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Basically, What You Have Done on the Bill is It Says: Effective on the Date of the Act there are Rescinded

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Date:
Location: Washington, DC

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Mr. LYNCH. Well, let me just say this: The idea here, it's a two-step problem. One, the gentlewoman's bill would seek to eliminate voluntary agreements. Okay, so that's a problem. So we are asking the FHA and the homeowner and the lender and the servicer all to agree that this mortgage should be modified and that the homeowner should be allowed to remain in their home, which is a good thing. But for some reason you don't want any of that, so you are eliminating all four of those programs. That's a problem.

The underlying problem that we have here specific to this language is compounded by the fact that you are eliminating all voluntary agreements, not only the ones that you seek to eliminate in these four voluntary programs.

Mr. FRANK of Massachusetts. I yield at this point to the gentlewoman from Illinois (Mrs. Biggert) to respond.

Mrs. BIGGERT. Thank you. I think what we are doing here is to terminate the mortgage letter which sets up the program and to make sure that there won't be a substantially similar letter.

Mr. FRANK of Massachusetts. Reclaiming my time, because the gentlewoman is simply not responding, we have the same general rhetoric.

The point, as my friend has pointed out, is you were introducing an ambiguity which is substantially similar so that people will be deterred from further innovator activities.

I yield again to my friend from Massachusetts.

Mr. LYNCH. Thank you.

Madam Chair, the funding authorization you have already deleted in section 2. So there is no funds and there is no authorization for FHA to issue a letter in connection with a program that no longer exists. So you have eliminated that.

But when you are going further, section 3 is saying, and we don't want you even; we don't want you issuing a letter or a notice or an order that is substantially similar to the one we just eliminated. That's the problem, that you are taking the ability of the FHA to work out voluntary agreements that, I think on the merits, for the people in your district you would like to see occur, that are in good faith and that are affecting homeowners.

The Acting CHAIR. The time of the gentleman has expired.

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