The HAMP Termination Act of 2011

Floor Speech

The House in Committee of the Whole House on the State of the Union had under consideration the bill (H.R. 839) to amend the Emergency Economic Stabilization Act of 2008 to terminate the authority of the Secretary of the Treasury to provide new assistance under the Home Affordable Modification Program, while preserving assistance to homeowners who were already extended an offer to participate in the Program, either on a trial or permanent basis:

* Mr. CARSON of Indiana. Mr. Chair, in the last few years, the United States has faced a devastating economic crisis. As a result of the economic downturn, many homeowners have lost their homes or are at imminent risk of foreclosure. The Obama Administration launched the federal Home Affordable Modification Program (``HAMP'') to stem the escalating tide of home foreclosures with its ruinous effects on families and their communities. HAMP's purpose is to provide eligible homeowners with permanent loan modifications on terms they can afford in order to avoid foreclosure of their homes.

* Although this program is far from perfect, it has helped more than 600,000 families lower their mortgage payments and stay in their homes. H.R. 839, the HAMP Termination Act of 2011, will end this program. I have yet to see any Republican alternative to our housing crisis! There are 3 million foreclosures forecasted this year nationwide and a housing turnaround is not expected for at least three years.

* Missing in the Republicans limited discussion on housing is the impact of the housing crisis on communities of color in the United States. An estimated 17 percent of Latino families and 11 percent of African American families have lost their homes or are at an imminent risk of losing their homes. Meanwhile, Republicans continue to eliminate all government involvement in Fannie Mae and Freddie Mac. While these institutions need to be reformed, they do serve important functions such as making the 30-year, fixed-rate mortgage available to the general public and providing mortgage credit and affordable rental housing for communities of color. If we do not focus seriously on our minority communities, which are disproportionately affected by the economic crisis, the home buying environment for these communities will worsen as the economy recovers. The American dream will cease to exist for many. Fewer mortgages would be available to working-class families in the long run without some government- backed financing.

* Eliminating support to distressed homeowners at this point in time would be disastrous for neighborhoods trying to recover from the foreclosure crisis. Instead, we should focus our efforts on ways to make HAMP a useful, wide-reaching program with meaningful goals, such as pushing lenders and loan servicers to reduce the principal on underwater loans and giving struggling homeowners real relief.

* The latest foreclosure rates in the 7th congressional district of Indiana are higher than the national average. Terminating HAMP and denying critical assistance to struggling Americans is not the answer. HAMP has allowed thousands of Hoosiers to survive unemployment. The program has lowered monthly mortgage payments, and given families the breathing room they needed to keep their home. There is no easy way to repair the deep damage caused by the housing crisis. It will take time and a sustained, comprehensive effort. I will continue to fight on behalf of Hoosiers to keep them in their homes.

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