crowley
     Cuellar
     Culberson
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (KY)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Deutch
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Djou
     Doggett
     Donnelly (IN)
     Doyle
     Dreier
     Driehaus
     Duncan
     Edwards (MD)
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Emerson
     Engel
     Etheridge
     Faleomavaega
     Fallin
     Farr
     Fattah
     Flake
     Fleming
     Forbes
     Fortenberry
     Foster
     Foxx
     Frank (MA)
     Franks (AZ)
     Frelinghuysen
     Fudge
     Gallegly
     Garamendi
     Garrett (NJ)
     Gerlach
     Giffords
     Gingrey (GA)
     Gohmert
     Gonzalez
     Goodlatte
     Gordon (TN)
     Granger
     Graves
     Grayson
     Green, Al
     Green, Gene
     Griffith
     Grijalva
     Guthrie
     Gutierrez
     Hall (NY)
     Hall (TX)
     Halvorson
     Hare
     Harman
     Harper
     Hastings (FL)
     Hastings (WA)
     Heinrich
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Hunter
     Inslee
     Israel
     Issa
     Jackson (IL)
     Jackson Lee (TX)
     Jenkins
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones
     Jordan (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilroy
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kline (MN)
     Kosmas
     Kratovil
     Kucinich
     Lamborn
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Latta
     Lee (CA)
     Lee (NY)
     Levin
     Lewis (CA)
     Lewis (GA)
     Linder
     Lipinski
     LoBiondo
     Loebsack
     Lowey
     Lucas
     Luetkemeyer
     Lujan
     Lummis
     Lungren, Daniel E.
     Lynch
     Mack
     Maffei
     Maloney
     Manzullo
     Marchant
     Markey (CO)
     Markey (MA)
     Marshall
     Matheson
     Matsui
     McCarthy (CA)
     McCaul
     McClintock
     McCollum
     McCotter
     McDermott
     McGovern
     McIntyre
     McKeon
     McMahon
     McMorris Rodgers
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murphy, Tim
     Myrick
     Napolitano
     Neal (MA)
     Neugebauer
     Norton
     Nunes
     Nye
     Oberstar
     Obey
     Olson
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Paulsen
     Payne
     Pence
     Perlmutter
     Perriello
     Peters
     Peterson
     Petri
     Pierluisi
     Pingree (ME)
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Pomeroy
     Posey
     Price (GA)
     Price (NC)
     Quigley
     Radanovich
     Rahall
     Rangel
     Rehberg
     Reichert
     Reyes
     Richardson
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Rothman (NJ)
     Roybal-Allard
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Scalise
     Schakowsky
     Schauer
     Schiff
     Schmidt
     Schock
     Schrader
     Schwartz
     Scott (GA)
     Sensenbrenner
     Serrano
     Sessions
     Sestak
     Shadegg
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stearns
     Stupak
     Sullivan
     Sutton
     Tanner
     Taylor
     Teague
     Terry
     Thompson (CA)
     Thompson (MS)
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Turner
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walden
     Walz
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Westmoreland
     Whitfield
     Wilson (OH)
     Wilson (SC)
     Wittman
     Wolf
     Woolsey
     Wu
     Yarmuth
     Young (AK)
     Young (FL)

                                NOES--4

     Filner
     Nadler (NY)
     Paul
     Scott (VA)

                             NOT VOTING--13

     Barrett (SC)
     Davis (CA)
     Davis (IL)
     Eshoo
     Hinojosa
     Hoekstra
     Inglis
     Kilpatrick (MI)
     Lofgren, Zoe
     McCarthy (NY)
     McHenry
     Putnam
     Shuster


                    Announcement by the Acting Chair

  The Acting CHAIR (during the vote). There are 2 minutes remaining on 
this vote.

                              {time}  1404

  So the amendment was agreed to.
  The result of the vote was announced as above recorded.


