```

[House Report 112-26]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     112-26

======================================================================

 
           EMERGENCY MORTGAGE RELIEF PROGRAM TERMINATION ACT

                                _______
                                

 March 7, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

         Mr. Bachus, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 836]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 836) to rescind the unobligated funding for the 
Emergency Mortgage Relief Program and to terminate the program, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Emergency Mortgage Relief Program 
Termination Act''.

SEC. 2. RESCISSION OF FUNDING FOR EMERGENCY MORTGAGE RELIEF PROGRAM.

  Effective on the date of the enactment of this Act, there are 
rescinded and permanently canceled all unobligated balances remaining 
available as of such date of enactment of the amounts made available by 
section 1496(a) of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Public Law 111-203; 124 Stat. 2207; 12 U.S.C. 2706 
note).

SEC. 3. TERMINATION OF EMERGENCY MORTGAGE RELIEF PROGRAM.

  (a) Repeal.--Title I of the Emergency Housing Act of 1975 (12 U.S.C. 
2701 et seq.), as amended by section 1496(b) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, is hereby repealed.
  (b) Treatment of Remaining Funds.--Notwithstanding the repeal under 
subsection (a) of this section, any amounts made available under the 
provision specified in section 2 of this Act and obligated before the 
date of the enactment of this Act shall continue to be governed by the 
provisions of law specified in subsection (a) of this section, as in 
effect immediately before such repeal.
  (c) Termination.--Upon the completion of outlays to liquidate all 
amounts referred to in subsection (b) of this section and the 
completion of all activities with respect to such amounts under the 
provisions of law specified in subsection (a) of this section, the 
Secretary of Housing and Urban Development shall terminate the 
Emergency Mortgage Relief Program authorized under the provisions 
specified in subsection (a).
  (d) Study of Use of Program by Members of the Armed Forces, Veterans, 
and Gold Star Recipients.--
          (1) Study.--The Secretary of Housing and Urban Development 
        shall conduct a study to determine the extent of usage of the 
        Emergency Mortgage Relief Program authorized under the 
        provisions specified in subsection (a) by, and the impact of 
        such program on, covered homeowners.
          (2) Report.--Not later than the expiration of the 90-day 
        period beginning on the date of the enactment of this Act, the 
        Secretary shall submit to the Congress a report setting forth 
        the results of the study under paragraph (1) and identifying 
        best practices, with respect to covered homeowners, that could 
        be applied to the Emergency Mortgage Relief Program.
          (3) Covered homeowner.--For purposes of this subsection, the 
        term ``covered homeowner'' means a homeowner who is--
                  (A) a member of the Armed Forces of the United States 
                on active duty or the spouse or parent of such a 
                member;
                  (B) a veteran, as such term is defined in section 101 
                of title 38, United States Code; or
                  (C) eligible to receive a Gold Star lapel pin under 
                section 1126 of title 10, United States Code, as a 
                widow, parent, or next of kin of a member of the Armed 
                Forces person who died in a manner described in 
                subsection (a) of such section.

                          Purpose and Summary

    H.R. 836 would rescind all unobligated balances made 
available for the Emergency Mortgage Relief Program under 
section 1496(a) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, which was signed into law on July 21, 
2010, and terminate the program. The bill also calls for a 
study by the Department of Housing and Urban Development (HUD) 
to identify best practices for how existing mortgage assistance 
programs can be applied to veterans, active duty military 
personnel, and their relatives.

                  Background and Need for Legislation

    H.R. 836 was introduced by Congressman Jeb Hensarling and 
Chairman Bachus to terminate the Emergency Mortgage Relief 
Program and rescind any unobligated balances remaining under 
the program. The Emergency Mortgage Relief Program was created 
under Section 1496 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (P.L. 111-203). The Dodd-Frank Act 
established a $1 billion Emergency Homeowner Relief Fund, to be 
used to fund the Emergency Mortgage Relief Program, which 
provides loans or credit advances to borrowers who cannot pay 
their mortgages because of unemployment or reduction in income. 
Administered by HUD, emergency mortgage relief payments may be 
provided for up to twelve months and extended once for up to 
twelve additional months.
    Although as of February 2011, no funds have been furnished 
to homeowners under the program, questions remain about the 
cost, effectiveness, and benefits of the program. Under the 
Administration's own projections for the program in its Fiscal 
Year 2012 Budget submission, the program's weighted average 
subsidy rate is 97.92, meaning that nearly 98 cents of every 
dollar loaned under the program is not expected to be repaid. 
Also, several concerns have been raised about the effectiveness 
of the program based on the underwriting of loans to homeowners 
who, by definition, lack the ability to pay because they are 
unemployed. Further concerns have been raised about the benefit 
to participants of a program that increases the debt of 
borrowers already struggling to meet their current obligations. 
Given the country's current fiscal situation, a program whose 
benefits are speculative at best but where substantial taxpayer 
losses are certain does not warrant funding.

