Senate Proceeding on Dec 14th, 2007 :: 1:18:27 to 1:23:21
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1:11:14 to 1:18:27( Edit History Discussion )
Speech By: Tom Coburn

1:18:14 to 1:18:27( Edit History Discussion )

Tom Coburn: defects that f.h.a. has. so i would -- with that, reserve the balance of my time. and ask for how many time is remaining on the amendment. the presiding offithcer: the senator from oklahoma has 17 minutes

1:18:27 to 1:18:38( Edit History Discussion )

Thomas Carper: remaining. opponents to the coburn amendment have nine minutes remaining. mr. schumer: mr. president, i yield four minutes to the distinguished member of the banking committee, senator carper of delaware. the

1:18:27 to 1:23:21( Edit History Discussion )
Speech By: Thomas Carper

1:18:38 to 1:18:49( Edit History Discussion )

Thomas Carper: presiding officer: the senator from delaware is recognized. mr. carper: i want to thank you for your leadership on this and for bringing us here to this day and to my friend from oklahoma who

1:18:49 to 1:19:02( Edit History Discussion )

Thomas Carper: brought this before us. he raise as good point and it should be addressed and the confrence that is to follow, i hope some of the concerns he raised will be addressed. i don't know if his memo will

1:19:02 to 1:19:16( Edit History Discussion )

Thomas Carper: be approved, but this is -- the reason that we have f.h.a., we had f.h.a. for # zero years. the reason why is that during the great depression, we needed to encourage homeownership in this country.

1:19:16 to 1:19:30( Edit History Discussion )

Thomas Carper: we still do. for many years f.h.a. was the go-to guy, if you will for folks who had maybe marginal credit, didn't have a lot of experience, maybe not a homeowner or first-time homeowner and needed help to

1:19:30 to 1:19:43( Edit History Discussion )

Thomas Carper: get them in a position to qualify for a loan and become a homeowner. there are many -- there are many and valid. today we're -- we've seen, in fact, in recent years, we've seen people who normally would

1:19:43 to 1:19:58( Edit History Discussion )

Thomas Carper: have gone to the f.h.a., first-time home buyers, maybe marginal credit. they went to the f.h.a. for a guarantee for a home loan, in recent years, instead of 15% of the american homes purchased

1:19:58 to 1:20:11( Edit History Discussion )

Thomas Carper: through an f.h.a. mortgage, we see the trend down. today it is roughly 5%. the difference between the 15% and 5%, a lot went to subprime lenders, a lot of them went to vehicles to mortgages that in the

1:20:11 to 1:20:26( Edit History Discussion )

Thomas Carper: long run don'take much sense, they could get a teaser rate the first couple of years, 3%, 4%, and then that rate goes up to 7%, 8%, 10%, they find themselves in a mortgage vehicle they can't get out of

1:20:26 to 1:20:38( Edit History Discussion )

Thomas Carper: because there is no ability to escape from it. we need to get that 5% loans -- home mortgages guaranteed by f.h.a. back up closer to 15%. we're not going to do it with the f.h.a. of the 20th century.

1:20:38 to 1:20:52( Edit History Discussion )

Thomas Carper: we have to bring the f.h.a. into the 21st century. that's what we to with this legislation, we bring it into the air in which we live today. i want to mention a couple of changes that this -- that are

1:20:52 to 1:21:11( Edit History Discussion )

Thomas Carper: made possible with this legislation, and among them, are the loan limits, the f.h.a. loan limits, $6 # 5,000, they're going to go up to roughly $415,000 to reflect the change in the marketplace

1:21:11 to 1:21:22( Edit History Discussion )

Thomas Carper: that we have today. the downpayment for f.h.a. required of home buyers is 3%, if you buy a home for $200,000, it is $6,000, we cut that down. in so the downpayment for a a $200,000 house would be

1:21:22 to 1:21:37( Edit History Discussion )

Thomas Carper: $3,000. and it removes the caps on reversible mortgages from from $150,000 to really -- to really no cap. and we're gng to consider that. we should consider that in conference. i hope with the input

1:21:37 to 1:21:48( Edit History Discussion )

Thomas Carper: from the g.a.o. and, finally, the bill reyates a -- and i think this is important, it speaks to the concerns raised by senator mccaskill. it includes a prepurchase counseling program. she authored legislation,

1:21:48 to 1:21:59( Edit History Discussion )

Thomas Carper: and i'm sure that some will join her in sponsoring that legislation to strengthen that legislation. if you or i are interested in a home mortgage, may call pie through. f.h.a., we want to be sure

1:21:59 to 1:22:16( Edit History Discussion )

Thomas Carper: that those making that loan, that they get the counseling they need and not somebody who is there to set them up and take advantage of them. this is not the only step that we need to take to get through

1:22:16 to 1:22:29( Edit History Discussion )

Thomas Carper: the subprime lending for home mortgages. the paulson freeze announced last week week is a good idea. interest rates would be frozen for five years for folks in these adjustable rate mortgages that are

1:22:29 to 1:22:42( Edit History Discussion )

Thomas Carper: about to raise rates. that is a good first step. this is a good second step. and a good third step is to ban predatory [tises, it is about to pass the house. and this is something that senator schumer

1:22:42 to 1:22:56( Edit History Discussion )

Thomas Carper: and i have interest in. g.a.s. reform. that -- g.s.a. reform. that would include a low -- a low income -- affordable home program too. thanks very much. the presiding officer: the senator's time has

1:22:56 to 1:23:07( Edit History Discussion )

Thomas Carper: expired. who yields time? the senator from new york. mr. sc humer: i yield three minutes to someone who has been a genuine leader on this issue, cosponsor that you and i have on the subprime counseling,

1:23:07 to 1:23:21( Edit History Discussion )

Thomas Carper: the senator from pennsylvania, senator casey. the presiding officer: the senator from pennsylvania is recognized. mr. casey: i want to thank senator schumer for his leadership on these issues, and i

1:23:21 to 1:23:35( Edit History Discussion )

Robert P. Casey, Jr.: rise today like so many this morning to talk about something we referred to by way of rack anymore. so in case -- acronym, f.h.a. is the federal housing administration. we're talking about homeownership.

1:23:21 to 1:26:51( Edit History Discussion )
Speech By: Robert P. Casey, Jr.