House Proceeding 05-07-09 on May 7th, 2009 :: 1:28:20 to 1:48:20
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1:26:35 to 1:28:20( Edit History Discussion )
Speech By: Barney Frank

1:28:01 to 1:28:20( Edit History Discussion )

Barney Frank: the point is not to be as loosely granted as it was. even for qualified mortgages. people got mortgages who shouldn't have gotten them. if you believe that not the past should get a mortgage now, then it would seem to me you want to reduce the availability of credit. the question is how do you do

1:28:21 to 1:28:41( Edit History Discussion )

Tom Price: it? you do it in a sensible way. what's the balance? i reserve the balance of my time. the chair: the gentleman from georgia. mr. price: thank you, mr. chairman. may i inquire to the time avail able? the chair: the gentleman from georgia has one minute remaing. the gentleman from massachusetts 90 seconds. the gentleman from georgia. mr. price: thank you, mr. chairman.

1:28:25 to 1:29:50( Edit History Discussion )
Speech By: Tom Price

1:28:42 to 1:29:02( Edit History Discussion )

Tom Price: i appreciate the comments of my friend the chairman of the committee, but i would point out that the heart of this amendment gets to whether or not through this bill we are going to increase the availability of credit and decrease the cost of credit. if we are not going to do those things, then it seems to me that the american people ought to be very suspect about the nature of

1:29:03 to 1:29:23( Edit History Discussion )

Tom Price: the bill. the amendment simply says that the federal reserve the entity in the federal government that has jurisdiction over this area, it would simply have to say that we will not drease the availability of credit and we will not increase the cost of credit, especially at this time. at this time when so many of our fellow citizens across this land

1:29:24 to 1:29:45( Edit History Discussion )

Tom Price: are having extreme difficulty finding credit, realizing their dream and being able to either stay in their home or find a home with which they would be able to buy credit or gain credit to purchase. simple amendment, mr. chairman. gets to the heart of the matter. are we as a congress going to increase the availability of credit and decrease the cost or

1:29:46 to 1:29:50( Edit History Discussion )

Tom Price: are we going to simply decrease the availability of credit and therefore decrease the ability of the american people to

1:29:51 to 1:30:11( Edit History Discussion )

Barney Frank: realize their dream? i urge adoption of the amendment. the chair: the gentleman's time has expired. the gentleman from massachusetts. mr. frank: i yield myself the remaining time. that's the issue. the gentleman says surprisingly to me we want to increase the availability of credit. let's understand the problem. too many loans made to people who shouldn't have gotten them.

1:29:55 to 1:32:00( Edit History Discussion )
Speech By: Barney Frank

1:30:12 to 1:30:32( Edit History Discussion )

Barney Frank: in some cases the fault of the borrower. in some cases the fault of the lender. in some cases elsewhere. one of the important purposes of this bill is to reduce the pattern of people getting loans who shouldn't have gotten them because they couldn't repay them. so to say that the purpose of this bill is to increase the availability of credit is it to have more subprime loans?

1:30:33 to 1:30:53( Edit History Discussion )

Barney Frank: more borrowers who can't pay back? you want to do it with balance, a reasonable way. i believe we deal with that. if there are questions did we go too far one way or the other? those are legitimate. we discussed a lot of those in committee. there were a loft amendments that were adopted. but i accept my colleague from georgia's definition of the heart of the matter.

1:30:54 to 1:31:14( Edit History Discussion )

Barney Frank: does this bill if it is enacted mean that fewer mortgage loans will be granted going forward than were granted in that period from 2002, 2006, as the gentleman from texas amendment showed or subprime mortgage shot up? i hope so. i hope that we will have fewer mortgages granted to people who couldn't have paid them.

1:31:15 to 1:31:35( Edit History Discussion )

Barney Frank: now, other people we hope things will go better. with the f.h.a. piece we hope to do even more in making credit available. the question here is not -- mr. price: my amendment addresses qualified borrowers. mr. frank: qualified mortgages. part of the problem has been that people got mortgages with bad judgments by people. the chair: the gentleman's time has expired.