                                Hearing

    The Subcommittee on Insurance, Housing, and Community 
Opportunity held a hearing on March 2, 2011 entitled 
``Legislative Proposals to End Taxpayer Funding for Ineffective 
Foreclosure Mitigation Programs.'' The following witnesses 
testified:
           The Honorable Neil M. Barofsky, Special 
        Inspector General for the Troubled Asset Relief Program
           The Honorable David Stevens, Assistant 
        Secretary for Housing and Commissioner of the Federal 
        Housing Administration, Department of Housing and Urban 
        Development
           The Honorable Mercedes M. Marquez, Assistant 
        Secretary, Community Planning and Development, 
        Department of Housing and Urban Development
           Matthew J. Scire, Director, Financial 
        Markets and Community Investment, U.S. Government 
        Accountability Office
           Katie Jones, Analyst in Housing Policy, 
        Congressional Research Service, Library of Congress

                        Committee Consideration

    The Committee on Financial Services met in open session on 
March 3, 2011 and ordered H.R. 836, the Emergency Mortgage 
Relief Program Termination Act, as amended, favorably reported 
to the House by a record vote of 33 yeas and 22 nays (Record 
vote no. FC-8).

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Chairman Bachus to report the bill, as amended, to 
the House with a favorable recommendation was agreed to by a 
record vote of 33 yeas and 22 nays (Record vote no. FC-8). The 
names of Members voting for and against follow:

                                              RECORD VOTE NO. FC-8
----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Bachus.....................        X   ........  .........  Mr. Frank (MA)...  ........        X   .........
Mr. Hensarling.................        X   ........  .........  Ms. Waters.......  ........        X   .........
Mr. King (NY)..................        X   ........  .........  Mrs. Maloney.....  ........        X   .........
Mr. Royce......................        X   ........  .........  Mr. Gutierrez....  ........  ........  .........
Mr. Lucas......................        X   ........  .........  Ms. Velazquez....  ........        X   .........
Mr. Paul.......................        X   ........  .........  Mr. Watt.........  ........        X   .........
Mr. Manzullo...................        X   ........  .........  Mr. Ackerman.....  ........        X   .........
Mr. Jones......................        X   ........  .........  Mr. Sherman......  ........        X   .........
Mrs. Biggert...................        X   ........  .........  Mr. Meeks........  ........  ........  .........
Mr. Gary G. Miller (CA)........  ........  ........  .........  Mr. Capuano......  ........        X   .........
Mrs. Capito....................        X   ........  .........  Mr. Hinojosa.....  ........  ........  .........
Mr. Garrett....................        X   ........  .........  Mr. Clay.........  ........        X   .........
Mr. Neugebauer.................        X   ........  .........  Mrs. McCarthy      ........        X   .........
                                                                 (NY).
Mr. McHenry....................        X   ........  .........  Mr. Baca.........  ........  ........  .........
Mr. Campbell...................        X   ........  .........  Mr. Lynch........  ........        X   .........
Mrs. Bachmann..................        X   ........  .........  Mr. Miller (NC)..  ........        X   .........
Mr. Marchant...................        X   ........  .........  Mr. David Scott    ........        X   .........
                                                                 (GA).
Mr. McCotter...................        X   ........  .........  Mr. Al Green (TX)  ........        X   .........
Mr. McCarthy (CA)..............        X   ........  .........  Mr. Cleaver......  ........        X   .........
Mr. Pearce.....................        X   ........  .........  Ms. Moore........  ........        X   .........
Mr. Posey......................        X   ........  .........  Mr. Ellison......  ........        X   .........
Mr. Fitzpatrick................        X   ........  .........  Mr. Perlmutter...  ........        X   .........
Mr. Westmoreland...............        X   ........  .........  Mr. Donnelly.....  ........  ........  .........
Mr. Luetkemeyer................        X   ........  .........  Mr. Carson.......  ........        X   .........
Mr. Huizenga...................        X   ........  .........  Mr. Himes........  ........        X   .........
Mr. Duffy......................        X   ........  .........  Mr. Peters.......  ........        X   .........
Ms. Hayworth...................        X   ........  .........  Mr. Carney.......  ........        X   .........
Mr. Renacci....................        X   ........  .........
Mr. Hurt.......................        X   ........  .........
Mr. Dold.......................        X   ........  .........
Mr. Schweikert.................        X   ........  .........
Mr. Grimm......................        X   ........  .........
Mr. Canseco....................        X   ........  .........
Mr. Stivers....................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

    During consideration of H.R. 836, the following amendments 
were considered:
          1. An amendment offered by Mr. Grimm, no. 1a, 
        requiring HUD to study the usage of the Emergency 
        Mortgage Relief Program on members of the armed forces, 
        veterans, and gold star recipients, to the amendment 
        offered by Mr. Green, no. 1, requiring HUD, in 
        consultation with other agencies, to determine an 
        amount from the unobligated balances to provide 
        assistance to members of the armed forces, veterans, 
        and gold star recipients, was agreed to by a record 
        vote of 33 yeas and 22 nays (Record vote no. 7).

                                              RECORD VOTE NO. FC-7
----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Bachus.....................        X   ........  .........  Mr. Frank (MA)...  ........        X   .........
Mr. Hensarling.................        X   ........  .........  Ms. Waters.......  ........        X   .........
Mr. King (NY)..................        X   ........  .........  Mrs. Maloney.....  ........        X   .........
Mr. Royce......................        X   ........  .........  Mr. Gutierrez....  ........  ........  .........
Mr. Lucas......................        X   ........  .........  Ms. Velazquez....  ........        X   .........
Mr. Paul.......................        X   ........  .........  Mr. Watt.........  ........        X   .........
Mr. Manzullo...................        X   ........  .........  Mr. Ackerman.....  ........        X   .........
Mr. Jones......................        X   ........  .........  Mr. Sherman......  ........        X   .........
