Madam Speaker, I will be happy to engage my good friend from Alabama and both of us go to the Department of Justice, the SEC and begin to file legal action against the unscrupulous investors on Wall Street who took these mortgages knowing…
Madam Speaker, I will be happy to engage my good friend from Alabama and both of us go to the Department of Justice, the SEC and begin to file legal action against the unscrupulous investors on Wall Street who took these mortgages knowing that they had a cheap deal. If he will join me, we will walk down to the Department of Justice right now to get the Attorney General to begin filing major litigation against these scandalous, unscrupulous individuals, if that's what he would like to do.
But right now on the floor of the House we have major legislation that is going to address the question of the suffering of Americans. And I'm going to take this brief opportunity to acknowledge the bill sponsored by my good friend and colleague, Congresswoman Waters, on H.R. 5818. We've passed the rule, but I want to support the underlying premise that once we get through with the major reconstruction, that the bill that we are now discussing and the rule that we're now discussing, we will have $15 billion to go into these communities and be able to buy back these properties and to take them off of the streets and to make sure that low-income individuals that need affordable houses, families that are broken because of the foreclosure scandal will be able to get back into their community. This is good legislation.
Now, as we move forward on the FHA stabilization on the Senate amendments that we're now discussing, the American Housing Rescue and Foreclosure Prevention Act, let us put this in the right perspective. We lost 20,000 jobs in April. We have the bailouts of corporate America everywhere you can see. Airlines are merging, Bear Stearns got $42 billion or more to bail them out, and yet my good friends on the other side of the aisle are not interested in having us do things that the President wants us to do.
He wants us to have, if you will, the government sponsored enterprise reform. He wants us to fix Freddie Mac. He wants us to fix Fannie Mae. He wants to make sure that we provide for disabled veterans. He wants us to be able to invest in the important housing matters, and he wants to make sure that we put Americans back in their houses and put them right side up.
We're not in a recession; we're moving towards a 1929 depression. And I don't know why the other side cannot wake up. This is a good rule for a good bill.
As we make this march toward passing this legislation, I hope that we will also include that those who have lost good credit ratings because they suffered a foreclosure will be able to get back into the good credit rating by being eligible for these programs. Let us not punish those that fell victim to foreclosure because of unscrupulous practices that we're fighting against and their credit score went down to keep them from getting another house. Let's make sure we work that out. That is an idea and an amendment that I have, and I look forward to working with the committee so that as we move forward, we can get this done.
Again, if you can bail out Tom, Dick and Harry, you can at least bail out Mrs. Jones, Mrs. Smith and Mr. Garcia, because these are the hardworking Americans. I stand with them.
Let them stand with the big, rich guys all the time.
Madam Speaker, I rise in support of H. Res. 1175, the Rule Providing for Consideration of H.R. 3221, the ``American Housing Rescue and Foreclosure Prevention Act of 2008.''
I am pleased to support this much needed Housing and Urban Development legislation, to help States purchase and rehabilitate foreclosed homes to stabilize as many properties as possible.
All Americans--homeowners, lenders, communities--indeed our entire economy is worse off when a foreclosure occurs and when significant quantities of homes are foreclosed in a short amount of time.
H.R. 3221 responds directly to the current crisis facing middle class Americans while providing the tools to prevent a repeat of these problems. Modernizing the FHA and reforming the Government Sponsored Entities, GSEs, will provide crucial liquidity to our mortgage markets now, and also strengthen regulation and oversight for the future.
This legislation will begin to repair not bailout the economy, restoring confidence in the markets, limiting the damage to families and neighborhoods, and rejuvenating the communities with new affordable housing.
Texas
There are five steps in the foreclosure process: Step 1: delinquency; Step 2: Notice to cure, where the lender notifies borrower of delinquency and gives him 20 days to amend the problem; Step 3: Default notice and posting--in Texas, foreclosure sales occur on the first Tuesday of the month; Step 4: Foreclosure sale--if borrower is unable to cure default, the property is sold; and Step 5: Active foreclosure.
While there are five steps there are only two stages: Preforeclosure and active foreclosure. In looking at those two stages we see where Texas stands. Last year, Texas ranks fourth behind California, Florida, and Illinois in preforeclosures. Active foreclosures are foreclosed properties sold at auction and now in the lenders' real estate owned accounts. Texas held the top seat in 2007 for active foreclosures. While being number one is something Texans usually strive for, in this case we'd prefer to be much farther down the list.
Texas reported 13,829 properties entering some stage of foreclosure in April, a 16 percent increase from the previous month and the most foreclosure filings reported by any State. The State documented the Nation's third highest State combined foreclosure rate--one foreclosure filing for every 582 households.
Dallas County documented the most new foreclosure filings of any county in the region and a foreclosure rate of one foreclosure filing for every 320 households, an 18 percent increase from the previous month.
Texas and what HUD is Doing
In March, the Department of Housing and Urban Development, HUD, announced the Texas State Program and the cities of Houston and New Braunfels will receive a total of $234,868,077 to support community development and produce more affordable housing. HUD's annual funding will also provide downpayment assistance to first-time homebuyers; assist individuals and families who might otherwise be living on the streets; and offer real housing solutions for individuals with HIV/
Will the gentleman yield?
Were you referring to my remarks? I have great respect for the gentleman. I assume that he was not suggesting that I am a liar.
I would appreciate not having the words drawn down, but I am yielding to the gentleman to just correct the record.
But are you calling me a liar?
Well, I am just asking you if you are calling me a liar. If the gentleman will yield.
Is the gentleman calling me a liar on the floor of the House?
Is the gentleman calling me a liar?
Madam Speaker, parliamentary inquiry.
I thank the gentleman and I thank him for his leadership.
We will address the question of our differences when we vote and when I review the transcript, but I think it's important to note that my words spoke directly to conditions that we're in, that is, a recession that might move toward a depression.
And I thank the gentleman from Georgia who mentioned from the Joint Economic Committee, Americans have much of their savings in their homes. Families in a majority of States will lose more than $2.6 trillion. That sounds like a recession and a depression to me.
A housing crisis affects the broader economy. We're going to be losing $166 billion in foreclosures. We have got to act.
And so we may have a difference, but there is no lying or untruth when we talk about a recession and a depression, and I know my good friend from Texas did not intend to misrepresent that those of us who have a difference of opinion, while we're on this floor to help save the homes of millions of Americans and to help provide engine to the economic activity, are wrong.
We're right and the documentation shows it, and it is not an untruth, and it certainly is not a lie.