1:31:36 to 1:31:57( Edit History Discussion )

Barney Frank: the question is on the amendment offered by the gentleman from georgia. those in favor say aye. ose posed say no. in the opinion of the chair, the noes have it. the amendment is not agreed to. mr. price: with deference to your hearing the chair: for what purpose does the gentleman from georgia rise? mr. price: i ask for the yeas and nays. the chair: pursuant to clause 6 of rule 18, further proceedings on the amendment offered by the gentleman from georgia will be

1:31:58 to 1:32:00( Edit History Discussion )

Barney Frank: postponed. it's now in order to consider

1:32:01 to 1:32:21( Edit History Discussion )

Jerry McNerney: amendment number 8, printed in house report number for what purpose does the gentleman from california rise? mr. mcnerney: i he an the chair: the clerk will designate the amendment. the clerk: amendment number 8, printed in house report number 111-98, offered by mr. mcnortheasterny of california. the chair: pursuant to house

1:32:15 to 1:33:55( Edit History Discussion )
Speech By: Jerry McNerney

1:32:22 to 1:32:42( Edit History Discussion )

Jerry McNerney: resolution 476, the gentleman from california, mr. mcnerney, and a member opposed each will the chair recognizes the gentleman from california. mr. mcnerney: thank you, mr. chairman. i yield myself such time as i may consume. the chair: the gentleman is recognized. mr. mcnerney: i'm proud to offer this amendment to the mortgage reform and anti-predatory lending act. this important bill will crack down on many of the most common

1:32:43 to 1:33:03( Edit History Discussion )

Jerry McNerney: predatory lending practices that have contributed to the housing crisis. h.r. 1728 also includes essential provisions to establish an office of housing counseling to provide consumers with the information they need to make informed mortgage decisions. i'm proud to represent the city

1:33:04 to 1:33:24( Edit History Discussion )

Jerry McNerney: of stockton, california, a city that unfortunately suffers from the -- one of the nation's highest foreclosure rates. back home i hosted several foreclosure assistance workshops where mortgage countors approved by the department of housing and urban development provided unbiased advice to struggling homeowners.

1:33:25 to 1:33:45( Edit History Discussion )

Jerry McNerney: i have seen firsthand how effective counseling -- how effective these counselors are. but counseling resources remain very stretched. the amendment i offer today simply helps counseling agencies serving areas with high rates of foreclosures to get their fair share of grant funding. i'm proud to support the bill we

1:33:46 to 1:33:56( Edit History Discussion )

Jerry McNerney: are considering today and i would ask all of my colleagues to join me in making sure that the areas most hard hit by the housing cris receive the

1:33:57 to 1:34:19( Edit History Discussion )

Judy Biggert: counseling resources they mr. chairman, i reserve the balance of my time. the chair: the gentleman reserves the balance of his time. for what purpose does the gentlewo mrs. biggert: i claim the time in opposition to the amendment even though i'm not opposed to the amendment. the chair: the gentlewoman is recognized for five minutes. mrs. biggert: thank you.

1:34:00 to 1:36:00( Edit History Discussion )
Speech By: Judy Biggert

1:34:20 to 1:34:41( Edit History Discussion )

Judy Biggert: actually i do rise in support of the gentleman from california's amendment which gives the h.u.d. secretary the option of prioritizing funding for h.u.d. certified housing counseling enties located in areas experiencing high foreclosure rates. i think as was said we really have to look at the resources that we have and make sure that

1:34:42 to 1:35:02( Edit History Discussion )

Judy Biggert: they are going to be ud in a veryer well thought out area. so i support it and i'd also like to thank ranking member bachus for his earlier amendment to title 4 to dedicate housing counseling funds to help owners

1:35:03 to 1:35:24( Edit History Discussion )

Judy Biggert: -- homeowners avoid fraudulent foreclosure rescue scams. both amendments strengthen title 4. as the author of the title 4 of the bill which is the same as my bill, h.r. 47, i cannot emphasize enough the importance of housing counseling, especially when it comes to helping homeowners in trouble my congressional district, h.u.d. certified housing

1:35:25 to 1:35:47( Edit History Discussion )

Judy Biggert: counselors have the patience, expertise, and experience to help homeowners at the end of thr rope. these counselors have been a lifeline to struggling families often helping families get their budget in order, improve communications with a lender or server, and most importantly help save their homes. so many of the problems out there could have been avoided if

1:35:48 to 1:36:00( Edit History Discussion )

Judy Biggert: consumers secure this kind of financial literacy before signing on the dotted line for a mortgage. they would be armed with the ability to make better decisions about a mortgage.