Mrs. Biggert...................        X   ........  .........  Mr. Meeks........  ........  ........  .........
Mr. Gary G. Miller (CA)........  ........  ........  .........  Mr. Capuano......  ........        X   .........
Mrs. Capito....................        X   ........  .........  Mr. Hinojosa.....  ........  ........  .........
Mr. Garrett....................        X   ........  .........  Mr. Clay.........  ........        X   .........
Mr. Neugebauer.................        X   ........  .........  Mrs. McCarthy      ........        X   .........
                                                                 (NY).
Mr. McHenry....................        X   ........  .........  Mr. Baca.........  ........  ........  .........
Mr. Campbell...................        X   ........  .........  Mr. Lynch........  ........        X   .........
Mrs. Bachmann..................        X   ........  .........  Mr. Miller (NC)..  ........        X   .........
Mr. Marchant...................        X   ........  .........  Mr. David Scott    ........        X   .........
                                                                 (GA).
Mr. McCotter...................        X   ........  .........  Mr. Al Green (TX)  ........        X   .........
Mr. McCarthy (CA)..............        X   ........  .........  Mr. Cleaver......  ........        X   .........
Mr. Pearce.....................        X   ........  .........  Ms. Moore........  ........        X   .........
Mr. Posey......................        X   ........  .........  Mr. Ellison......  ........        X   .........
Mr. Fitzpatrick................        X   ........  .........  Mr. Perlmutter...  ........        X   .........
Mr. Westmoreland...............        X   ........  .........  Mr. Donnelly.....  ........  ........  .........
Mr. Luetkemeyer................        X   ........  .........  Mr. Carson.......  ........        X   .........
Mr. Huizenga...................        X   ........  .........  Mr. Himes........  ........        X   .........
Mr. Duffy......................        X   ........  .........  Mr. Peters.......  ........        X   .........
Ms. Hayworth...................        X   ........  .........  Mr. Carney.......  ........        X   .........
Mr. Renacci....................        X   ........  .........
Mr. Hurt.......................        X   ........  .........
Mr. Dold.......................        X   ........  .........
Mr. Schweikert.................        X   ........  .........
Mr. Grimm......................        X   ........  .........
Mr. Canseco....................        X   ........  .........
Mr. Stivers....................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

          2. An amendment offered by Mr. Frank, no. 2, 
        requiring all but $300 million of unobligated balances 
        to be rescinded, was not agreed to by a record vote of 
        22 yeas and 33 nays (Record vote no. 6).

                                              RECORD VOTE NO. FC-6
----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Bachus.....................  ........        X   .........  Mr. Frank (MA)...        X   ........  .........
Mr. Hensarling.................  ........        X   .........  Ms. Waters.......        X   ........  .........
Mr. King (NY)..................  ........        X   .........  Mrs. Maloney.....        X   ........  .........
Mr. Royce......................  ........        X   .........  Mr. Gutierrez....  ........  ........  .........
Mr. Lucas......................  ........        X   .........  Ms. Velazquez....        X   ........  .........
Mr. Paul.......................  ........        X   .........  Mr. Watt.........        X   ........  .........
Mr. Manzullo...................  ........        X   .........  Mr. Ackerman.....        X   ........  .........
Mr. Jones......................  ........        X   .........  Mr. Sherman......        X   ........  .........
Mrs. Biggert...................  ........        X   .........  Mr. Meeks........  ........  ........  .........
Mr. Gary G. Miller (CA)........  ........  ........  .........  Mr. Capuano......        X   ........  .........
Mrs. Capito....................  ........        X   .........  Mr. Hinojosa.....  ........  ........  .........
Mr. Garrett....................  ........        X   .........  Mr. Clay.........        X   ........  .........
Mr. Neugebauer.................  ........        X   .........  Mrs. McCarthy            X   ........  .........
                                                                 (NY).
Mr. McHenry....................  ........        X   .........  Mr. Baca.........  ........  ........  .........
Mr. Campbell...................  ........        X   .........  Mr. Lynch........        X   ........  .........
Mrs. Bachmann..................  ........        X   .........  Mr. Miller (NC)..        X   ........  .........
Mr. Marchant...................  ........        X   .........  Mr. David Scott          X   ........  .........
                                                                 (GA).
Mr. McCotter...................  ........        X   .........  Mr. Al Green (TX)        X   ........  .........
Mr. McCarthy (CA)..............  ........        X   .........  Mr. Cleaver......        X   ........  .........
Mr. Pearce.....................  ........        X   .........  Ms. Moore........        X   ........  .........
Mr. Posey......................  ........        X   .........  Mr. Ellison......        X   ........  .........
Mr. Fitzpatrick................  ........        X   .........  Mr. Perlmutter...        X   ........  .........
Mr. Westmoreland...............  ........        X   .........  Mr. Donnelly.....  ........  ........  .........
Mr. Luetkemeyer................  ........        X   .........  Mr. Carson.......        X   ........  .........
Mr. Huizenga...................  ........        X   .........  Mr. Himes........        X   ........  .........
Mr. Duffy......................  ........        X   .........  Mr. Peters.......        X   ........  .........
Ms. Hayworth...................  ........        X   .........  Mr. Carney.......        X   ........  .........
Mr. Renacci....................  ........        X   .........
Mr. Hurt.......................  ........        X   .........
Mr. Dold.......................  ........        X   .........
Mr. Schweikert.................  ........        X   .........
Mr. Grimm......................  ........        X   .........
