Video archive of the US Congress

House Proceeding 02-26-09 on Feb 26th, 2009 :: 0:38:00 to 0:42:40
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Barney Frank

0:37:55 to 0:38:15( Edit History Discussion )

Barney Frank: that is this bill. the chair: the gentleman from massachusetts will be is recognized for 15 minutes and be is recognized for 15 minutes. the gentleman from massachusetts. mr. frank: mr. chairn, this bill is a joint product of two committees, the committee on the judiciary and committee on financial services. i very much appreciate the fully cooperative relationship that

Barney Frank

0:38:00 to 0:42:40( Edit History Discussion )
Speech By: Barney Frank

Barney Frank

0:38:16 to 0:38:36( Edit History Discussion )

Barney Frank: the gentleman from michigan and i and the members of the committee staffs have had. working with him has been a pleasure as he h lead in the more controversial parts of this bill. i say that not in denigration by support. i think the bankruptcy provisions, the product of the judiciary committee, not the committee i chair, are essential. i was particularly struck and i

Barney Frank

0:38:37 to 0:38:57( Edit History Discussion )

Barney Frank: will enter into the record letters from the national council of specifically approving the bankruptcy provision and the national association of realtors also approving the bill. obviously there is people entitled to a varietyf opinions, but i think it's relevant to note that two

Barney Frank

0:38:58 to 0:39:19( Edit History Discussion )

Barney Frank: important groups, in housing, the realtors, and the other very much involved in finance, the life insurance council, support the bill, including the bankruptcy provision. there's another reason why bankrupt is relevant to some of the things in the jurisdiction of our committee. even where there are people willing to modify mortgages, there are some legal tangles.

Barney Frank

0:39:20 to 0:39:41( Edit History Discussion )

Barney Frank: we have this form of a a servicer is an entity which has been given control or authority over packages of mortgage securities. even in cases where the servicer has been willing in some cases to do a modification, that entity has faced lawsuits f investors who say you can't do it.

Barney Frank

0:39:42 to 0:40:03( Edit History Discussion )

Barney Frank: there are also second mortgages. that is even in cases where there are willing parties to this on both the lender and borrower side, the fact that there is such rights has been an obstacl bankruptcy is the only way, the only way to cut through that and given the moderate way in which bankruptcy has been put into this bill, that adds to -- let me put it this way people have

Barney Frank

0:40:04 to 0:40:24( Edit History Discussion )

Barney Frank: said let's have o voluntary modification. some modifications that are supported by almost everybody cannot go forward because of this. beyond that this bill has some things that are widely supported. for instance the increase in the insurance deposit limits supported by the community banks and national federation of independent business and almost every other group.

Barney Frank

0:40:25 to 0:40:45( Edit History Discussion )

Barney Frank: it does provide to the services to whom i just alluded a protection that was a bipartisan production of the gentleman from delaware, mr. castle, the gentleman from pennsylvania, mr. kanjorski, to say that if you as the servicer modify a loan that you holdn behalf of investor in ways that will minimize the loss to the investor, you could not be

Barney Frank

0:40:46 to 0:41:06( Edit History Discussion )

Barney Frank: successfully sued because you will carry out your obligation. it authorizes the payment after fee of up to $1,000 for services to modifications because this a job that many of them did not expect. it also improves the hope for homeowners program which when we passed it in july had some hopes and they weren't realized. we didn't do that well. we were at the time responding

Barney Frank

0:41:07 to 0:41:28( Edit History Discussion )

Barney Frank: to pressures that said don't be too generous. as a result, particularly after the senate got through with it, it became unworkable. the impetus for change came in park from the bush administration. the f.h.a. under the bush administration, secretary preston, and commissioner montgomery said you have made this unworkable. we have amendments that say it would make it workable. what we hope coming together is

Barney Frank

0:41:29 to 0:41:49( Edit History Discussion )

Barney Frank: this, no one ought to be encouraged to go bankrupt or think bankruptcy is an easy path. we do prefer voluntary modifications. what we have is a package along with the very good proposals enunciated last week by the president worked on by secretary geithner and secretary donovan, we have a menu of ways using all

Barney Frank

0:41:50 to 0:42:10( Edit History Discussion )

Barney Frank: the powers of the federal government, including the authority which we first gave the bush administration in the tarp bill which they said we rue fused to use. this admintration is using authorities given to the bush administration through freddie may and fannie mack, through tarp, otherways,

Barney Frank

0:42:11 to 0:42:31( Edit History Discussion )

Barney Frank: others, this enhances the authority to do modifications. the result, this is why it's package, we strengthen the community banks in particular with this increase in the does the insurance. we provide a set of options other than bankruptcy to modify. we remove legal obstacles to the

Barney Frank

0:42:32 to 0:42:40( Edit History Discussion )

Barney Frank: extent we can actually do so to such voluntary modifications. but we then believe that in some cases you'll still need to go to bankruptcy to deal with these

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