                 Amendment No. 13 Offered by Mr. Maffei

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from New York 
(Mr. Maffei) on which further proceedings were postponed and on which 
the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 416, 
noes 0, answered ``present'' 1, not voting 20, as follows:

[[Page 10500]]



                             [Roll No. 352]

                               AYES--416

     Ackerman
     Aderholt
     Adler (NJ)
     Akin
     Alexander
     Altmire
     Andrews
     Arcuri
     Austria
     Baca
     Bachmann
     Bachus
     Baird
     Baldwin
     Barrow
     Bartlett
     Barton (TX)
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blackburn
     Blumenauer
     Blunt
     Boccieri
     Boehner
     Bonner
     Bono Mack
     Boozman
     Bordallo
     Boren
     Boswell
     Boucher
     Boustany
     Boyd
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Bright
     Broun (GA)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Butterfield
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Carter
     Cassidy
     Castle
     Castor (FL)
     Chaffetz
     Chandler
     Childers
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Coffman (CO)
     Cohen
     Cole
     Conaway
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crenshaw
     Critz
     Crowley
     Cuellar
     Culberson
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (KY)
     Davis (TN)
     DeFazio
     DeGette
     DeLauro
     Dent
     Deutch
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Djou
     Doggett
     Donnelly (IN)
     Doyle
     Dreier
     Driehaus
     Duncan
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Emerson
     Engel
     Etheridge
     Faleomavaega
     Fallin
     Farr
     Fattah
     Filner
     Flake
     Fleming
     Forbes
     Fortenberry
     Foster
     Foxx
     Frank (MA)
     Franks (AZ)
     Frelinghuysen
     Fudge
     Gallegly
     Garamendi
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Gohmert
     Gonzalez
     Goodlatte
     Granger
     Graves
     Grayson
     Green, Al
     Green, Gene
     Griffith
     Grijalva
     Guthrie
     Hall (NY)
     Hall (TX)
     Halvorson
     Hare
     Harman
     Harper
     Hastings (FL)
     Hastings (WA)
     Heinrich
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Hunter
     Inslee
     Israel
     Issa
     Jackson (IL)
     Jackson Lee (TX)
     Jenkins
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones
     Jordan (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilroy
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kline (MN)
     Kosmas
     Kratovil
     Kucinich
     Lamborn
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Latta
     Lee (CA)
     Lee (NY)
     Levin
     Lewis (CA)
     Lewis (GA)
     Linder
     Lipinski
     LoBiondo
     Loebsack
     Lowey
     Lucas
     Luetkemeyer
     Lujan
     Lummis
     Lungren, Daniel E.
     Lynch
     Mack
     Maffei
     Maloney
     Manzullo
     Marchant
     Markey (CO)
     Markey (MA)
     Marshall
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCaul
     McClintock
     McCollum
     McCotter
     McDermott
     McGovern
     McIntyre
     McKeon
     McMahon
     McMorris Rodgers
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murphy, Tim
     Myrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Neugebauer
     Norton
     Nunes
     Nye
     Oberstar
     Obey
     Olson
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Paul
     Paulsen
     Payne
     Pence
     Perlmutter
     Perriello
     Peters
     Peterson
     Petri
     Pierluisi
     Pingree (ME)
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Pomeroy
     Posey
     Price (GA)
     Price (NC)
     Quigley
     Radanovich
     Rahall
     Rangel
     Rehberg
     Reichert
     Reyes
     Richardson
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Rothman (NJ)
     Roybal-Allard
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Scalise
     Schakowsky
     Schauer
     Schiff
     Schmidt
     Schock
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sestak
     Shadegg
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NE)
     Smith (NJ)
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stearns
     Stupak
     Sullivan
     Sutton
     Tanner
     Taylor
     Teague
     Terry
     Thompson (CA)
     Thompson (MS)
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Turner
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walden
     Walz
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Westmoreland
     Whitfield
     Wilson (OH)
     Wilson (SC)
     Wittman
     Wolf
     Woolsey
     Yarmuth
     Young (AK)
     Young (FL)