Mr. Canseco....................  ........        X   .........
Mr. Stivers....................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

          3.  A motion to move the previous question on the 
        Frank amendment offered by Chairman Bachus was agreed 
        to by a record vote of 33 yeas and 18 nays (Record vote 
        no. 5).

                                              RECORD VOTE NO. FC-5
----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Bachus.....................        X   ........  .........  Mr. Frank (MA)...  ........        X   .........
Mr. Hensarling.................        X   ........  .........  Ms. Waters.......  ........        X   .........
Mr. King (NY)..................        X   ........  .........  Mrs. Maloney.....  ........        X   .........
Mr. Royce......................        X   ........  .........  Mr. Gutierrez....  ........  ........  .........
Mr. Lucas......................        X   ........  .........  Ms. Velazquez....  ........        X   .........
Mr. Paul.......................        X   ........  .........  Mr. Watt.........  ........        X   .........
Mr. Manzullo...................        X   ........  .........  Mr. Ackerman.....  ........        X   .........
Mr. Jones......................        X   ........  .........  Mr. Sherman......  ........        X   .........
Mrs. Biggert...................        X   ........  .........  Mr. Meeks........  ........  ........  .........
Mr. Gary G. Miller (CA)........  ........  ........  .........  Mr. Capuano......  ........        X   .........
Mrs. Capito....................        X   ........  .........  Mr. Hinojosa.....  ........  ........  .........
Mr. Garrett....................        X   ........  .........  Mr. Clay.........  ........        X   .........
Mr. Neugebauer.................        X   ........  .........  Mrs. McCarthy      ........  ........  .........
                                                                 (NY).
Mr. McHenry....................        X   ........  .........  Mr. Baca.........  ........  ........  .........
Mr. Campbell...................        X   ........  .........  Mr. Lynch........  ........        X   .........
Mrs. Bachmann..................        X   ........  .........  Mr. Miller (NC)..  ........        X   .........
Mr. Marchant...................        X   ........  .........  Mr. David Scott    ........        X   .........
                                                                 (GA).
Mr. McCotter...................        X   ........  .........  Mr. Al Green (TX)  ........        X   .........
Mr. McCarthy (CA)..............        X   ........  .........  Mr. Cleaver......  ........  ........  .........
Mr. Pearce.....................        X   ........  .........  Ms. Moore........  ........        X   .........
Mr. Posey......................        X   ........  .........  Mr. Ellison......  ........  ........  .........
Mr. Fitzpatrick................        X   ........  .........  Mr. Perlmutter...  ........        X   .........
Mr. Westmoreland...............        X   ........  .........  Mr. Donnelly.....  ........  ........  .........
Mr. Luetkemeyer................        X   ........  .........  Mr. Carson.......  ........        X   .........
Mr. Huizenga...................        X   ........  .........  Mr. Himes........  ........  ........  .........
Mr. Duffy......................        X   ........  .........  Mr. Peters.......  ........        X   .........
Ms. Hayworth...................        X   ........  .........  Mr. Carney.......  ........        X   .........
Mr. Renacci....................        X   ........  .........
Mr. Hurt.......................        X   ........  .........
Mr. Dold.......................        X   ........  .........
Mr. Schweikert.................        X   ........  .........
Mr. Grimm......................        X   ........  .........
Mr. Canseco....................        X   ........  .........
Mr. Stivers....................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

    The following amendment was also considered by the 
Committee:
    An amendment offered by Mr. Green, no. 1 as amended by an 
amendment offered by Mr. Grimm, no. 1a (Record vote no. 7), 
requiring HUD to study the usage of the Emergency Mortgage 
Relief Program on members of the armed forces, veterans, and 
gold star recipients was agreed to by voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held a hearing and 
made findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The purposes of H.R.836 are to terminate the Emergency 
Mortgage Relief Program and rescind any unobligated balances 
remaining under the program because its cost, its 
effectiveness, and the benefits to its participants are 
uncertain. Given the country's current fiscal situation, a 
program whose benefits are speculative but where substantial 
taxpayer losses are certain does not warrant funding.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:
                                                     March 7, 2011.
Hon. Spencer Bachus,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 836, the Emergency 
Mortgage Relief Program Termination Act of 2011.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Chad Chirico.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 836--Emergency Mortgage Relief Program Termination Act of 2011

    Summary: H.R. 836 would terminate the Department of Housing 
and Urban Development's (HUD's) Emergency Mortgage Relief 
Program (EHLP). Additionally, the bill would rescind funds that 
remain available for the program as of the date of enactment.
    CBO estimates that enacting the legislation would decrease 
federal budget deficits by $840 million over the 2011-2012 
period. Pay-as-you-go procedures apply because the legislation 
would affect direct spending.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 836 is shown in the following table. 
The effects of this legislation fall within budget function 370 
(commerce and housing credit).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year in millions of dollars--
                                                  ------------------------------------------------------------------------------------------------------
                                                     2011     2012    2013   2014   2015   2016   2017   2018   2019   2020   2021  2011-2016  2011-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING

Estimated Budget Authority.......................     -390     -450      0      0      0      0      0      0      0      0      0      -840       -840
Estimated Outlays................................     -390     -450      0      0      0      0      0      0      0      0      0      -840       -840
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: The EHLP, authorized by the Dodd-Frank 
Wall Street Reform and Consumer Protection Act, provides up to 
$50,000 in subsidized loans to homeowners who are at least 
three months delinquent on their mortgages because of the 
temporary loss of employment and income. EHLP will pay all 
arrearages that a homeowner has incurred and, for up to 24 
months, the amount needed to lower the homeowner's contribution 
to the mortgage payment to 31 percent of gross monthly income. 
