Video archive of the US Congress

House Proceeding 03-05-09 on Mar 5th, 2009 :: 0:26:45 to 0:30:05
Total video length: 1 hours 29 minutes Stream Tools: Stream Overview | Edit Time

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Bob Goodlatte

0:26:32 to 0:26:54( Edit History Discussion )

Bob Goodlatte: types of activities that come about when there is no binding, if you will, judgment that can come about through the bankruptcy court. again is bill forces no one to pay anything. it takes no money out of the federal government. all it does is allows us to treat those fairly who are going into foreclosure. i yield back. the speaker pro tempore: the

Bob Goodlatte

0:26:45 to 0:30:05( Edit History Discussion )
Speech By: Bob Goodlatte

Bob Goodlatte

0:26:55 to 0:27:16( Edit History Discussion )

Bob Goodlatte: gentleman from virginia. >> mr. chairman, i yield myself three minutes. first i'd like to respond to the gentleman fr vermont who made the point that citigroup endorsed this legislation. well, i must american banking association doesn't support this nor do the community bankers, bankers who still have their heads above water all across my congressional district and many

Bob Goodlatte

0:27:17 to 0:27:38( Edit History Discussion )

Bob Goodlatte: others across the country making mortgage loans day in and day out. they don't support this legislation. but a bank that is receiving already tens of billions of dollars in government assistance supports it. that should convince us that this legislation leads us in the right direction. then t gentleman from

Bob Goodlatte

0:27:39 to 0:28:00( Edit History Discussion )

Bob Goodlatte: georgia, i would point out that the congress a number years ago created a special chapter 12 bankruptcy proceeding for farmers, and that was a temporary change in the law as well as this one is. the gentleman's correct t. only applies to existing mortgages. but that law created

Bob Goodlatte

0:28:01 to 0:28:24( Edit History Discussion )

Bob Goodlatte: years ago still exists because it's been extended and extended and we are at risk of having the same thing happen here. particularly when the mindset is we should turn to the advice of banks that are failing to tell us a good way to handle a problem that banks tha are succeeding say it is a bad, bad practice.

Bob Goodlatte

0:28:25 to 0:28:46( Edit History Discussion )

Bob Goodlatte: i also want to speak against this amendment. far from making bankruptcy a last resort, this gives homeowrs two bites at the apple. even if they obtain the obama client loan modification from their lenders, i.e. workouts that meet the terms of president obama's mortgage program, they can still go into bankruptcy. once there they can shop for a

Bob Goodlatte

0:28:47 to 0:29:08( Edit History Discussion )

Bob Goodlatte: better deal from the bankruptcy court. lenders meanwhile have to honor the already cut voluntary deals all the way through bankruptcy. at the end of the case, the homeowner keeps which ever deal is sweeter. that's not making bankruptcy a last resort, that's guaranteeing abuse of both voluntary modification and bankruptcy. we are going to see a run on

Bob Goodlatte

0:29:09 to 0:29:30( Edit History Discussion )

Bob Goodlatte: the bankruptcy courts if this legislation is adopted. meanwhile, what happens to the borrower who rejects an offer meeting president obama's terms? nothing. the bankruptcy court can theoretically refuse to confirm a borrower's cramdown plan, but under the terms of the amendment that will likely happen only when the lender offered a modification without

Bob Goodlatte

0:29:31 to 0:29:55( Edit History Discussion )

Bob Goodlatte: a voluntary cramdown and the borrower has no need for bankruptcy relief anyway. what about borrowers who are within 30 days of foreclosure sale? they don't even have to contact their lenders about voluntary modifications. so none of the amendment accommodations apply. the new manager's amendment does nothing to change this exception that swallows the whole bill.

Bob Goodlatte

0:29:56 to 0:30:07( Edit History Discussion )

Bob Goodlatte: as a result, borrowers who may have entered into mortgages that they shouldn't have in the first place and bankruptcy attorneys can game the system by simply waiting until borrowers are within the 30

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