                        ANSWERED ``PRESENT''--1

       
     Edwards (MD)
       

                             NOT VOTING--20

     Barrett (SC)
     Davis (CA)
     Davis (IL)
     Delahunt
     Eshoo
     Giffords
     Gordon (TN)
     Gutierrez
     Hinojosa
     Hoekstra
     Inglis
     Kilpatrick (MI)
     Lofgren, Zoe
     McHenry
     Putnam
     Sessions
     Shuster
     Smith (TX)
     Stark
     Wu


                    Announcement by the Acting Chair

  The Acting CHAIR (during the vote). There are 2 minutes remaining on 
this vote.

                              {time}  1410

  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  The Acting CHAIR. The question is on the committee amendment in the 
nature of a substitute, as amended.
  The amendment was agreed to.
  The Acting CHAIR. Under the rule, the Committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Weiner) having assumed the chair, Mr. Cuellar, Acting Chair of the 
Committee of the Whole House on the state of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 5072) to 
improve the financial safety and soundness of the FHA mortgage 
insurance program, pursuant to House Resolution 1424, reported the bill 
back to the House with an amendment adopted in the Committee of the 
Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  The question is on the committee amendment in the nature of a 
substitute, as amended.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


                           Motion to Recommit

  Mr. LEE of New York. Mr. Speaker, I have a motion to recommit at the 
desk.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill?
  Mr. LEE of New York. In its current form.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Lee of New York moves to recommit the bill, H.R. 5072, 
     to the Committee on Financial Services with instructions to 
     report the same back to the House forthwith with the 
     following amendment:
       At the end of the bill, add the following new sections:

     SEC. 16. PROHIBITION OF MORTGAGE INSURANCE FOR BORROWERS WITH 
                   STRATEGIC DEFAULTS.

       Section 203 of the National Housing Act (12 U.S.C. 1709), 
     as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     subsection:
       ``(z) Prohibition of Mortgage Insurance for Borrowers With 
     Strategic Defaults.--
       ``(1) Prohibition.--The Secretary may not newly insure any 
     mortgage under this title that is secured by a 1- to 4-family 
     dwelling unless the mortgagee has determined, in accordance 
     with such standards and requirements established by the 
     Secretary, that the mortgagor under such mortgage has not 
     previously engaged in any strategic default with respect to 
     any residential mortgage loan.
       ``(2) Strategic default.--For purposes of this subsection, 
     the term `strategic default' means, with respect to a 
     residential mortgage loan, an intentional default having such 
     characteristics or under such circumstances as the Secretary 
     shall, by regulation, provide.''.

     SEC. 17. PROHIBITION ON TAXPAYER BAILOUT OF FHA PROGRAM.

       Section 205 of the National Housing Act (12 U.S.C. 1711), 
     as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     subsection:
       ``(h) Taxpayer Protection.--The Secretary shall use all 
     available actions and methods authorized under law to ensure 
     compliance with subsection (f)(2) and to protect the 
     taxpayers of the United States from financial responsibility 
     for any obligations of the Fund, including authority to 
     increase insurance premiums charged under this title for 
     mortgages that are obligations of the Fund, authority to 
     establish more stringent underwriting standards for such 
     mortgages, and authority to increase the amount of cash

[[Page 10501]]

     or its equivalent required to be paid on account of the 
     property subject to such a mortgage.''.

  Mr. LEE of New York (during the reading). Mr. Speaker, I ask 
unanimous consent to dispense with the reading.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  Ms. WATERS. I object.
  The SPEAKER pro tempore. Objection is heard.
  The Clerk will continue to read.
  The Clerk continued to read.