HUD also will allow program funds to be administered by a state 
that has an existing program that provides substantially 
similar assistance to homeowners.
    HUD has indicated that the program will assist homeowners 
in Puerto Rico and the 32 states that are not participating in 
the Department of Treasury's Hardest Hit Fund program; however, 
HUD has not yet awarded any EHLP funds to those states and 
territory. CBO estimates that terminating the EHLP will reduce 
outlays by $840 million over the 2011-2012 period.
    For this estimate, CBO assumes that the legislation will be 
enacted by June 2011. If the bill is enacted later in 2011, the 
expected savings would be reduced as HUD is likely to make EHLP 
awards under current law over the course of the next several 
months.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table. 
(Enacting H.R. 836 would have no impact on federal revenues.)

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 836, THE EMERGENCY MORTGAGE RELIEF PROGRAM TERMINATION ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON
                                                           FINANCIAL SERVICES ON MARCH 3, 2011
                                                        [By fiscal year, in millions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     2011     2012    2013   2014   2015   2016   2017   2018   2019   2020   2021  2011-2016  2011-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             NET DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact...................     -390     -450      0      0      0      0      0      0      0      0      0      -840       -840
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: The bill 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Chad Chirico; Impact 
on State, Local, and Tribal Governments: Lisa Ramirez-Branum; 
Impact on the Private Sector: Paige Piper-Bach.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 836 does not contain any congressional earmarks, 
limited tax benefits, or limited tariffs benefits as defined in 
clause 9 of rule XXI.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section establishes the short title of the bill, the 
`Emergency Mortgage Relief Program Termination Act.'

Section 2. Rescission of funding for emergency mortgage relief program

    This section rescinds and permanently cancels all 
unobligated balances remaining available to the Emergency 
Mortgage Relief Program under Section 1496(a), Dodd-Frank Wall 
Street Reform and Consumer Protection Act as of such date of 
enactment.

Section 3. Termination of Emergency Mortgage Relief Program

    This section repeals the Emergency Mortgage Relief Program. 
Subsection (b) of this section also provides that any amounts 
obligated for the Emergency Mortgage Relief Program before the 
date of enactment shall continue to be governed by the 
provisions of the Emergency Mortgage Relief Program that were 
in effect immediately before the program's repeal.
    Further, subsection (d) of this section directs the 
Secretary of Housing and Urban Development to conduct a study 
to determine the extent of usage of the Emergency Mortgage 
Relief Program by ``covered homeowners.'' Covered homeowners 
are defined as individuals who are active duty members of the 
U.S. armed forces and their spouses or parents, veterans of the 
U.S. armed forces, and individuals eligible to receive a Gold 
Star lapel button under 10 U.S.C. 1126 as the widow, parent, or 
next of kin of a fallen member of the U.S. armed forces. The 
Secretary of Housing and Urban Development is then required to 
submit a report to Congress including the results of that study 
and identifying any best practices that could be applied to the 
Emergency Mortgage Relief Program for covered homeowners within 
90 days of enactment of this Act.
    Finally, this section requires the Secretary of Housing and 
Urban Development to terminate the Emergency Mortgage Relief 
Program upon the outlay of the funds necessary to complete the 
tasks referred to in subsections (b) and (d) of this section.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets):

                     EMERGENCY HOUSING ACT OF 1975

           *       *       *       *       *       *       *
                  [TITLE I--EMERGENCY MORTGAGE RELIEF

                              [SHORT TITLE

  [Sec. 101. This title may be cited as the ``Emergency 
Homeowners' Relief Act.''

                         [FINDINGS AND PURPOSE

  [Sec. 102. (a) The Congress finds that--
          [(1) the Nation is in a severe recession and that the 
        sharp downturn in economic activity has driven large 
        numbers of workers into unemployment and has reduced 
        the incomes of many others;
          [(2) as a result of these adverse economic conditions 
        the capacity of many homeowners to continue to make 
        mortgage payments has deteriorated and may further 
        deteriorate in the months ahead, leading to the 
        possibility of widespread mortgage foreclosures and 
        distress sales of homes; and
          [(3) many of these homeowners could retain their 
        homes with temporary financial assistance until 
        economic conditions improve.
  [(b) It is the purpose of this title to provide a standby 
authority which will prevent widespread mortgage foreclosures 
and distress sales of homes resulting from the temporary loss 
of employment and income through a program of emergency loans 
and advances and emergency mortgage relief payments to 
homeowners to defray mortgage expenses.

                   [MORTGAGES ELIGIBLE FOR ASSISTANCE

  [Sec. 103. No assistance shall be extended with respect to 
any mortgage under this title unless--
          [(1) the holder of the mortgage has indicated to the 
        mortgagor its intention to foreclose;
          [(2) the mortgagor and holder of the mortgage have 
        certified that circumstances make it probable that 
        there will be a foreclosure and that the mortgagor is 
        in need of emergency mortgage relief as authorized by 
        this title;
          [(3) payments under the mortgage have been delinquent 
        for at least three months;
          [(4) the mortgagor has incurred a substantial 
        reduction in income as a result of involuntary 
        unemployment or underemployment due to adverse economic 
        conditions and is financially unable to make full 
        mortgage payments;
          [(5) there is a reasonable prospect that the 
        mortgagor will be able to make the adjustments 
        necessary for a full resumption of mortgage payments; 
        and
          [(6) the mortgaged property is the principal 
        residence of the mortgagor.

