House Proceeding on May 7th, 2009 :: 0:25:40 to 0:37:45
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0:25:39 to 0:26:00( Edit History Discussion )

Pete Sessions: on foreclosures and defaults. madam speaker, i reserve the balance of my time. th gentleman from california reserves his time. the gentleman from texas is recognized. mr. session: thank you very much. good morning, madam speaker. madam speaker, i rise today in opposition to this rule and to the underlying legislation. this structured rule does not call for the open, honest debate

0:25:40 to 0:37:45( Edit History Discussion )
Speech By: Pete Sessions

0:26:01 to 0:26:23( Edit History Discussion )

Pete Sessions: that has been promised by my democrat colleagues time and time again. yet here we are again discussing the mortgage reform bill for the second day. it is essential to provide for more transparency and accountability in the lending process, but there is also a laundry list of important issues that face this congress.

0:26:24 to 0:26:44( Edit History Discussion )

Pete Sessions: and all this week we will have but one bill on the floor of the house of representatives to debate. i think that's unfai to the american taxpayer when there is much work to be done. today not only will we be discussing the flawed underlying legislation which is already addressed in federal statute, as we spoke about yesterday being

0:26:45 to 0:27:05( Edit History Discussion )

Pete Sessions: on the floor, that the federal reserve has already issued the rules and regulations as a result of feedback from industry last year, but what we are here to do is to try and redo that, to put the majority's mark on that legislation, which already takes care of the problem.

0:27:06 to 0:27:27( Edit History Discussion )

Pete Sessions: but this legislation that we are going to handle again today limits choice, reduces credit, and increases cost to consumers and taxpayers at a time when the effort should be about making home mortgages more reliable,

0:27:28 to 0:27:50( Edit History Discussion )

Pete Sessions: least cost conscious, and sure that consumers would be able to have an opportunity to have a chance to have a home. but what we are going to do is by allowing a patchwork of state laws to confuse the system, we are going to now create qualified mortgages which require lenders to hold 5% credit and creates $140 million

0:27:51 to 0:28:12( Edit History Discussion )

Pete Sessions: slush fund for trial lawyers. so what we are going to do is limit choice, reduce credit, and increase cost. and make sure now there's a slush fund for trial lawyers to sue the same companies that we were trying to encourage to go make so people could have money. madam speaker, you'll also hear

0:28:13 to 0:28:35( Edit History Discussion )

Pete Sessions: about the amendments that democrat majority has made in order and failed to make in order today no matter how substantive those amendments were. we have heard the number of amendments that were made in order. my good friend knows that there were about 20 democrat amendments that were put into the manager's amendment.

0:28:36 to 0:28:57( Edit History Discussion )

Pete Sessions: so the eight to five ratio is a little bit deceptive. it should be eight plus 20 is 28 versus five republican amendments. . i offered two amendments in the rules committee last night and both were struck down. one was to limit trial lawyers

0:28:58 to 0:29:18( Edit History Discussion )

Pete Sessions: access to taxpayer funds and one was to assure that any agency that receives money from the federal government is funds they receive. madam speaker, at the end of 20, the board of governors of the federal reserve undertook

0:29:19 to 0:29:42( Edit History Discussion )

Pete Sessions: careful review of the abuses in the mortgage process system and they took public comments, held public hearings across the country. and after careful deliberations they finalized new comprehensive mortgage rules. these rules are going to take effect five months from now in october. so not only are we spending all of one week on one piece of

0:29:43 to 0:30:05( Edit History Discussion )

Pete Sessions: legislation but the necessary regulations already exist in federal statutes and companies all across this country are already aiming at implementing those rules and regulations being ready for october. this legislation fails to address the uneven patchwork of state mortgage lending laws and leaves lenders and consumers

0:30:06 to 0:30:29( Edit History Discussion )

Pete Sessions: with unfair and confoosing laws where the cost will ultimately be borne by customers. while this is trying to establish a new class of loans which will have further restrictions in this bill, this will ultimately limit consumer

0:30:30 to 0:30:50( Edit History Discussion )

Pete Sessions: choice on mortgages and unduly burden the mortgage industry. essentially, excluding numerous safe and affordable mortgage products that serve and have been good to borrowers as well. madam speaker, the democrats are here today to say that they are on the side of the consumer and the borrower eveif it

0:30:51 to 0:31:12( Edit History Discussion )

Pete Sessions: limits choices and raises interest rates for every single consumer that choes to use this avenue to buy a home. mr. michael menowitz in committee hearings on april 23, 2009, stated and i quote, lots of this legislation simply

0:31:13 to 0:31:33( Edit History Discussion )

Pete Sessions: increases our cost of dog business rather than helping us do a better job with our customers. another regulation that will narrow choice, lessen credit and increase costs for borrowers is the lend risk retention provisions requiring

0:31:34 to 0:31:54( Edit History Discussion )

Pete Sessions: lenders to retain at least 5% of the credit risk presented by all loans that are deemed -- not deemed qualified mortgage. while i do believe that it is important to have some ownership in your investments, these far-reaching requirements will make it impossible for many lenders to operate

