Housing
Mr. President, let me state that we are waiting for Senator Dodd to come from the Foreign Relations Committee so that we can report the bill and continue moving on the housing bill. I have an amendment I wish to offer. I know the Senator…
Mr. President, let me state that we are waiting for Senator Dodd to come from the Foreign Relations Committee so that we can report the bill and continue moving on the housing bill.
I have an amendment I wish to offer. I know the Senator from Vermont has a modification. I know the Senator from California also has some things she wants to do on this bill. But while we are waiting for Senator Dodd I wanted to say a few things about housing. I want to say a few things about this bill. I have an amendment I wish to offer, but I have a lot on my mind about this housing bill. First of all, I have very serious questions about the bill itself. The original bill that has been brought to the floor takes care of the sharks and the whales, but it does not take care of the little people, the minnows. The Maryland General Assembly did more in their 90 day session that just adjourned than this body has been able to accomplish all year.
When you look at that which will actually help ordinary people work their way out of the foreclosure mess, the legislation is quite Spartan. We lost the bankruptcy provision that would have allowed families to put the pieces back together. The original housing bill had $200 million going to the nonprofit agencies that are working every day with people in those communities to be able to work out their problems. Now, this bill is being held hostage by the other party for more tax cuts we do not need, bigger bailouts for those who do not need them, and it does not help the 8,000 people a day who face foreclosure. We need to improve this bill.
Now, I am so disappointed that Senator Durbin's amendment to amend the Bankruptcy Code to allow workouts did not occur. I know Senator Murray has an amendment to add more money to the front-line groups working with families. I want to thank Senator Murray for offering this amendment and I will have a second-degree adding legal help for the already overburdened nonprofit counselors.
I have seen what this housing crisis means, not by reading the Wall Street Journal but by getting out there and talking to my own constituents, holding roundtables on this subject. What we see is that the subprime housing crisis is a code red emergency. Thousands in my State got caught up in schemes and scams. They were not Wall Street speculators we give a bailout to, they are Main Street Americans who need a workout plan.
My State was hit hard, so at these roundtables we talk to the people who were most affected, the people who actually are facing bankruptcy, to get their stories, get a picture book of what is going on, talk to the nonprofits. But we also talked to the brokers and the Realtors and others in their community. I listened and I learned.
So while everybody here wants to talk about the big macropicture, I want to talk about the macaroni-and-cheese issues. I am on the side of the little people. I talked to a police officer who works every day, putting himself in the line of fire. Because he got into a home equity scam and scheme, he is about to lose his home. I talked to a mother, a single mother who thought she was part of the American dream, and now she is part of the American nightmare.
If you listen to the nonprofits, housing people, like St. Ambrose Housing in my own State, they are trying every day to help people work this problem out. What is it that they need? They need a plan to be able to do a workout. That is why the bankruptcy amendment was a big help. It would have enabled people to responsibly work out their problems. But at the same time, those nonprofits are being overwhelmed by the sheer magnitude of the caseload.
When you look in my own State, there are thousands and thousands of bankruptcies. In 2006, there were 3,000 foreclosures in Maryland. But guess what. In 2007, there were 23,000--23,000 Marylanders are in the foreclosure line. The sheer magnitude of the problem these nonprofit organizations--many of whom are faith-based--have to come to grips with to help these families with advice and counseling shows that we are in great difficulty.
This is why I so support Senator Murray's amendment to add more financial resources to these nonprofits to bring on the staff. I salute Senator Murray because she brings expertise in housing. But where she is a real expert is on people and the suffering people have.
We believe in working with nonprofit organizations that are out there closest to the people to do this. Now, in listening to them, so many of my constituents were steamed and scammed. They faced predatory-- predatory--lending procedures. Some people get mugged when they walk down a back alley. Here, they got mugged when they sat down to sign up for their mortgage or their home equity loan. They were mugged big time.
If you are mugged, you get a lawyer. But if you are in foreclosure, you cannot get one. Legal Services barely can help anybody because the means testing means that that for a family of four, if you have an income over $26,500, you cannot get a legal aid lawyer. Well, if you have that kind of income, you were unlikely to be own housing at least in many areas of the country.
But NeighborWorks can offer help. I will offer an amendment later on this morning that will add $37.5 million as a second-degree amendment-- $37.5 million to the NeighborWorks effort.
This NeighborWorks will do three things.
First of all, they are going to hire more lawyers and more paralegals to help the counseling groups help people work out of these predatory schemes. Why paralegals? They will maximize the lawyers we already have. They will hire more lawyers, particularly those who are semiretired or those young lawyers eager to build their skills, and so on. NeighborWorks and the experienced lawyers will train them.
It will provide money to legal organizations to train more attorneys in foreclosure law. We have lawyers who want to come forth, but they need their training expenses taken care of.
There are paralegals who are looking to not only work for a law firm but to also work for these nonprofits.
Then for the lawyers in foreclosure law, this would allow them to train counselors in some of the basic foreclosure law.
My amendment, I will offer at a later time, is very simple and very straightforward, but wow is it needed. We need to give help to those who are trying to practice self-help to the people who are in foreclosure, to the nonprofits that are trying to help them, and to the lawyers who are trying to advise them.
Remember, if you were mugged in a back alley, you could have access to a lawyer. But if you were mugged when you sat down for a settlement on buying a home, you are going to be on your own. You know what. We cannot have that. I want to have people feel that we are on their side.
Again, we do not seek bailouts. We seek workouts. We want to be able to help those families be able to restore their financial credit, to be able to work out and stay in their home.
When you have foreclosure on a home, it is a terrible tragedy for the family. But it is also a terrible tragedy for the community. So let's all work together. Let's pass a housing bill that helps those who are in need, those who are losing their home.
I yield the floor.
I suggest the absence of a quorum.
I withdraw my suggestion.