Aiding Those Facing Foreclosure Act of 2010

Floor Speech

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Ms. KAPTUR. Thank you very much to my dear colleague, Congressman CAPUANO of Massachusetts, for yielding me this time in support of moving today H.R. 5510, the Aiding Those Facing Foreclosure Act, which merely allows technical clarification language to existing legislation. No authorization of funding or any expansion of existing funding is included in this bill.

I would like to thank my colleagues on both sides of the aisle for their support and for bringing this forth today. In particular, I would like to thank Chairman FRANK and Congressman STEVE LATOURETTE for their ongoing efforts on behalf of homeowners facing foreclosure.

Ohio is among those States labeled as the hardest hit in our Nation by the foreclosure and economic crisis, along with 18 other States. These states receive what is called ``hardest hit'' assistance funds.

Ohio, among other States, wants the discretion to use a small amount of its existing funds under existing authorities to support legal advice through not-for-profit legal organizations to individual families facing foreclosure. However, Treasury interpreted that existing law didn't allow that. That is why we are here today--to clarify that, in fact, citizens of our Nation who are single-family homeowners do have the right to proper legal advice in such critical mortgage workout proceedings that affect their equity, that affect their family's home and their future.

Millions of people have faced foreclosure across our Nation. Far too many are losing their homes without proper, necessary legal representation. Many even have no idea that they have legal standing in such property proceedings. At such a critical and emotional moment in a family's life, legal advice can help a family find the outcome that works best for them in a foreclosure proceeding. In today's very complex mortgage proceedings, it becomes daunting for affected homeowners to gain the legal advice necessary to navigate the increasingly complex world of distant banks and courts, which often are much more easily navigated by the mortgagor. And certainly the mortgagee should have similar legal rights as well.

We appreciate the fact that the Treasury is sending a letter of support in furtherance of our efforts. Thus, I introduce this legislation as a legislative fix, H.R. 5510. For those States already receiving hardest hit funds, H.R. 5510 increases the State's ability to serve only single-family owner-occupied units that are facing default, delinquency, foreclosure, deed in lieu, or short sale by permitting, if the State so chooses, to use hardest hit funds to support legal services offered by not-for-profit legal aid organizations.

In sum, the bill does not require States to use funds to support legal aid or services. So there's no requirement. This language is only permissive. The bill does not permit funds to be used for class action lawsuits. It only applies to single-family owner-occupied units. The bill does not permit any organizations like ACORN or others that are not not-for-profit legal assistance groups to receive funding. Further, the bill does not take money away from any State that is already administering its funds. And the bill actually will help relieve pressure on the States that are not hardest hit as other funding becomes available in related housing programs in the future.

So, let me be clear. There's no new money involved here. This is only giving the hardest hit States a new tool, if they so choose to use it, to fight foreclosures in their States and give proper legal standing to all parties involved. Nothing could be more important than allowing families facing foreclosure to be afforded proper legal assistance to rework their loan where that is possible.

Please support passage of H.R. 5510, the Aiding Those Facing Foreclosure Act.

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