House Proceeding 03-05-09 on Mar 5th, 2009 :: 1:01:15 to 1:04:45
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1:01:11 to 1:01:31( Edit History Discussion )

Zoe Lofgren: responsible activity. i urge my colleagues to support a commonsense responsible amendment and yield balance of my time. the speaker pro tempore: -- the chair: the gentleman yields back the the gentlelady from california. ms. lofgren: mr. chairman, this amendment would enrich lenders and really gut the bill, damage communities and damage home values.

1:01:15 to 1:04:45( Edit History Discussion )
Speech By: Zoe Lofgren

1:01:32 to 1:01:52( Edit History Discussion )

Zoe Lofgren: in the bill there is a responsible provision for lenders who have had their mortgages adjusted in chapter 13 to recover on a graduated basis values -- should property values aappreciatiate in a sale. what this amendment would do would to turn hoowners into renters for life.

1:01:53 to 1:02:13( Edit History Discussion )

Zoe Lofgren: i'll just point out something else. in bankruptcy law, if you're a speculator you go in and you buy three condominiums on spec and you hope you're going to make a fortune on it and instead the market turns, you go into chapter 13, you can get the principal written down, you can get the interest written down and the homeowner of a

1:02:14 to 1:02:35( Edit History Discussion )

Zoe Lofgren: condo cannot. i would point out that if condo values rise, the speculator under the price amendment gets all the value, the lender gets none. only the homeowner would make -- would be made a renter for life. now, how is that fair in america, a country that's looking for fairness? no, i will not yield.

1:02:36 to 1:02:57( Edit History Discussion )

Zoe Lofgren: i would like to note that currently if a lender forecloses on a home it receives none of the home's appreciation. so what is in the manager's amendment, the balance amendment, i want to credit mr. marshall for his excellent work for putting this in, is a vast improvement over current bankruptcy law as it relates to

1:02:58 to 1:03:18( Edit History Discussion )

Zoe Lofgren: homeowners. now, why is this important? lenders benefit by getting part of their appreciated value and by savings on foreclosure costs. homeowners share in the value of their home's increasing value, and that's the american dream. i would note also that it provides incentives for homeowners who have gone

1:03:19 to 1:03:40( Edit History Discussion )

Zoe Lofgren: through the tric circumstance of losing so much and reorganizing in chapter 13 and the stigma that that entails. it provides them incentive to continue to keep up their properties, to add to the -- to paint their houses and to keep up appearances because they have a stake in the future as well. it's not just some remote bank.

1:03:41 to 1:04:02( Edit History Discussion )

Zoe Lofgren: finally, communities benefit because homeowners have this incentive to maintain their properties. so it's important that this measure proceed. as i mentioned earlier, the price amendment would basically gut this bill. and that would be a mistake. with six million homeowners facing foreclosure that is a disaster not just for those six

1:04:03 to 1:04:24( Edit History Discussion )

Zoe Lofgren: million but for their neighbors. i have seen areas in our country where half the houses are in foreclosure. and i'll tell you, it's a nightmare for everyone in that community, the meth dealers move in, the property values decline, reject the price amendment. the chair: the time of the gentlewoman has expired.

1:04:25 to 1:04:46( Edit History Discussion )

Zoe Lofgren: the question is will the house adopt amendment number 2. those in favor say aye. those opposed, no. in the opinion of the chair, the noes he it. mr. price: mr. chairman, on that i ask for a recorded vote. the chair: the yeas and nays have been requested. pursuant to clause 6 of rule 18, further proceedis on the amendment offered by the gentleman from georgia will be