                              {time}  1415

  The SPEAKER pro tempore. The gentleman from New York is recognized 
for 5 minutes.
  Mr. LEE of New York. Mr. Speaker, the underlying bill that we have 
been considering today is an important one, and I support the 
provisions that are included in H.R. 5072, the FHA Reform Act of 2010. 
It gives HUD new tools that will allow the FHA to protect taxpayers 
against fraudulent or poorly underwritten and insured loans.
  The goal of H.R. 5072 is for HUD to begin the process of putting FHA 
back on the road to a program that has adequate capital in reserve to 
weather whatever problems it encounters down the road. However, H.R. 
5072 is not a cure-all. We can do more to ensure that American 
taxpayers are better protected.
  During the past 2 years, FHA's market share has significantly 
increased from less than 5 percent to more than 30 percent. As FHA's 
market share has increased, taxpayer exposure has continued to grow day 
by day. That is why we must do everything we can to ensure that the 
program is being run in a safe and sound manner and that the taxpayers 
will not be asked to pay for yet another government bailout.
  The motion does two important things. First, it prohibits the FHA 
from insuring loans from borrowers who have strategically defaulted on 
previous loans. Second, it prohibits a taxpayer bailout of the FHA 
program.
  According to a study by Experian and management consulting firm 
Oliver Wyman, from 2007 to 2008, the number of strategic defaults more 
than doubled to 588,000, and a separate 2009 survey found that more 
than a quarter of all existing defaults were strategic.
  Meanwhile, there are lawyers, scam artists and opportunists touting 
the financial benefits of walking away from a mortgage and offering to 
help you do that for a fee. Not a day goes by that we don't read 
another news article about folks who are making calculated decisions to 
stop paying their mortgages even though they still have the ability to 
pay. We are not talking about those families who have fallen on hard 
times or who simply can no longer afford to make their payments. We are 
talking about this new trend of people who voluntarily choose to stop 
paying their mortgages even though they still have the ability to pay.
  While these decisions should ultimately be left to the individual, we 
should put in place more stringent penalties to discourage this 
irresponsible behavior. If borrowers make decisions to strategically 
default on their loans, they certainly should not be allowed to benefit 
from a government-subsidized program.
  This motion makes it clear: if you can afford to pay your mortgage 
and choose not to, you will no longer be eligible to secure an FHA 
mortgage. This motion calls on the Secretary of HUD to define strategic 
default and to work with lenders to identify and to prevent borrowers 
from participating in the FHA program.
  This motion also prohibits a taxpayer bailout of the FHA program by 
requiring HUD to use all available methods at its disposal to ensure 
that the program is properly capitalized and that the taxpayer is 
protected, ensuring that mortgage applicants have truly enough skin in 
the game.
  As Ranking Member Bachus said in yesterday's motion to instruct 
conferees on the financial regulatory reform conference, it is time to 
end bailouts once and for all. Whether it is $145 billion for Fannie 
and Freddie or another $60 billion for AIG, Chrysler and GM, the 
American public has suffered enough from bailout fatigue.
  This motion to recommit ensures that the FHA uses its existing 
authorities to ensure that the program does not need an appropriation 
and that taxpayers are protected.
  While the underlying legislation makes significant improvements to 
the FHA program and goes a long way to providing HUD with the tools it 
will need to improve the financial condition of the FHA program, these 
additional prohibitions on strategic default borrowers and on taxpayer 
bailouts will ensure that the FHA program stays on a solid financial 
path and that American taxpayers will be protected from yet another 
bailout.
  I urge the adoption of this motion, and I yield back the balance of 
my time.
  Mr. FRANK of Massachusetts. I rise to speak on the motion.
  The SPEAKER pro tempore. Is the gentleman opposed to the motion?
  Mr. FRANK of Massachusetts. I don't know yet.
  The SPEAKER pro tempore. Without objection, the gentleman from 
Massachusetts is recognized for 5 minutes.
  There was no objection.
  Mr. FRANK of Massachusetts. Well, I was disappointed that my 
colleague on the Financial Services Committee wouldn't observe the 
tradition that we have of yielding to each other. If he had, I could 
have saved the Members a lot of time because I am going to urge people 
to vote for it.
  I will say that it might need a word or two of improvement. If it 
had, in fact, been offered at the Financial Services Committee, either 
provision, we could have accepted it then, but then Members wouldn't 
have had a chance to make dramatic speeches on the floor, so I suppose 
that explains why we had to go through this.
  I urge adoption of the amendment of the recommittal motion, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The motion to recommit was agreed to.
  Mr. FRANK of Massachusetts. Mr. Speaker, pursuant to the instructions 
of the House in the motion to recommit, I report the bill, H.R. 5072, 
back to the House with an amendment.
  The SPEAKER pro tempore. The Clerk will report the amendment.
  The Clerk read as follows:

       Amendment offered by Mr. Frank of Massachusetts:
       At the end of the bill, add the following new sections:

     SEC. 16. PROHIBITION OF MORTGAGE INSURANCE FOR BORROWERS WITH 
                   STRATEGIC DEFAULTS.

       Section 203 of the National Housing Act (12 U.S.C. 1709), 
     as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     subsection:
       ``(z) Prohibition of Mortgage Insurance for Borrowers With 
     Strategic Defaults.--
       ``(1) Prohibition.--The Secretary may not newly insure any 
     mortgage under this title that is secured by a 1- to 4-family 
     dwelling unless the mortgagee has determined, in accordance 
     with such standards and requirements established by the 
     Secretary, that the mortgagor under such mortgage has not 
     previously engaged in any strategic default with respect to 
     any residential mortgage loan.
       ``(2) Strategic default.--For purposes of this subsection, 
     the term `strategic default' means, with respect to a 
     residential mortgage loan, an intentional default having such 
     characteristics or under such circumstances as the Secretary 
     shall, by regulation, provide.''.

     SEC. 17. PROHIBITION ON TAXPAYER BAILOUT OF FHA PROGRAM.

       Section 205 of the National Housing Act (12 U.S.C. 1711), 
     as amended by the preceding provisions of this Act, is 
     further amended by adding at the end the following new 
     subsection:
       ``(h) Taxpayer Protection.--The Secretary shall use all 
     available actions and methods authorized under law to ensure 
     compliance with subsection (f)(2) and to protect the 
     taxpayers of the United States from financial responsibility 
     for any obligations of the Fund, including authority to 
     increase insurance premiums charged under this title for 
     mortgages that are obligations of the Fund, authority to 
     establish more stringent underwriting standards for such 
     mortgages, and authority to increase the amount of cash or 
     its equivalent required to be paid on account of the property 
     subject to such a mortgage.''

[[Page 10502]]

  Mr. FRANK of Massachusetts (during the reading). I ask unanimous 
consent that the reading be dispensed with.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.
  The SPEAKER pro tempore. The question is on the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. FRANK of Massachusetts. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on passage will be followed by a 5-minute vote on 
suspension of the rules with regard to S. 3473.
  The vote was taken by electronic device, and there were--ayes 406, 
noes 4, not voting 21, as follows:

                             [Roll No. 353]

