OFFICE OF THE MAJORITY LEADER

TRANSCRIPT

Statement on Housing Rescue and Foreclosure Prevention Act
July 23, 2008

... THE CHAIRMAN OF THE COMMITTEE FOR HIS LEADERSHIP ON IT AND FOR INCLUDING A PROVISION THAT DEALS WITH THE COUNSELING IN THIS BILL THAT I SUPPORT AND I'D LIKE TO SUBMIT MY STATEMENT FOR THE RECORD. THANK YOU VERY MUCH, I YIELD BACK THE BALANCE OF MY TIME. THE SPEAKER PRO TEMPORE: WITHOUT OBJECTION. MR. FRANK: I NOW YIELD ONE MINUTE TO THE MAJORITY LEADER. THE SPEAKER PRO TEMPORE: THE MAJORITY LEADER, THE GENTLEMAN FROM MARYLAND, IS RECOGNIZED FOR ONE MINUTE. MR. HOYER: I THANK THE CHAIRMAN. FREQUENTLY I RISE IN SUPPORT OF A BILL AND CONGRATULATE THE CHAIRMAN. IT'S ALWAYS WARRANTIED TO DO THAT. BUT IN THIS CASE IT IS PARTICULARLY WARRANTED. NO MEMBER HAS WORKED HARDER, LONGER, IN A MORE COMPLEX CONTEXT THAN HAS CHAIRMAN FRANK, WORKING WITH SECRETARY PAULSON, THE ADMINISTRATION, WITH MR. DODD, MR. BACHUS AND MR. SHELBY. WHILE I KNOW THERE MAY NOT BE FULL AGREEMENT, I KNOW THERE HAS BEEN THE OPPORTUNITY TO WORK TOGETHER AND I WANT TO CONGRATULATE MR. FRANK, WHO HAS BEEN LIONIZED IN THE PRESS, PROPERLY SO, FOR HIS EXPERTISE ON THE SUBJECT MATTER AND HIS POLITICAL SKILL IN BRINGING THIS MATTER TO THE FLOOR TODAY IN A FASHION THAT WILL SEE ITS PASSAGE. MR. SPEAKER, WHEN IT COMES TO ECONOMICS, NONE OF US IS AN ISLAND. OUR PROSPERITY IS ALWAYS AND WILL ALWAYS BE BOUND UP WITH THE PROSPERITY OF OUR NEIGHBORS. NOTHING HAS PROVED THAT MORE THAN THE MORTGAGE CRISIS ROCKING OUR ECONOMY TODAY. YES, IT HAS REACHED TO THE HEIGHTS OF WALL STREET TO THREATEN HUGE BANKS THE GOVERNMENT SPONSORED ENTERPRISES FANNIE MAE AND FREDDIE MAC. BUT THE CRISIS BEGAN CLOSE TO HOME. IT BEGAN WITH MILLIONS OF FAMILY WHO WAS SEEN THEIR SUBPRIME MORTGAGE RATES JUMP OUT OF REACH. SOMETIMES BECAUSE THEY DIDN'T UNDERSTAND THE REPERCUSSIONS BUT OFTEN BECAUSE THEY DEALT WITH UNSCRUPULOUS LENDERS. HOME PRICES ARE SET TO DECLINE FOR THE SECOND YEAR RUNNING, THE FIRST TIME THAT'S HAPPENED SINCE THE GREAT DEPRESSION. COMMUNITIES ARE FACING A VICIOUS CYCLE OF FORECLOSURES, FALLING PROPERTY VALUES, DECLINING PROPERTY TAX COLLECTIONS, CUTBACKS IN CITY SERVICES, RISING CRIME, AND MORE FORECLOSURES. THE AMERICAN PUBLIC RIGHTFULLY EXPECTS US TO ACT SYSTEM OF THE BILL WE DEBATE TODAY ISN'T SIMPLY ABOUT HELPING HUNDREDS OF THOUSANDS OF AMERICANS KEEP THEIR HOMES, AS VITAL AS THAT OBJECTIVE IS IT'S ABOUT STABILIZING AN ENTIRE ECONOMY. WE'VE TALKED ABOUT A STIMULUS BILL THIS IS A VERY IMPORTANT COMPONENT OF THE STIMULUS OF OUR ECONOMY. AS FED CHAIRMAN BERNANKE PUT IT, AND I QUOTE, DOING WHAT WE CAN TO PREVENT FORECLOSURES IS NOT JUST IN THE INTEREST OF BORROWERS, IT'S IN EVERYBODY'S INTEREST. IT'S OUR ECONOMY'S INTEREST. I COULDN'T AGREE MORE. THAT'S WHY I'M PROUD TO STAND IN SUPPORT OF THIS HOUSING RESCUE AND FORECLOSURE PREVENTION ACT THIS LEGISLATION WILL ENABLE AT LEAST 400,000 HOMEOWNERS, THAT'S 400,000 FAMILIES, TO REFINANCE THEIR HOMES, SWITCHING FROM RISKY SUBPRIME MORTGAGES TO SAFER LOANS BACKED BY THE FEDERAL HOUSING ADMINISTRATION. IT'S NOT ABOUT A BAILOUT. LENDERS WILL HAVE TO TAKE LOSSES AND BORROWERS MUST AGREE TO SHARE WITH THE GOVERNMENT ANY PROFIT FROM THE RESALE OF A REFINANCED HOME. THAT'S RIGHT, IT'S APPROPRIATE, THAN BILL CONTAINS IT. THE BILL ALSO HELPS STABILIZE COMMUNITIES REELING FROM FORECLOSURES AND DECLINING PROPERTY VALUES BY HELPING STATES AND CITIES BUY UP FORECLOSED PROPERTIES. NOT JUST WILL THE HOMES IN QUESTION BE BOUGHT UP, ENTIRE NEIGHBORHOODS WILL BE PROTECTED. FRURTMORE, THIS BILL CREATES A STRONG, INDEPENDENT REGULATOR FOR FANNIE MAE AND FREDDIE MAC. I HAVE OBSERVED OFTEN THAT ONE OF THE PROBLEMS IN OUR ECONOMY HAS BEEN THAT OVER THE LAST 7 1/2 YEARS, WE'VE TAKE THEN REFEREE OFF THE FIELD. THIS BILL REINSTATES A VIGOROUS REFEREE. IT ALSO GIVES THE PRESSURERY DEPARTMENT TEMPORARY AUTHORITY TO EXTEND CREDIT TO THE G.S.E.'S, SHOULD THEY REQUIRE IT. THE CONGRESSIONAL BUDGET OFFICE CONCLUDED THERE IS PROBABLY BETTER THAN A 50% CHANCE, AND I QUOTED THAT, THAT THIS AUTHORITY WILL NOT BE USED. BURR EVEN IF IT IS NOT, THIS BILL WILL GO A LONG WAY TOWARD SHORING UP CONFIDENCE IN OUR FINANCIAL MARKETS. MR. SPEAKER, THERE IS BARELY A MEMBER IN THIS BODY WHOSE CONSTITUENTS HAVE NOT FELT THE PAIN OF THE HOUSING CRISIS WHETHER THE PERSONAL CRISIS OF LOSING A HOME OR THE RIPPLE EFFECT SET OFF BY EACH ...