Reserving the right to object, and I will not object, if the Senator could amend that to say Senator Boxer will be called on to talk about a couple of amendments following his remarks, I would really appreciate it. I thank the Senator.…
Reserving the right to object, and I will not object, if the Senator could amend that to say Senator Boxer will be called on to talk about a couple of amendments following his remarks, I would really appreciate it.
I thank the Senator.
Guantanamo Bay
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I will be offering two amendments, one of which is going to be second-degreed by Senator Ensign, a friendly amendment we have worked with him on. So we will have a vote on that amendment.
Then the final vote on the other Boxer amendment can be a voice vote without problem. But these are two amendments that are very important to the financial security of the country. One deals with the toxic asset purchase program, the other one deals with making sure our people can actually renegotiate their mortgages if they are in trouble. I will start with that one first.
It seems like common sense if you have a mortgage on your home, you ought to know who holds the mortgage. But in today's real estate market, where the original lender often sells the loan to another entity, you can lose track and not know who actually owns your mortgage. So we are doing a very simple amendment--and I thank Senator Dodd and staff, because they have worked so closely with us to draw this up in a good way. It is very easy: When your mortgage is sold or transferred, the homeowner must be informed who owns that mortgage. This is the way it used to be years ago. I remember many times receiving those notices but suddenly it stopped happening.
I want to give you the example of James and Mary Meyers, who took out a high-rate home loan with Argent Mortgage in 2004. Because the loan violated the truth-in-lending laws, they later attempted to exercise their Federal rights to cancel the loan. But the servicer, who happened to be Countrywide at the time, refused to identify who owned the loan. So by the time the Meyers discovered that the current noteholder was Deutsche Bank, the deadline for canceling the loan had passed. The court dismissed the Meyers' claim, even though it found that there were grounds, legitimately, for the Meyers to cancel the loan.
So this kind of hide-and-seek situation has real-life ramifications. It certainly does with the President's plan now that says, if someone has a mortgage that is under water, they can renegotiate, they have a chance. But if they do not know who holds the mortgage, it is a hollow kind of plan. We know that current law does require homeowners be informed when the servicer of their loan has changed. That is in the law. And Federal law does require that the servicer tell the homeowner the identify of the person holding their mortgage.
But servicers routinely ignore requests from homeowners for information on the noteholder. So this is pretty simple. Simply put, it is worth saying, if someone new is holding your mortgage, the servicer has 30 days to inform you as to who that person is.
While servicers are required to disclose this information, there are no penalties in the law for noncompliance and no remedies for a homeowner faced with a recalcitrant servicer.
The law has also failed to protect homeowners because there is no specific requirement that servicers identify the agent or party with the authority to act on behalf of the note holder.
The Boxer amendment provides borrowers with the basic right to know who owns their loan by requiring that any time a mortgage loan is sold or transferred, the new note owner shall notify the borrower within 30 days of the following: the identity, address, and telephone number of the new creditor: the date of transfer; how to reach an agent or party with the authority to act on behalf of the new creditor; the location of the place where the transfer is recorded; and any other relevant information regarding the new creditor.
To be clear, the amendment does not require borrowers to receive a notification every time a mortgage backed security with a slice of their mortgage changes hands. Those are transactions between investors and do not involve a change in ownership of the physical note.
This amendment only provides transparency and gives borrowers an additional tool to fight illegitimate foreclosures or to negotiate loan modifications that would keep them in their homes.
I do not understand why we have to have a vote on this. I know Senator Dodd has signed off on this. It is a very important amendment. I will read into the Record a list of those supporting this. It is a whole list of consumer groups. I want to list who has endorsed this amendment: the National Consumer Law Center, the National Association of Consumer Advocates, Consumer Action, the Consumer Federation of America, Consumers Union, the National Association of Neighborhoods, the National Council of La Raza, and the National Fair Housing Alliance.
This is a very narrowly targeted amendment with little cost to the industry. But the benefit to homeowners and communities would be absolutely enormous. So it is a simple amendment, common sense. I hope we will have an overwhelming vote for it.
I want to make my statement at this time, and however the chairman wants to dispose of the amendment, if it is accepted by voice, that is fine with me. But if we have to do to a rollcall because we cannot clear it, I ask that we have a rollcall vote.
Amendment No. 1038
The second amendment I will be offering is one that Senator Ensign will be offering a second-degree amendment to. It is a very friendly second-degree amendment. Again, I thank the Banking staff on both sides of the aisle for working with us--Senator Dodd, in particular--to make this a very good amendment.
What we are basically saying is, as we go into a new program which is the Public-Private Investment Program, which basically says that when we take toxic assets off the books of the banks, we want the private sector to come in and give a value to those assets, we do not want the Government doing it.