                         [LIMITS OF ASSISTANCE

  [Sec. 104. (a) Assistance under this title with respect to a 
mortgage which meets the requirements of section 103 may be 
provided in the form of emergency mortgage relief loans and 
advances of credit insured pursuant to section 105 or in the 
form of emergency mortgage relief payments made by the 
Secretary pursuant to section 106.
  [(b) Assistance under this title on behalf of a homeowner may 
be made available in an amount up to the amount of the 
principal, interest, taxes, ground rents, hazard insurance, and 
mortgage insurance premiums due under the homeowner's mortgage, 
but such assistance shall not exceed the lesser of $250 per 
month or the amount determined to be reasonably necessary to 
supplement such amount as the homeowner is capable of 
contributing toward such mortgage payment.
  [(c) Monthly payments may be provided under this title either 
with the proceeds of an insured loan or advance of credit or 
with emergency mortgage relief payments for up to twelve 
months, and, in accordance with criteria prescribed by the 
Secretary, such monthly payments may be extended once for up to 
twelve additional months. A mortgagor receiving the benefit of 
mortgage relief assistance pursuant to this title shall be 
required, in accordance, with criteria prescribed by the 
Secretary, to report any increase in income which will permit a 
reduction or termination of such assistance during this period.
  [(d) Emergency loans or advances of credit made and insured 
under section 105, and emergency mortgage relief payments made 
under section 106, shall be repayable by the homeowner upon 
such terms and conditions as the Secretary shall prescribe, 
except that interest on a loan or advance of credit insured 
under section 105 or emergency mortgage relief payments made 
under section 106 shall not be charged at a rate which exceeds 
the maximum interest rate applicable with respect to mortgages 
insured pursuant to section 203(b) of the National Housing Act.
  [(e) The Secretary may provide for the deferral of the 
commencement of the repayment of a loan or advance insured 
under section 105 or emergency mortgage relief payments made 
under section 106 until one year following the date of the last 
disbursement of the proceeds of the loan or advance or payments 
or for such longer period as the Secretary determines would 
further the purpose of this title. The Secretary shall by 
regulation require such security for the repayment of insured 
loans or advances of credit or emergency mortgage relief 
payments as he deems appropriate and may require that such 
repayment be secured by a lien on the mortgaged property.

             [EMERGENCY MORTGAGE RELIEF LOANS AND ADVANCES

  [Sec. 105. (a) The Secretary is authorized, upon such terms 
and conditions as the Secretary may prescribe, to insure banks, 
trust companies, finance companies, mortgage companies, savings 
and loan associations, insurance companies, credit unions, and 
such other financial institutions, which the Secretary finds to 
be qualified by experience and facilities and approves as 
eligible for insurance, against losses which they may sustain 
as a result of emergency loans or advances of credit made in 
accordance with the provisons of section 104 and this section 
with respect to mortgages eligible for assistance under this 
title.
  [(b) The Secretary is authorized to fix a premium charge or 
charges for the insurance granted under this section, but in 
the case of any loan or advance credit, such charge or charges 
shall not exceed an amount equivalent to one-half of 1 per 
centum per annum of the principal obligation of such loan or 
advance of credit outstanding at any time.
  [(c) The Secretary is authorized and empowered to waive 
compliance with any rule or regulation prescribed by the 
Secretary for the purposes of this section if, in the 
Secretary's judgment, the enforcement of such rule or 
regulation would impose an injustice upon an insured lending 
institution which has substantially complied with such 
regulations in good faith. Any payment for loss made to an 
insured financial institution under this section shall be final 
and incontestable after two years from the date the claim was 
certified for payment by the Secretary, in the absence of fraud 
or misrepresentation on the part of such institution unless a 
demand for repurchase of the obligation shall have been made on 
behalf of the United States prior to the expiration of such 
two-year period. The Secretary is authorized to transfer to any 
financial institution approved for insurance under this title 
any insurance in connection with any loan which may be sold to 
it by another insured financial institution.
  [(d) The aggregate amount of loans and advances insured under 
this section and emergency mortgage relief payments made under 
section 106 shall not exceed $3,000,000,000.
  [(e) The Secretary shall establish underwriting guidelines or 
procedures to allocate amounts made available for loans and 
advances insured under this section and for emergency relief 
payments made under section 106 based on the likelihood that a 
mortgagor will be able to resume mortgage payments, pursuant to 
the requirement under section 103(5).

                  [EMERGENCY MORTGAGE RELIEF PAYMENTS

  [Sec. 106. (a) In the case of any mortgagee which would 
otherwise be eligible to participate in the program authorized 
under section 105 but does not qualify for an advance or 
advances as authorized by section 113 of this title or under 
section 10, 10b, or 11 of the Federal Home Loan Bank Act or 
otherwise elects not to participate in the program authorized 
under section 105, the Secretary is authorized to make 
repayable emergency mortgage relief payments directly to such 
mortgagee on behalf of homeowners whose mortgages are held by 
such financial institution and who are delinquent in their 
mortgage payments.
  [(b) Emergency mortgage relief payments shall be made under 
this section only with respect to a mortgage which meets the 
requirements of section 103 and only on such terms and 
conditions as the Secretary may prescribe, subject to the 
provisions of section 104.