0:31:55 to 0:32:15( Edit History Discussion )

Pete Sessions: especially sma and local lenders. with the current economic cris and with all the efforts to inject capital into the financial services sector, why would we want to limit the use of capital and threaten to further impair banks' abilities to lend. madam speaker, this is not a solution for the ailing

0:32:16 to 0:32:37( Edit History Discussion )

Pete Sessions: economy. in addition, this legislation directs h.u.d. to establish a brand new $140 million slush fund for legal organizations to provide a ll range of foreclosure-related services. madam speaker, my friends on the other side of the aisle actually take these steps simply to fund trial lawyers in

0:32:38 to 0:32:58( Edit History Discussion )

Pete Sessions: this legislation. if this doesn't force a flight litigation i really don't know what will. and margo sanders of the national consumer law center, a consumer advocate organization, said on april 23, 2009, in the financial services hearing, and

0:32:59 to 0:33:19( Edit History Discussion )

Pete Sessions: i quote, we have tried to propose repeatedly that you draft a simple bill that creates market-based incentives for enforcement rather than litigation opportunities. and i might say which is full in this bill. in other words, what we're doing is looking for paying

0:33:20 to 0:33:40( Edit History Discussion )

Pete Sessions: lawyers to come and do what we should do here in this body with thoughtful, honest, straightforward legislation. which is why i offered an amendment in the rules committee last night and of course was defead on a party line vote, and i ask unanimous consent to include this amendment in the congressional record. the speaker pro tempore:

0:33:41 to 0:34:03( Edit History Discussion )

Pete Sessions: without objection, so ordered. mr. sessions: this amendment would limit attorneys' fees for filing a right of action created by this legislation to ensure the borrower or victim of predatory lending, not trial lawyers, are fairly compensated for their has -- tls ley. we tried to protect taxpayers

0:34:04 to 0:34:25( Edit History Discussion )

Pete Sessions: from executives from getting bonuses from tarp money. yet here we are today letting trial lawyers get compensation from the same banks that receive tarp funding. i stand here for the taxpayers, not the special interest groups, like my friends obviously on the other side. madam speaker, i offered a second amendment in the rules

0:34:26 to 0:34:46( Edit History Discussion )

Pete Sessions: committee yesterday, and i ask unanimous consent to iert this amendment into the congressional record. the speaker pro tempore: without objection, so ordered. mr. sessions: thank you, madam speaker. this amendment would have ensured that acorn and any organization in affiliate -- affiliated with acn would need to provide more transparency with the federal funds they received through

0:34:47 to 0:35:07( Edit History Discussion )

Pete Sessions: this legislation and all housing and urban development grants. the amendment would have required them to submit a report on what they spent those taxpayer dlars on. and if they were used improperly it would -- they would be forced to repay the funds and would be ban from any future grants in the future.

0:35:08 to 0:35:29( Edit History Discussion )

Pete Sessions: yet, my friends on the other side of the aisle once again chose to side with special interest instead of the american taxpayer and the amendment failed. after a conversation with chairman frank and his statement to the rules committee tuesday afternoon, my impression was that the chairman supported transparency and would be inclined to

0:35:30 to 0:35:50( Edit History Discussion )

Pete Sessions: support and include any disclosure amendments in the manager's amendment. unfortunately, since my amendment was too specific it was not included. even though it simply ked for the same transparency with government funds that congress has asked of our financial services to provide. even with the recent news reports of two senior employees

0:35:51 to 0:36:11( Edit History Discussion )

Pete Sessions: of acorn in nevada that were charged with -- in 26 counts of voter fraud, my democratic colleagues still voted against my amendments. madam speaker, i have an associated press article dated may 5, 2009, of this week which i ask unanimous consent to insert into the congressional record. the speaker pro tempore:

0:36:12 to 0:36:33( Edit History Discussion )

Pete Sessions: without objection, so ordered. mr. sessions: this article states that acorn has been investigated by dozens of states regarding fake voter registration cards. nevada is the first state to bring charges against acorn for illegally paying canvassers. nevada's attorney general states that not only was acorn

0:36:34 to 0:36:54( Edit History Discussion )

Pete Sessions: nevada field director intimately involved but the time sheets indicate that acorn corporate officers were aware of the bonus programs and failed to stop it. since the beginning of congress, it has been a congressional priority to provide for the appropriate accountability and transparency

0:36:55 to 0:37:17( Edit History Discussion )

Pete Sessions: in all aspects of the private markets, but my friends in the democrat majority refuse the same accountability for acorn. madam speaker, i strongly believe that the american public deserves more and better from elected officials. this legislation falls extremely short of providing

0:37:18 to 0:37:39( Edit History Discussion )

Pete Sessions: any positive outcomes to our current economic problems. in fact, i believe that this will only hurt future borrowers in finding a product that fits their needs. americans pride them self on the availability of a free market and choice and yet today congress will pass legislation that limits choice, raises

0:37:40 to 0:37:45( Edit History Discussion )

Pete Sessions: interest rates and increases cost for all americans. while endorsing special interests and rewarding trial