Senate Proceeding on Dec 14th, 2007 :: 1:00:20 to 1:07:50
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0:52:38 to 1:00:20( Edit History Discussion )
Speech By: Benjamin L. Cardin

1:00:01 to 1:00:20( Edit History Discussion )

Benjamin L. Cardin: up this legislation as soon as possible. the problems are now. we need to address these issue immediately. the sooner we act, the more families the dream of homeownership will be continue -- will

1:00:20 to 1:00:37( Edit History Discussion )

Michael Crapo: continue to be realized. mr. president, i yield the floor. the presiding officer: who yields time.| mr. martinez: we have reached an understanding on the use of the remaining time. i would like to yield in opposition

1:00:20 to 1:07:50( Edit History Discussion )
Speech By: Michael Crapo

1:00:37 to 1:00:52( Edit History Discussion )

Michael Crapo: to the amendment, eight minutes to senator crapo. the presiding officer: off whose time? mr. martinez: the time in opposition which -- senator schumer is not on the floor so ... the presiding officer:

1:00:52 to 1:01:07( Edit History Discussion )

Michael Crapo: is there objection? without objection, so ordered. mr. martinez: and it will go back to the remaining speakers on the democratic side. mr. crapo: i rise in opposition to the coburn amendment. this

1:01:07 to 1:01:19( Edit History Discussion )

Michael Crapo: amendment calls into question how we are going to modernize the reverse mortgage program often called the heckem program. i've been a long supporter of this program and have worked with a number of

1:01:19 to 1:01:37( Edit History Discussion )

Michael Crapo: other members of the banking committee, a bipartisan group, to remove the volume limit on the amount of reverse mortgages the f.h.a. may ensure, and i thank those other senators who have been working with

1:01:37 to 1:01:49( Edit History Discussion )

Michael Crapo: us on: senator dodd, senator shelby, senator reid and senator allard. i understand the concerns my colleague from oklahoma is raising about the need to further understand and be able to evaluate the

1:01:49 to 1:02:03( Edit History Discussion )

Michael Crapo: development of the reverse mortgage industry. although i support the report that is in the bill that will help us it dohat, it's vy important to understand why this amendment is the wrong approac

1:02:03 to 1:02:13( Edit History Discussion )

Michael Crapo: to getting a better handle on understanding reverse mortgages. there has been a cap imposed on the number of reverse mortgages that can be issued by the f.h.a. and by h.u.d. and that cap has already been

1:02:13 to 1:02:27( Edit History Discussion )

Michael Crapo: reached. so, if we don't lift the cap while we conduct this study, the program essentially terminates. the reason we must not allow that to happen is the very reason the senator from oklahoma has

1:02:27 to 1:02:41( Edit History Discussion )

Michael Crapo: been talking about: we need to have further ability to study the program and to refine its effectiveness. that's what the study is in place for. we need a program in place if the study to continue.

1:02:41 to 1:02:54( Edit History Discussion )

Michael Crapo: what does the report that we included in the bill actually do? it requires the g.a.o. help congress analyze and determine the effects of limiting the amounts of the costs or fees under the program from

1:02:54 to 1:03:06( Edit History Discussion )

Michael Crapo: the amounts charged under the program as of the date of enactment. and it goes through a number of requirements. for example, requiring that we focus on the costs to mortgagers for participating, the

1:03:06 to 1:03:18( Edit History Discussion )

Michael Crapo: financial soundness of the program, the availability of credit under the program, the cost to the elderly homeowners under the program, particularly evaluating mortgage insurance premiums charged under

1:03:18 to 1:03:35( Edit History Discussion )

Michael Crapo: the program, the upfront fees charged and the margin rates charged. i went through that on purpose because i think it's important we understand there are issues here about reverse mortgages that we

1:03:35 to 1:03:50( Edit History Discussion )

Michael Crapo: are studying but the issues right now, i think, focus most significantly on making sure the elderly who are participating in this program don't pay significantly or overly significantly high upfront fees.