  [(c) The Secretary may make such delegations and accept such 
certifications with respect to the processing of mortgage 
relief payments provided under this section as he deems 
appropriate to facilitate the prompt and efficient 
implementation of the assistance authorized under this section.

                   [EMERGENCY HOMEOWNERS' RELIEF FUND

  [Sec. 107. To carry out the purposes of this title, the 
Secretary is authorized to establish in the Treasury of the 
United States an Emergency Homeowners' Relief Fund (hereinafter 
in this title referred to as the ``fund'') which shall be 
available to the Secretary without fiscal year limitation--
          [(1) for making payments in connection with defaulted 
        loans or advances of credit insured under section 105 
        of this title;
          [(2) for making emergency mortgage relief payments 
        under section 106 of this title;
          [(3) to pay such administrative expenses (or portion 
        of such expenses) of carrying out the provisions of 
        this title as the Secretary may deem necessary.

                      [AUTHORITY OF THE SECRETARY

  [Sec. 108. (a) The Secretary is authorized to make such rules 
and regulations as may be necessary to carry out the provisions 
of this title.
  [(b) Notwithstanding any other provision of law relating to 
the acquisition, handling, improvement, or disposal of real or 
other property by the United States, the Secretary shall have 
power, for the protection of the interest of the fund 
authorized under this title, to pay out of such fund all 
expenses or charges in connection with the acquisition, 
handling, improvement, or disposal of any property, real or 
personal, acquired by the Secretary as a result of recoveries 
under security, subrogation, or other rights.
  [(c) In the performance of, with respect to, the functions, 
powers, and duties vested in the Secretary by this title, the 
Secretary shall--
          [(1) have the power, notwithstanding any other 
        provision of law, whether before or after default, to 
        provide by contract or otherwise for the extinguishment 
        upon default of any redemption, equitable, legal, or 
        other right, title in any mortgage, deed, trust, or 
        other instrument held by or held on behalf of the 
        Secretary under the provisions of this title; and
          [(2) have the power to foreclose on any property or 
        commence any action to protect or enforce any right 
        conferred upon the Secretary by law, contract, or other 
        agreement, and bid for and purchase at any foreclosure 
        or other sale any property in connection with which 
        assistance has been provided pursuant to this title. In 
        the event of any such acquisition, the Secretary may, 
        notwithstanding any other provision of law relating to 
        the acquisition, handling, or disposal of real property 
        by the United States, complete, remodel and convert, 
        dispose of, lease, and otherwise deal with, such 
        property. Notwithstanding any other provision of law, 
        the Secretary also shall have power to pursue to final 
        collection by way of compromise or otherwise all claims 
        acquired by him in connection with any security, 
        subrogation, or other rights obtained by him in 
        administering this title.
  [(d) Coverage of Existing Programs.--The Secretary shall 
allow funds to be administered by a State that has an existing 
program that is determined by the Secretary to provide 
substantially similar assistance to homeowners. After such 
determination is made such State shall not be required to 
modify such program to comply with the provisions of this 
title.

                            [EXPIRATION DATE

  [Sec. 109. No loans or advance of credit shall be insured and 
no emergency mortgage relief payments made under this title 
after September 30, 2011, except if such loan or advance or 
such payments are made with respect to a mortgagor receiving 
the benefit of a loan or advance insured, or emergency mortgage 
relief payments made, under this title on such date.

                             [NOTIFICATION

  [Sec. 110. Each Federal supervisory agency with respect to 
financial institutions subject to its jurisdiction, and the 
Secretary, with respect to other approved mortgagees, shall (1) 
prior to October 1, 1977, take appropriate action, not 
inconsistent with laws relating to the safety or soundness of 
such institutions or mortgagee, as the case may be, to waive or 
relax limitations pertaining to the operations of such 
institutions or mortgagees with respect to mortgage 
delinquencies in order to cause or encourage forebearance in 
residential mortgage loan foreclosures, and (2) until one year 
from the date of enactment of this title, request each such 
institution or mortgagee to notify that Federal supervisory 
agency, the Secretary, and the mortgagor, at least thirty days 
prior to instituting foreclosure proceedings in connection with 
any mortgage loan. As used in this title the term ``Federal 
supervisory agency'' means the Board of Governors of the 
Federal Reserve System, the Board of Directors of the Federal 
Deposit Insurance Corporation, the Comptroller of the Currency, 
the Federal Home Loan Bank Board, the Federal Savings and Loan 
Insurance Corporation, and the National Credit Union 
Administration.

                                [REPORTS

  [Sec. 111. Within sixty days after enactment of this title 
and within each sixty-day period thereafter prior to October 1, 
1977, the Secretary shall make a report to the Congress on (1) 
the current rate of deliquencies and foreclosures in the 
housing market areas of the country which should be of 
immediate concern if the purposes of this title is to be 
achieved; (2) the extent of, and prospect for continuance of, 
voluntary forebearance by mortgagees in such housing market 
areas; (3) actions being taken by governmental agencies to 
encourage forebearance by mortgages in such housing market 
areas; (4) actions taken and actions likely to be taken with 
respect to making assistance under this title available to 
alleviate hardships resulting from any serious rates of 
delinquencies and foreclosures; and (5) the current default 
status and projected default trends with respect to mortgages 
covering multifamily properties with special attention to 
mortgages insured under the various provisions of the National 
Housing Act and with recommendations on how such defaults and 
prospective defaults may be cured or avoided in a manner which, 
while giving weight to the financial interests of the United 
States, takes into full consideration the urgent needs of the 
many low- and moderate-income families that currently occupy 
such multifamily properties.

