House Proceeding 02-26-09 on Feb 26th, 2009 :: 0:10:15 to 0:13:55
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0:10:11 to 0:10:31( Edit History Discussion )

Zoe Lofgren: we all know however that the grave consequences of filing for bankruptcy means that we'll always be a last report. thank you, chairman conyers and chairman frank, for your leadership on this issue. i yield back the balance of my time. the chair: the gentleman from ohio. mr. jordan: i yield two minutes to our distinguished colleague from california, mr. lungren.

0:10:15 to 0:13:55( Edit History Discussion )
Speech By: Zoe Lofgren

0:10:32 to 0:10:52( Edit History Discussion )

Zoe Lofgren: the chair: the gentleman from california is recognized for two minutes. mr. lungren: thank you very much, mr. chairman. the mr. chairman, the suggestion has been made that it makes no sense to treat primary residences in the way that the current bankruptcy law does. in fact supreme court justice stevens in the case of nobleman vs. american savings bank explained why we have this.

0:10:53 to 0:11:13( Edit History Discussion )

Zoe Lofgren: when we said that at first blush it seems somewhat strange the bankruptcy code could provide less protection to an individual's interest in retaining possession of his or her home than of other assets. the anomaly is, however,, plained by the legislative history indicating that favorable treatment of residential mortgages was

0:11:14 to 0:11:34( Edit History Discussion )

Zoe Lofgren: intended to encourage the flow of capital into home lending markets. in other words, it is precisely because we want to promote homeownership that it is treated in this way. now, we in the judiciary committee believe we can do a lo but one thing we have been unable to do but we are trying to do it once again is suspend the laws of economics.

0:11:35 to 0:11:56( Edit History Discussion )

Zoe Lofgren: this suggests that this change will have no impact whatsoever. the change will have this impact. it will include higher risk premiums on all mortgages in the future because uncertainty now involved with respect to home mortgages. that's what's going to happen. i had a telephone town hall in

0:11:57 to 0:12:17( Edit History Discussion )

Zoe Lofgren: my district with thousands of people on the line. one person said to me how is that fair? how is that fair to me? how is that fair to my children and my grandchildren when this means this is going to increase the costs of home mortgages in the future across the board and maybe limit the accessibility to

0:12:18 to 0:12:38( Edit History Discussion )

Zoe Lofgren: home mortgages in the future to those very people we say we are trying to help? sometimes it is more than just a sentiment that we have to act on here. it is reality. d unless laws of economics, this provision will actually undo what the bill is intended to do that is help people be able to

0:12:39 to 0:13:02( Edit History Discussion )

Zoe Lofgren: have access to mortgages help people get lower rates. this is one of the reaso you have lower rates for home mortgages than you do for second homes. has expired. mr. jordan: yield an minute. the chair: the gentleman is recognized. mr. lungren: some people have suggested, look, it's treated differently in all other aspects. interestingly enough, if you

0:13:03 to 0:13:23( Edit History Discussion )

Zoe Lofgren: look at chapter 12 do with agricultural loans, and you see the argument b that well when they made that change there it had no impact, interestingly enough it was during the clinton administration that department of agriculture concluded have substantially increased

0:13:24 to 0:13:45( Edit History Discussion )

Zoe Lofgren: costs for farm that's not the bush administration. that's not a republican economist. that's the clinton administration, their department of agriculture concluding that this type of a change in the agricultural setting substantially increased costs for home businesses. if you want to substantially increase the cost for home

0:13:46 to 0:13:55( Edit History Discussion )

Zoe Lofgren: mortgages in the future, across the board, for all americans then vote for this provision. go home and talk about how you