1:36:01 to 1:36:22( Edit History Discussion )

Jerry McNerney: however many homeowners did not secure this advice and are in dire straits today. i urge my colleagues to support this amendment and yield back. the chair: the gentlewoman yield back the balance of her time. the gentleman from california. mr. mcnerney: thank you, mr. speaker. i just want to say i thank the gentlewoman from illinois for her leadership on this issue for using counseling.

1:36:05 to 1:37:00( Edit History Discussion )
Speech By: Jerry McNerney

1:36:23 to 1:36:43( Edit History Discussion )

Jerry McNerney: again i have seen too many families that are in trouble and could have used help early on in the process or are in trouble and could use help now to salvage the best of a bad situation. with that i yield back the balance of my time. the chair: the question st amendment offered by the gentleman from california. so many as are in favor say aye. those opposed, no.

1:36:44 to 1:37:01( Edit History Discussion )

Jerry McNerney: in the opinion of the ch ayes have it. the endment is agreed to. it is now in order to consider amendment number 9 printed in house report 111-98. for whaturpose does the ge rise? mr. mchenry: i have an amendment at the desk. the chair: the clerk will designate the amendment. the clerk: amendment number 9

1:37:02 to 1:37:22( Edit History Discussion )

printed in house report number 111-98, offered by mr. mchenry the chair: pursuant to house resolution 406, the gentleman from mcmc, mr. mchenry, and a member opposed, each will control five minutes. the chair gentleman from north carolina. mr. mchenry: thank you, mr. speaker. in 2007 this bill passed the house with no subsequent action

1:37:23 to 1:37:44( Edit History Discussion )

in the senate. . >> there are rules of establishing under hopa that will virtually eliminate all subprime lending. when the fed released these new

1:37:45 to 1:38:05( Edit History Discussion )

Patrick T. McHenry: regulations chairman frank described the fed's response to tighten the restrictions as quote a very strong consumer protection. although i heard the arguments made by my colleagues on the other side of the ai fed's regulations don't go far enough to further eliminate

1:37:45 to 1:39:55( Edit History Discussion )
Speech By: Patrick T. McHenry

1:38:06 to 1:38:26( Edit History Discussion )

Patrick T. McHenry: certain lending in the marketplace. now i say eliminate instead of prohibit, because byefining a class of loans under hopa, you are essentially killing that class of loans, never mind the fact they may be a reasonable

1:38:27 to 1:38:51( Edit History Discussion )

Patrick T. McHenry: option for a number of consumers. i say eliminate because these loans are not financed or securitized in a normal marketplace, much less the severely restricted marketplace we have in lending. the reason why there's not lending under hopa is due to the significant loss.

1:38:52 to 1:39:13( Edit History Discussion )

Patrick T. McHenry: in 2006, when we had a normal functioning mortgage marketplace, of the 10 million loans made less than 1% were hopa loans. by expanding it even further than the fed has already done, we would be killing options for millions of people to get future lending and ensuring that an already restricted mortgage

1:39:14 to 1:39:34( Edit History Discussion )

Patrick T. McHenry: marketplace, things will become even more restricted. mr. speaker, members need to ask themselves if the marketplace for mortgages is going to be so heavily regulated with so many new protections included in the rest of this bill, why in the world do we need title 3 of this bill.

