Emergency Economic Stabilization Act of 2008

Floor Speech

Mr. DAVIS of Illinois. Madam Speaker, I rise in favor of the Senate amendments.

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I rise in support of the bailout proposal before us, and I do not voice my support without some trepidation. However, I feel that the state of our economy is such that we have no logical and prudent choice except to act and to do so now.

Like many people across America, I am not happy about using public money to benefit the robber barons on Wall Street. Therefore, I am pleased to see the high level of independent oversight contained in this package. I know that many people are saying that there is no real help for home owners, for people facing foreclosure, and for those who have already lost their homes and/or their life savings. Therefore, I am pleased to note that this package provides for loan modifications which state concretely that when:

1. The government owns the entire loan.

2. The Secretary of the Treasury and other agencies [FDIC, Federal Reserve, FHFA, GSE's] must:

A. coordinate efforts to gain ownership and control.

B. create a Government-wide plan to maximize loan modifications.

I. GOVERNMENT HAS A PARTIAL INTEREST

The Secretary must:

1. Work with services to modify loans under Hope for Homeowners programs now strengthened to: (a) Allow homeowners to refinance before reset, (b) provide flexibility on loan-to value-ration, and (c) speed up waivers for second mortgage holders.

2. The Secretary must also fund support to services to ensure the ability to do loan modifications, i.e., loans to cover capital advances.

II. GOVERNMENT HAS NO OWNERSHIP INTEREST

1. Will offer loan guarantees to induce mortgage holders to make substantial loan modifications.

2. Applies to loans that may not be eligible for other Government refinancing programs.

III. TENANT PROTECTIONS

1. The Secretary where permissible shall permit bona-fide tenants current in their rent to remain in their homes.

2. The interagency plan for maximizing loan modifications must include protecting Federal, State, and local rental subsidies and ensuring that any loan must take into account the need for operating subsidies.

Madam Speaker, I know that there has been and continues to be a great deal of talk about sweeteners. Well I use Equal, and I am ecstatic to note that in this package, serious consideration is being given to the concept of mental health parity.

If there is a sweetener which would have influenced my position and my vote, this is it. No, this is not a perfect bill and I am sure that some people on Wall Street will benefit; but I do believe that more people on Main Street will feel safer and more secure that their investments are being protected, that their homes and insurance policies will be saved and their children's futures will be more secure. I vote ``yes.''

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