Mr. Speaker, I rise in support of H.R. 384, the Troubled Assets Recovery Program Reform Act of 2008 and thank Chairman Frank for drafting this bill. In response to the minority leader, we're all very disappointed with this administration.…
Mr. Speaker, I rise in support of H.R. 384, the Troubled Assets Recovery Program Reform Act of 2008 and thank Chairman Frank for drafting this bill.
In response to the minority leader, we're all very disappointed with this administration. We actually asked for accountability and oversight on this bill, but it didn't happen.
The taxpayers want to know what happens to the $350-some billion, and we are all very much concerned how that money is used. That's why this bill has been redrafted--to make sure that we have the kind of accountability and oversight that needs to be in place. If we don't act, more and more people are going to suffer.
That's why I wanted to thank Chairman Frank for supporting the amendments, especially on the intended protection credit union parity and then the original public/private partnership, which I offered in this legislation.
I also want to submit a longer statement on record for these amendments.
Families in my district--and of course the minority leader also has family in his district--are suffering while the Nation's unemployment is at 7 percent and it's 10 percent in my district, and it's expected to climb up to 12 percent by the year 2010. The largest credit union in my district, Arrowhead, just closed 12 branches and reduced its operating budget by 10 percent. And the San Bernardino and Riverside area has the fifth highest foreclosure in the Nation.
Congress created TARP to restore our economy and provide foreclosure assistance to families in need, not to subsidize banks. H.R. 384 corrects this lack of accountability and ensures that the second round of TARP funding maximizes the assistance to homeowners, where it should be going.
I urge my colleagues to support H.R. 384 so that we may improve the health of our housing sector and local economy. And I ask them to support this rule as well.
Mr. Speaker, I rise in support of H.R. 384 because this legislation sets necessary requirements for how Treasury should draw down the remaining half of the TARP funds with new oversight and accountability provisions. It also includes important measures to ensure the TARP program maximizes assistance to homeowners, minimizes foreclosures, and targets resources for underserved communities as Congress originally intended. My bill, H.R. 472, the Family Foreclosure Rescue Corporation also gives Treasury the authority to carry out these functions, so I am pleased they are included in this Act.
In addition to these important provisions, I want to thank Chairman Frank for including the following three amendments which I offered in the manager's amendment. I believe they will go far in further addressing the health of our housing sector and local economies.
The first of these is an amendment I worked on with Representative Keith Ellison that would require tenants in good standing to get adequate notice to vacate properties in foreclosure as well as to assure continued Federal housing assistance for Section 8 voucher holders who lose their homes due to foreclosure. This is especially important in light of the fact that foreclosures are resulting in evictions of homeowners as well as renters whose landlords/property owners can no longer make mortgage payments. Further, the majority of the households who are facing eviction due to foreclosure, homeowners and renters alike, are low income. As the number of people in poverty grows, the number of homeless people could rise by approximately 800,000 people per year. In my district, there are more than 7,000 people in San Bernardino County who are homeless. We must do all that we can to help those who are suffering the most so I am pleased that this bill includes these important protections.
I am also pleased H.R. 384 includes an amendment that I sponsored to enable credit unions to participate in TARP. When Congress enacted the Emergency Economic Stabilization Act, EESA, in October, credit unions were included among the institutions eligible to participate in the TARP Program. However, when Treasury decided to inject capital into financial institutions, instead of purchasing troubled assets, credit unions were effectively shut out of the program. Credit unions in my district are telling me they can't access TARP funds and that they need assistance. The largest credit union in my district, Arrowhead credit union just closed four branches and reduced its operating budget by 10 percent. The problem is that credit unions are generally not permitted by law to accept outside forms of capital. That is why I am appreciative of Chairman Frank's willingness to include my amendment which would permit credit unions to count assistance that they receive from the Federal Government and State Governments as capital for the purposes of prompt corrective action. This amendment to the Federal Credit Union Act would permit those credit unions that need to participate in TARP to have access to the funds, just as other depository institutions do.
The third amendment I offered would help to stabilize the local economy of areas like the Inland Empire and I want to thank Representative Jerry Lewis and Ken Calvert for their support. The California Inland Empire where my district resides has some of the Nation's highest foreclosure rates and steepest decline in housing prices. In response, the counties of San Bernardino and Riverside, along with more than 15 cities within their borders, and over 30 businesses have come together to create the Inland Empire Economic Recovery Corporation, a public-private partnership to keep families in their homes and to restore neighborhoods and communities. This partnership works by leveraging local investment money to purchase and manage local assets. Once purchased, regional partners with the housing market expertise and the financial flexibility will be able to work closely with homeowners to keep them in their homes where outside investors cannot. A regional approach allows partnerships to manage local mortgage assets, thereby stabilizing local economies and maximizing taxpayer's investments. That is why I proposed language that will allow Treasury to consider these regional public-private partnerships when creating their loan purchase program. Giving public- private partnerships the opportunity to partner with Treasury when purchasing, refinancing, and disposing of these loans will keep families in their homes, stabilize communities, and help us achieve the greatest return on our taxpayer dollars.
I thank the chairman once again for his assistance on these amendments which I believe will further address the health of our housing sector and local economies. I urge my colleagues to support