The private sector plays a very important role. What Senator Ensign and I believe is very important, and Chairman Dodd has agreed, is to make sure it is a very clean process, and there is not a process for collusion between the parties, and no chance to defraud, frankly, the taxpayers.
How could that happen? Hypothetically, you can have a bank that is trying to unload a toxic asset. They want the most they can get for it. They can go to a private party and say: Hey, between us, bid a little bit more for this toxic asset, we will give you a kickback later. They could not call it that. We will take care of you later. That is clearly a no-no. You cannot do that.
Under the Boxer-Ensign language, that would not be allowed. The Treasury would put forward regulations to make sure it is not allowed. We would give the TARP inspector general $15 million to perform audits of selected recipients so we can make sure we are following up with audits and making sure there is no collusion.
We would guarantee there is access to financial data from the Public- Private Investment fund that is necessary to perform these audits, and we would require regulations that are very clear, so that--listen to this--the private sector cannot use money they have borrowed from other Federal programs to pump into the system.
They might be able to use some loans, but we do not want 100 percent of that money being recycled again. In other words, they could take a loan from the Government, then they go buy an asset, and all of the money being used in the program is Government money.
The Boxer-Ensign amendment, which is endorsed by Senator Dodd, and I believe Senator Shelby, I believe has been signed off by both. If I misspeak, I am sure I will be told that. It is a very ``good government'' amendment.
It essentially says as we begin to buy these toxic assets from the banks, we are going to make sure there is no collusion, no fraud, no conflict of interest. We are going to give the inspector general the ability to get the information he or she needs to go in, perform an audit, and keep this program clean.
The last thing taxpayers want is another scandal that revolves around these banks and all of the things they did before. So this is an important amendment.
At this time, I think I have explained both of my amendments. I await hearing from the chairman as to a time to come back and speak for perhaps a minute to generally summarize both of them.
Again, my deepest thanks to Senator Dodd. He has worked so hard. Without his help, we could not be at this point on both these important amendments.
It turned blond.
Mr. President, my understanding is we are ready to go on the Ensign second-degree amendment. So is it not appropriate for me to send the Boxer amendment to the desk at this time?
I call up my amendment.
I ask unanimous consent that reading of the amendment be dispensed with.
Mr. President, I was listening to what my colleague, Senator Barrasso, said about the Environmental Protection Agency, and I know it is a little bit off the work Senator Dodd is doing, but I hope he won't mind if I take about 3 minutes to respond.
I think what is so interesting is that under the Bush administration, the Environmental Protection Agency drafted the endangerment finding. They found that pollution in the form of greenhouse gas emissions--this is the Bush administration--was absolutely an endangerment to the American people. That is the Bush administration.
You may say: Gee, why didn't I hear about that? I will tell you why. The EPA sent that endangerment finding, that proposed endangerment finding, over to the White House, and it was labeled, as you get your e-mails, ``proposed endangerment finding.'' There was advice immediately from the lawyers over at the Bush White House not to open the endangerment finding--not to read it, not to look at it, not to consider it, not to open it because, they said, once it was open, it was in the public domain and the public would learn that, indeed, climate change is an endangerment to the people of this country. We are talking about extreme weather events. We are talking about organisms that do not live in cold waters, but when the waters get warm, they carry disease to our kids. We saw a case in Arizona where that happened: organisms that never lived in these rivers and streams are now living there. Heat stroke. And that is not to mention the issue of the rising waters, that is not to mention the national security issues, and that is not to mention the fact that the way out of this economic mess is to say: We are going to look at this challenge and we are going to respond to it in a way that will create clean jobs, in a way that will lead us out of this morass and lead us to economic prosperity.
Anyone who has read Thomas Friedman's book ``Hot, Flat, and Crowded'' knows that the country that gets on top of this issue of clean energy and clean energy jobs will lead the world. So for my colleague to get up and say: I am holding up the Obama nominees--that is the party of no. That is the party of no, no, no. They want to keep this information from the American people.
Then they talk about lawsuits and the rest. Well, the fact is that the old EPA was sued repeatedly by community groups and environmental groups because they weren't following the law, and every single time, they lost. So the Supreme Court comes down on the side of cleaning up pollution. I am not afraid of lawsuits because the fact is, the people will win the lawsuits.
My message to the EPA is very simple. It is very different from Senator Barrasso, who is holding up qualified nominees--Republicans. They are Republicans they are holding up whom President Obama wants to put into his circle of advisers on the environment. This one particular woman I believe served, Senator Dodd, your State for Republican Governor Rell, and they are holding her up. They are holding her up.