1:39:35 to 1:39:55( Edit History Discussion )

Patrick T. McHenry: my amendment strikes title 3. during the committee hearing earlier this month, massachusetts bank supervisor expressed his concern that the dramatic expansion of hopa will result in much fewer loans being made. is this really the direction the congress wants to take right now, further restricting the

1:39:56 to 1:40:16( Edit History Discussion )

Brad Miller: mortgage marketplace? mr. speaker, i a colleagues for striking title 3 of this bill. and i retain the balance of my time. the chair: the gentleman reserves the balance of his time. for what purpose does the gentleman from north carolina rise? mr. miller: claim timen opposition. the chair: the gentleman is

1:40:00 to 1:42:15( Edit History Discussion )
Speech By: Brad Miller

1:40:17 to 1:40:38( Edit History Discussion )

Brad Miller: recognized for five minutes. mr. miller: mr. mchenry and other proponents of this bill have said that the bill would have the effect of outlawing certain kinds of loans and limiting choices. yes, mr. speaker, mr. chairman, we do intend to limit choices. they say they will defend to the death of right of consumers to choose to get chted blind, to

1:40:39 to 1:40:59( Edit History Discussion )

Brad Miller: life savings and we want to don't think that consumers really choose that. when someone needs to borrow ney to buy a house or borrow money against their house or get a credit card or overdraft fees or whatever else, they shouldn't have to swim in waters filled

1:41:00 to 1:41:22( Edit History Discussion )

Brad Miller: with fins. there should be some protections. this amendment changes in a fairly modest way the protections of hopa for high cost loans, which are highly regulated loans and because they are highly regulated, they are made. it allows loans up to 6.5%

1:41:23 to 1:41:44( Edit History Discussion )

Brad Miller: higher than prime. or subdinate loans, 8.5%. it raises the upfront costs that triggers a high cost loan from 8% to 5% and closes some of the triggers. do wwant fewer loans like that made? yes, mr. chairman, we do. that's exactly what we intend. north carolina did something

1:41:45 to 1:42:05( Edit History Discussion )

Brad Miller: very much like this in 1999. the commissioner of the banks of north carolina has testified repeatedly before congress. there was a study at the university of north carolina chapel hill business school, at looked into it and found there was no change, in the availability or terms of credit,

1:42:06 to 1:42:15( Edit History Discussion )

Brad Miller: mortgage credit in north carolina. did people make fewer loans like this? yes. that was the whole point. they got better loans.

1:42:16 to 1:42:40( Edit History Discussion )

Patrick T. McHenry: that's the point, making sure that people get i reserve the balance of my time. the chair: the gentleman reserves the balance of his time. the gentleman from north carolina. mr. mchenry: as a proponent of the legislation, i have the right to close? the chair: the gentleman from

1:42:20 to 1:44:20( Edit History Discussion )
Speech By: Patrick T. McHenry

1:42:42 to 1:43:04( Edit History Discussion )

Patrick T. McHenry: north carolina has the right to close. mr. mchenry: pardon me? the chair: the gentleman from north carolina, mr. miller, has the right to close because he is the manager in opposition to the amendment and member of the committee. mr. mchenry: thank you, mr. speaker.

1:43:05 to 1:43:28( Edit History Discussion )

Patrick T. McHenry: well, in closing, in summation, my colleague from north carolina has made the argument why you should strike section 3. his quote is yes, we intend to limit choices, mr. speaker. i think that's the wrong attitude this congress should take. the fact is that for those who have less than perfect credit, this section of the legislation

1:43:29 to 1:43:50( Edit History Discussion )

Patrick T. McHenry: will hamper their ability to get mortgages and purchase homes. that's the simple fact. in fact, my colleague from north carolina says that yes, they intend to limit choices. they want to eliminate choices in the marketplace for lending and further restricting lending. i think that's the wrong path, mr. speaker.

1:43:51 to 1:44:11( Edit History Discussion )

Patrick T. McHenry: i think that's the wrong attitude this congress should take. i think it limits choices for our consumers. and mr. speaker, when this becomes law, if we do not strike this section, members will have to go home and answer to their constituents why can't i get the lending i need to purchase a home?