1:03:50 to 1:04:05( Edit History Discussion )

Michael Crapo: the program is very very successful in terms of protecting the taxpayer. over the next five years it is estimated that not only will this program not cost the taxpayers any money it is estimated to generate

1:04:05 to 1:04:18( Edit History Discussion )

Michael Crapo: approximately $1.5 billion in revenues to the treasury over the next five years of the fees that are being charged as the mortgages are entered. i think it's important to note that because it's going

1:04:18 to 1:04:32( Edit History Discussion )

Michael Crapo: to be critical for the future of this program that we understand what the level of fees should be, what the level of the mortgage premium should be, and have the ability to work effectively as we

1:04:32 to 1:04:45( Edit History Discussion )

Michael Crapo: move forward in refining the program. reverse mortgages are a unique loan that enable a senior to remain in their homes and to remain financially independent by converting part of the equity in their

1:04:45 to 1:04:56( Edit History Discussion )

Michael Crapo: homes into tax-free income without having to sl their home, without having to give up title and without having to engage in making a new monthly mortgage payment. the reverse motor is aptly named because

1:04:56 to 1:05:09( Edit History Discussion )

Michael Crapo: the payment stream is reversed. instead of making monthly payments to the lender as with a regular mortgage, the lend are makes the payments to the homeowner. this program was created to serve our

1:05:09 to 1:05:23( Edit History Discussion )

Michael Crapo: seniors who are cash poor but equity rich. they need to have a cash flow but they do have significant equity in their home the have built up during their lifetime. the majority of these loan recipients

1:05:23 to 1:05:36( Edit History Discussion )

Michael Crapo: are elderly widows. the funds from a reverse mortgage can be used for anything: for home repairs or modifications, for health care expenses, for prescription drugs, inhome care, for existing debts,

1:05:36 to 1:05:49( Edit History Discussion )

Michael Crapo: for prevention of forecloture or -- foreclosure or any other needs the elderly have. as reverse mortgages are more understood and real life success stories have been told this program has grown and there

1:05:49 to 1:06:00( Edit History Discussion )

Michael Crapo: is a significantly increased interest in it. clearly, this sector of our industry is going to continue to grow as baby boomers get older and as the consumer acceptance and understanding of the program

1:06:00 to 1:06:15( Edit History Discussion )

Michael Crapo: increases. increased lend are partial has led to competition that's resulted in mortgage fee reductions already across the country. now, the point that i'm leading to is simply this: this is a program

1:06:15 to 1:06:30( Edit History Discussion )

Michael Crapo: that we must not stop dead in its tracks by reimposing the cap. it's critical that the legislation we have put telling that lits the cap while we are conducting this study and make sure we better

1:06:30 to 1:06:45( Edit History Discussion )

Michael Crapo: understand how to approach defining the level of support for the program is able to continue rather than as the amendment would do, simply reimpose the cap and essentially stop the program. at that

1:06:45 to 1:06:56( Edit History Discussion )

Michael Crapo: point there would be nothing further to study because the program would be ended. mr. president, i think we can all agree that we need to accept these kinds of unique and helpful programs for those

1:06:56 to 1:07:09( Edit History Discussion )

Michael Crapo: in our country who have reached a point in their life where they have significant equity but don't have the cash flow they need to meet their critical life needs. and this program is one which helps

1:07:09 to 1:07:22( Edit History Discussion )

Michael Crapo: them. it helps them in a way that preserves their dignity, preserves their ability to live in their own home and assures they have an opportunity for a cash flow that will enable them to live out their

1:07:22 to 1:07:33( Edit History Discussion )

Michael Crapo: life in a way that does not put them constantly wondering how they're going to make the next month's payments. with that, i yield become the reminder of my time. the presiding officer: who yields time?

1:07:33 to 1:07:50( Edit History Discussion )

Michael Crapo: mr. schumer: mr. president, i yield three minutes to the distinguished senator from missouri, senator mccaskill. the presiding officer: the senator from missouri is recognized for three minutes. mrs.

1:07:50 to 1:08:06( Edit History Discussion )

Claire McCaskill: mccaskill: mr. president, i am very interested in this legislation and i do support the bill i think the reverse mortgage is an important tool for many elderly in order to live out their days with basic

1:07:50 to 1:11:14( Edit History Discussion )
Speech By: Claire McCaskill