H.R. 1424, The Emergency Economic Stabilization Act of 2008
October 3, 2008
Rep. Maxine Waters [D-CA]: First I would like to thank Chairman Frank for the extraordinary work he has put into making sure we address this financial crisis, and do it in a way that will certainly protect our homeowners who are at risk.
There are a number of Members who have been worried about whether or not this bill is going to protect our citizens on Main Street, as they refer to it. I worked with Chairman Frank and others on the modifying of loans portions of this bill. We have three ways by which these loans can be modified. People forget that when we buy up this toxic paper, when we buy up these nonperforming loans, we are in charge. Not only can we write down the principal, we can write down the interest. We can do the kind of loan modification that we have been urging the Hope Now Alliance to get done.
In addition to that, we are coordinating the work of all of the agencies that own paper, whether it is the FDIC or either of the GSEs, Fannie or Freddie. Remember, we own them now. We will be able to coordinate and set some standards and be able to do again the kind of loan modification that takes into consideration whatever the circumstances are of the particular homeowner. And in some cases, we will provide a loan guarantee. When we go in and ask some of the institutions to do loan modifications on entire packages, those that fall out and they cannot do the loan modifications on that work very well, we will provide the loan guarantees for them to do so.
So for anybody who says there is nothing in this for homeowners, they are incorrect. Read the bill. The facts are there. This is the strongest part of this legislation, protecting homeowners and doing the kind of loan modifications that will keep people in their homes who have these adjustable rate mortgages even before they reset.
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Contact: Michael Levin
202-225-2201
