Washington, D.C. – Dean of the United States House of Representatives, John D. Dingell (D-MI15) issued the following statement opposing H.R. 839:
“Mr. Speaker, I rise in opposition to H.R. 839, which will terminate a key foreclosure prevention program for struggling, middle-class homeowners.
“In the past two weeks, House Republicans have voted to terminate two important federal responses to the mortgage crisis that continues to threaten American economic growth. They voted to terminate the Federal Housing Administration (FHA) Refinance Program, a promising foreclosure prevention program directed toward responsible homeowners. They also voted to terminate the Neighborhood Stabilization Program, which helps stabilize communities fraught with massive foreclosure and home abandonment. Mr. Speaker, with about 13.7 million Americans struggling with unemployment, I urge my colleagues to focus on creating jobs, not on terminating programs. This is a time to be constructive, not destructive.
“Today, we are considering stripping away critical assistance to homeowners who are working in good faith to keep their homes. H.R. 839 would terminate the Home Affordable Modification Program (HAMP), which helps homeowners at risk of losing their home by lowering their monthly payments to affordable levels. The program was intended to help three or four million homeowners avoid foreclosure through permanent, realistic loan modifications. Over 600,000 people have already received permanent HAMP loan modifications, and around 30,000 more receive permanent HAMP loan modifications each month. If H.R. 839 were to pass, it would deny modifications to more than a half million homeowners at risk of foreclosure. Mr. Speaker, in February, one in every 324 households in my home state of Michigan received a foreclosure filing. The last thing my constituents need is fewer alternatives to foreclosure.
“We can all agree that HAMP has not given our housing market the massive jumpstart it was intended to give. However, you don’t throw out the car when it gets a flat tire. You fix the tire. That is why I, along with other members, recently sent a letter to the U.S. Treasury Department urging the agency to take a few concrete steps that will improve the efficiency of HAMP and will dramatically increase the number of homeowners who could benefit from the program. If my Republican colleagues feel HAMP has not benefited enough homeowners, they should propose changes to the program. Don’t throw out the car. Fix the tire.
“Mr. Speaker, I strongly urge my colleagues to vote against H.R. 839 and yield back the balance of my time.”
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