Why? Because they want to continue being the party of no. No, don't open up the endangerment finding; no, don't trust the people with the information; no, don't think about making polluters pay; no, we are not going to go to clean energy and clean jobs and all the prosperity that will come forward with that. It is a sad day.
My friend and I, John Barrasso and I, are very good friends. We like each other. We work together when we can. But on this one he will admit and I will admit we do not share a common view. My view is that science should dictate what we do on the health front and the revival of this economy should dictate what we invest in here, so we invest in these high technologies and we create good, clean jobs. I am very sad to hear that my friend will be holding up, and saying no, to some good people.
I understand his point of view. He has every right to do it. But I hope we will file a cloture motion and I hope we will be able to say to the party of no: Please, there was an election. President Obama won. He deserves to have the people in place that he thinks will give him good advice. If you do not like the advice, then legislate against it. But don't hold up good people.
They are doing it every day. The party of no, no, no, no. The American people want us to work together for their benefit and the benefit of their children and their grandchildren. My message to the EPA is do not be bullied into not doing your job. The endangerment finding you have made provisionally is very close to the same endangerment finding the scientists made under George W. Bush. The difference is, this administration is not going to hide it from the American people. We are going to look at it and we are going to figure out a way to respond to it in such a manner that jobs will be created, exports will be created, technologies will come to the fore. To the party of no, I say look inside yourself. The days of the old energy are coming to an end. They are too polluting, they are too costly, they are subject to the whims of foreign dictators.
I remember when George W. Bush went over and kissed the Saudi prince--I was a little surprised at that--begging, begging Saudi Arabia: Oh, please, please, let us have more oil. And the price went up and up and up. Frankly, it was not until the Democrats here demanded that there be some remedy for price fixing--it was not until then that the prices started going down, because there was manipulation. We know that.
I am disappointed that Senator Barrasso, an important member of the Environment Committee--this is the Environment Committee he is from. It is not the polluting committee. Let's get on with our work. Let's do what is right for the health of the American people. Let's do what is right for the workers in America. Let's develop the technologies. Let's not stand up here, hold decent people up, don't let them get a vote, stop them because you are a little angry that, yes, you did lose the election; and yes, times are changing; and yes, you have to recognize that Lisa Jackson is not Stephen Johnson--who came from a pesticide background, for God's sake.
One thing I found as I look at this administration that I admire--and I do not agree with every single thing they do or say--but I have to say this, they are putting people in place who care about the issue they are supposed to care about. You remember what happened over there with, ``Brownie, you
are doing a great job at FEMA,'' and we had Hurricane Katrina. Brownie had come from the Arabian horses industry. That was his expertise.
Stephen Johnson, EPA, came from a pesticide background. That was his background to head up the Environmental Protection Agency.
Then you had others. You had Spencer Abraham, a nice man. He voted to eliminate the Department of Energy when he was a Senator, and he got to be put in charge of--you got it--the Department of Energy.
I have a great committee I am privileged to chair, but I am distressed that we have to file cloture and stop a filibuster on perfectly well-qualified people, some of whom are Republicans, who are being stopped here by my friend. It is discouraging. But I am optimistic and I know we will get these important nominees through, even though we have to take the time to fight a filibuster and file cloture and get 60 votes. I am convinced we can do it--in closing-- because the American people do not want us to be the party of no, no, no. They want us to be the Senate that is going to bring about positive change for the American people.
I say to Senator Dodd, thank you for your indulgence here.
Reserving the right to object, I wished to respond to Senator Reid and ask a question to the chairman. I have another amendment that has to do with simply letting a homeowner know when his mortgage has been sold. We have objection on the other side. I wished to make it clear to everyone, I am willing to take that on a voice vote and not have to go through a recorded vote. I wished to make that comment. I hope Senator Shelby and his side will allow us to move forward on that.
Mr. President, there is now 2 minutes equally divided on the Ensign amendment; is that correct?
Mr. President, I am here to say this is a very friendly amendment to the underlying Boxer amendment. I hope everyone will support it. I am very proud of the work we did in a bipartisan way. I thank our staffs for doing this. It is a very significant amendment. What we are saying is, as we begin this new program, this Public- Private Partnership to buy toxic assets from the banks, Senator Ensign and I wish to make sure there is no collusion in the dealing, that there is no conflict of interest as this goes by. We wish to make sure the inspector general has the funding required to audit this program in a timely fashion. I am very pleased we have had this bipartisan coming together because we were a little bit far apart. But we worked hard for actually a couple weeks on this.
I urge everyone to vote for the Ensign-Pryor-Boxer second-degree amendment, and then we will move for adoption of the Boxer amendment, as amended.
I yield back the time. I do not see Senator Ensign here, but I know he believes very strongly in this second-degree amendment.
I ask for the yeas and nays.