                               AYES--406

     Ackerman
     Aderholt
     Adler (NJ)
     Akin
     Alexander
     Altmire
     Andrews
     Arcuri
     Austria
     Baca
     Bachmann
     Bachus
     Baird
     Baldwin
     Barrow
     Bartlett
     Barton (TX)
     Bean
     Becerra
     Berkley
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blackburn
     Blumenauer
     Blunt
     Boccieri
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boren
     Boswell
     Boucher
     Boustany
     Boyd
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Bright
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Butterfield
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Carter
     Cassidy
     Castle
     Castor (FL)
     Chaffetz
     Chandler
     Childers
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Coffman (CO)
     Cohen
     Cole
     Conaway
     Connolly (VA)
     Conyers
     Cooper
     Costello
     Courtney
     Crenshaw
     Critz
     Crowley
     Cuellar
     Culberson
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (KY)
     Davis (TN)
     DeFazio
     DeGette
     DeLauro
     Dent
     Deutch
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Djou
     Doggett
     Donnelly (IN)
     Doyle
     Dreier
     Driehaus
     Duncan
     Edwards (MD)
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Emerson
     Engel
     Etheridge
     Fallin
     Farr
     Fattah
     Filner
     Fleming
     Forbes
     Fortenberry
     Foster
     Foxx
     Frank (MA)
     Franks (AZ)
     Frelinghuysen
     Fudge
     Gallegly
     Garamendi
     Garrett (NJ)
     Gerlach
     Giffords
     Gingrey (GA)
     Gohmert
     Gonzalez
     Goodlatte
     Gordon (TN)
     Granger
     Graves
     Grayson
     Green, Al
     Green, Gene
     Griffith
     Grijalva
     Guthrie
     Gutierrez
     Hall (NY)
     Hall (TX)
     Halvorson
     Hare
     Harman
     Harper
     Hastings (FL)
     Hastings (WA)
     Heinrich
     Heller
     Herger
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Hoyer
     Hunter
     Inslee
     Israel
     Issa
     Jackson (IL)
     Jackson Lee (TX)
     Jenkins
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones
     Jordan (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilroy
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kline (MN)
     Kosmas
     Kratovil
     Kucinich
     Lamborn
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Latta
     Lee (CA)
     Lee (NY)
     Levin
     Lewis (CA)
     Lewis (GA)
     Linder
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Luetkemeyer
     Lujan
     Lungren, Daniel E.
     Lynch
     Mack
     Maffei
     Maloney
     Manzullo
     Marchant
     Markey (CO)
     Markey (MA)
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCaul
     McClintock
     McCollum
     McCotter
     McDermott
     McGovern
     McIntyre
     McKeon
     McMahon
     McMorris Rodgers
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murphy, Tim
     Myrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Neugebauer
     Nunes
     Nye
     Oberstar
     Olson
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Paulsen
     Payne
     Pence
     Perlmutter
     Perriello
     Peters
     Petri
     Pingree (ME)
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Pomeroy
     Posey
     Price (GA)
     Price (NC)
     Quigley
     Radanovich
     Rahall
     Rangel
     Rehberg
     Reichert
     Reyes
     Richardson
     Rodriguez
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Rothman (NJ)
     Roybal-Allard
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Scalise
     Schakowsky
     Schauer
     Schiff
     Schmidt
     Schock
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sessions
     Sestak
     Shadegg
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stearns
     Stupak
     Sullivan
     Sutton
     Tanner
     Taylor
     Teague
     Terry
     Thompson (CA)
     Thompson (MS)
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Turner
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walden
     Walz
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Westmoreland
     Whitfield
     Wilson (OH)
     Wilson (SC)
     Wittman
     Wolf
     Woolsey
     Wu
     Yarmuth
     Young (AK)
     Young (FL)

                                NOES--4

     Broun (GA)
     Flake
     Honda
     Paul

                             NOT VOTING--21

     Barrett (SC)
     Berman
     Costa
     Davis (CA)
     Davis (IL)
     Delahunt
     Eshoo
     Hensarling
     Hinojosa
     Hoekstra
     Inglis
     Kilpatrick (MI)
     Lummis
     Marshall
     McHenry
     Obey
     Peterson
     Putnam
     Roe (TN)
     Shuster
     Welch


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised there 
are 2 minutes remaining in this vote.

                              {time}  1439

  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Mr. ROE of Tennessee. Mr. Speaker, on rollcall No. 353 I was 
unavoidably detained. Had I been present, I would have voted ``yes.''
  Mr. COSTA. Mr. Speaker, on rollcall No. 353, had I been present, I 
would have voted ``yes.''

                          ____________________