1:44:12 to 1:44:20( Edit History Discussion )

Patrick T. McHenry: and we can point to this very vote on whether or not they're in favor of more options in the marketplace or fewer, restricting choices, restricting

1:44:21 to 1:44:41( Edit History Discussion )

Brad Miller: opportunities, eliminating certain types of mortgages in the marketplace. i think we should eliminate section 3, and with that, i yield back. the chair: the gentleman yields back the balance of his time. the gentleman from north carolina. mr. miller: i'm happy to go home to north carolina and explain to voters that i did vote against

1:44:25 to 1:45:40( Edit History Discussion )
Speech By: Brad Miller

1:44:42 to 1:45:02( Edit History Discussion )

Brad Miller: allowing loans thatould be more than 6.5% higher than prime , highly regulated loans. these loans are made and are rare and should be rare. does anyone really think there were not enough bad loans made in the last few years?

1:45:03 to 1:45:25( Edit History Discussion )

Brad Miller: it's been in the papers that we have a floshe cris and now have a financial crisis. we need better loans. those loans were not making credit available to people who couldn't get credit otherwise. it was people being cheated. and we need to do better. i yield back. the chair: the question is on the amendment offered by the

1:45:26 to 1:45:40( Edit History Discussion )

Brad Miller: gentleman from north carolina. those in favor say aye. those opposed, no. in the opinion of the chair, the noes have it -- for what purpose does the gentleman from north carolina rise? mr. mchenry: i request the yeas and nays. the chair: further proceedings on the amendment offered by the

1:45:41 to 1:46:01( Edit History Discussion )

gentleman from north carolina, mr. mchenry, will be postponed. it is now in order to consider amendment number 10 printed in house report 111-98. for what purpose does e gentlewoman from pennsylvania rise? mrs. dahlkemper: mr. chairman, i have an amendment at the desk. the chair: clerk will designate the amendment. the clerk: amendment number 10,

1:46:02 to 1:46:24( Edit History Discussion )

offered by mrs. dahlkemper of pennsylvania. the chair: pursuant to resolution 406, mrs. dahlkemper and a member opposed each will control five minutes. the chair now recognizes the gentlewoman from pennsylvania. mrs. dahlkemper: i yield myself such time as i may consume. the chair: the gentlewoman from is recognized. mrs. dahlkemper: i offer an amendment to h.r. 1728, the mortgage reform and

1:46:25 to 1:46:45( Edit History Discussion )

anti-predatory lending act, legislation that will curb predatory lending and other egregioupractices in the nation's highest home foreclosure rate in 25 years. my amendment adds the financial literacy component to the underlying bill, especially during these period of economic

1:46:46 to 1:47:06( Edit History Discussion )

recession, it's critical that borrowers have the necessary information to make smart, financial decisions in purchasing a home. h.r. 1728 requires the department of housing and urban development publish a guide for prospective borrowers at least every five years. this guide explains the concept of balloon paymentsprepayment penalties and the tradeoff of

1:47:07 to 1:47:28( Edit History Discussion )

the interest rate. prepayment penalties are limited in certain circumstances and even prohibited in others. prepayment limit consumers or make partial payments when the consumer has the means and the desire to do so. my amendment as a requirement that the advantages of loan

1:47:29 to 1:47:51( Edit History Discussion )

prepayment also be included in the h.u.d. consumer education guide. i believe it's important to provide prospective borrowers with an explanation of the substantial and positive economic impacts that even modest prepayments during the early years during the loan term may have. having this knowledge will allow

1:47:52 to 1:48:13( Edit History Discussion )

borrowers to weigh the pros and cons before they lose the opportunity to either bargain them out of their loan document or seek out other lending options. i urge my colleagues to support financial literacy as well as the underlying legislation. i reserve the balance of my time. the chair: the gentlewoman

1:48:14 to 1:48:34( Edit History Discussion )

reserves her balance. for what purpose does the gentleman from texas rise? without objection, the gentleman from texas is recognized. mr. neugebauer: the gentlewoman offers a thoughtful amendment. i appreciate her amendment and with that, we support that. and we yield bk the balance of our time.