Hope for homeowners needs to be modified

By Kayleigh Harvey - Talk Radio News Service

The House Financial Services Committee met today for the first time under the one hundred and eleventh Congress to discuss "Promoting Bank Liquidity and Lending Through Deposit Insurance, Hope for Homeowners, and other Enhancements". 

Testifying before the committee members were John Bovenzi from the Federal Deposit Insurance Corporation and Meg Burns from the Federal Housing Administration. 

Committee Chairman Barney Frank (D-MA), opened the meeting saying, "Hope for homeowners came out of this committee and we passed it last year, we didn't do it well. I acknowledge that, and it has to be corrected."

The discussion focused on proposals to modify the current 'Hope for Homeowners' Program.

John Bovenzi in his testimony to the committee said that, "Liquidity is a key component in returning the economy to a condition where it can support normal economic activity and future economic growth"

"Deposits, especially FDIC ensured deposits are a key source of bank liquidity. The FDIC has implemented the temporary liquidity guarantee program to help stabilize the funding structure of financial institutions and expand their funding base to support the extension of new credit", he stated. The FDIC is trying to increase their line of credit to potential home buyers from $30 billion to $100 billion. 

Congresswoman Judy Biggert (R-IL) said: "From home builders we're hearing that they have homes and condos to sell, people arrive, but because of the severe restrictions that have been put on the loan, make it so that the buyers walk-away".

Meg Burns said: "All of us at HUD welcome and applaud your decision to make modifications to the 'Hope for Homeowners' program. As you are well aware the initial program data clearly indicate that changes are not only appropriate but necessary. Furthermore, changes are needed as quickly as possible. To date FHA has ensured no loans under the program, lenders have taken 451 applications and 25 loans have closed".

February 3, 2009

Congressman's fury at economic crisis

Congressman Michael Capuano (D-MA) expresses his concerns to a representative from the FDIC about the current economic situation at a House Financial Services Committee hearing to discuss the "Hope for Homeowners" program. February 3, 2009.

Climate Crisis: Al Gore says that the time for action is now.

“We need a transformation in public policy thinking to embrace the reality of what science is telling us, accept its implications, and then act in accordance with the full scope and urgency of the problem,” said senator John F. Kerry at the Senate Foreign Relations Committee today. The committee met to hear testimony from Al Gore concerning what America should be doing to address the climate crisis.

Kerry said, “Some may argue that we cannot afford to address this issue in the midst of an economic crisis. They have it fundamentally wrong. This is a moment of enormous opportunity for new technology, new jobs, and the greening of our economy. We can’t afford not to act.” Senator Kerry stressed the importance of America taking a stance on caring for the environment with a new administration that will finally be supportive of these efforts.

Former Vice-President Al Gore said that “We have arrived at a moment of decision. Our home-Earth- is in grave danger. What is at risk of being destroyed is not the planet itself, of course, but the conditions that have made it hospitable for human beings.” Gore expressed concern that people seem to think that the planet and our way of life has to be a choice, when in fact, “solutions to the climate crisis are the very same solutions that will address our economic and national security crisis as well.”

by Suzia van Swol, University of New Mexico-Talk Radio News Service

Hoyer criticizes Republicans at pen and pad session

House Majority Leader Steny H. Hoyer (D-Md.) stated that he testified today for full voting rights status for the District of Columbia and said they are going to ask the Supreme Court to fast track it or get it signed by President Obama or ask if it needs to be a consitutional amendment.

Leader Hoyer also had comments about the American Recovery and Reinvestment Act of 2009. He said that some have criticized the bill as not enough but twice as much as discretionary spending last year. Asked if it was large enough, Leader Hoyer said "Not sure, you can hear many different opinions."

There will be no earmarks on this bill and when asked about bipartisanship, Leader Hoyer said "Being bi-partisan does not mean lying on the floor and doing whatever they want. The Republicans have taken a political stance against the bill."

Hoyer noted that despite the fact that President Obama was meeting with the Republicans they have told their members to vote against it. He also stated that the Republicans have run up our debt to a weak economy.

He concluded the pad and pen noting that with the bill would come good things. It would bring an increase in science & technology research, pell grants and school modernization. They want to make IDA money more transparent to the American public and offer COBRA subsidies.

Speaker Pelosi says- No recess until the economic bill is done.

“The issues like food stamps, and unemployment insurance, which affect so many people in the states and are necessary at this time when funds are short, but the economy is down, actually have the most stimulative affect on the economy,” said Speaker Nancy Pelosi during a conference call with Governors Ed Rendell (D-PA) and Jim Douglas (R-VT). The house will begin debating the 825 billion dollar economic recovery bill today, 2/3 of which will go towards job recovery while the rest is proposed to be used for tax cuts. Speaker Pelosi said that, “Tax cuts where we have them, to the middle class, we think will give us our biggest return.”

The aim of the new bill is to help the states as quickly as possible. “The best news for the local and county governments, because of what Speaker Pelosi and the President are doing, assuming it gets passed, is that the county governments and the city governments will be in much better shape in terms of the money that they get from the state,” said Governor Rendell.

“Does it create jobs, does it turn the economy around, does it lead to long term stabilization of the economy, does it do so in an apparent way and with great accountability to the American people,” said Speaker Pelosi. This bill is the first legislative step towards turning the economy around, and if it is not passed by the President’s day recess, Pelosi said that there will be no recess.

by Suzia van Swol, University of New Mexico-Talk Radio News Service