                    [NONAPPLICABILITY OF OTHER LAWS

  [Sec. 112. Notwithstanding any provision of law which limits 
the nature, amount, term, form, or rate of interest, or the 
nature, amount, or form of security of loans or advances of 
credit, loans, or advances of credit may be made in accordance 
with the provisions of this title without regard to such 
provision of law.

            [FEDERAL DEPOSIT INSURANCE CORPORATION ADVANCES

  [Sec. 113. Notwithstanding any other provision of law, the 
Federal Deposit Insurance Corporation is authorized, upon such 
terms and conditions as the Corporation may prescribe, to make 
such advances to any insured bank as the Corporation determines 
may be necessary or appropriate to facilitate participation by 
such bank in the program authorized by this title. For the 
purpose of obtaining such funds as it determines are necessary 
for such advances, the Corporation may borrow from the Treasury 
as authorized in section 14 of the Federal Deposit Insurance 
Act (12 U.S.C. 1824; 64 Stat. 890), and the Secretary of the 
Treasury is authorized and directed to make loans to the 
Corporation for such purpose in the same manner as loans may be 
made for insurance purposes under such section, subject to the 
maximum limitation on outstanding aggregate loans there 
provided.]

           *       *       *       *       *       *       *

                            DISSENTING VIEWS

    H.R. 836, the ``Emergency Mortgage Relief Program 
Termination Act'' is one of four bills being advanced by the 
Majority as a coordinated assault on federal programs designed 
to address the nationwide housing and foreclosure crisis. This 
bill would rescind $1 billion which will soon be allocated to 
states, for use as bridge loans to unemployed homeowners to 
cover mortgage payments until these homeowners can find a job, 
in order to avoid a foreclosure and give these borrowers a 
chance to keep their homes.
    This program is one of a number of complementary federal 
programs that address different problems posed by our current 
housing programs. The other programs that the Majority is 
shutting down are the HAMP loan modification program, an FHA 
refinance program that is used in conjunction with principal 
mortgage reductions, and grants to local communities for 
purchase and rehabilitation of foreclosed and abandoned homes, 
to address blight and deterioration of neighborhoods 
experiencing a high foreclosure rate. At the hearing on these 
four bills, not a single witness--including the GAO and 
SIGTARP, who were witnesses called by the Majority--supported 
shutting down any of these four programs at this time.
    A major factor in the housing crisis was private sector 
lenders originating loans to borrowers that could not afford 
them, with such loans often combined with predatory loan 
features, such as exploding mortgage rate reset terms. As the 
housing crisis hit and homeowners started to default on loans, 
these same private sector lenders announced that they would 
address problems through proprietary loan modifications. In 
practice, there is a general consensus that these initial 
efforts were woefully inadequate to address the default and 
foreclosure crisis, particularly since a majority of these 
modifications actually increased the payments borrowers were 
required to make. Therefore, in early 2009, the Obama 
Administration started to roll out the first of a number of 
initiatives, using general authority under the TARP 
legislation, to facilitate loan modifications and refinancings 
of borrowers in or at risk of default, and in danger of 
foreclosure.
    Now, two years later, as some of these initiatives are 
showing real results and others are just beginning to take off, 
House Republicans want to shut these efforts down. They claim 
that these federal programs have not helped enough homeowners. 
But, their answer to the criticism that not enough homeowners 
have been helped by these programs . . . is to stop them from 
helping anyone else in the future. Their answer is to eliminate 
federal assistance that helps keep people in their homes and to 
eliminate the nationwide loan modification standards that go 
with them. Their answer is to turn over resolution of the 
foreclosure crisis to the very entities that created the bad 
loans in the first place and failed to achieve meaningful loan 
modifications in the period before these government programs 
were put in place. The result would lead inevitably to a 
worsening of the foreclosure crisis, dampened home prices, and 
economic instability.
    This bill would rescind and permanently cancel all 
unobligated balances pursuant to the $1 billion in loans to 
unemployed homeowners that was authorized and funded in last 
year's Dodd-Frank financial reform bill. The bill would also 
repeal the underlying authorization for such loans. The effect 
would be to kill the program before any funds are made 
available to unemployed homeowners.
    A reasonable projection is that the program will help from 
30,000 to 50,000 distressed homeowners. Under the program, $1 
billion is to be made available by HUD for loans to homeowners 
who are delinquent on their loans as a result of unemployment 
or medical condition. The purpose is to provide assistance with 
mortgage payments until the homeowner can find a job or is 
otherwise able to resume mortgage payments. The program fills 
an important gap, because HAMP and other private loan 
modification programs are designed to address a structural 
mismatch between a borrower's income and mortgage payments, 
while this program is designed to address what is hoped to be a 
temporary loss of income.
    The program provides a zero interest bridge loan during the 
period when the borrower can't make payments. the amount of the 
loan is designed to reduce monthly payments to an affordable 
31% of a borrower's current income. When a borrower is able 
resume payments on the mortgage, the borrower must begin 
repayment of the bridge loan. The program is being implemented 
through a provision which creates incentives for timely payment 
on the loan, in the form of a reduction of 20% of the loan 
balance each year that the borrower is current on that loan.
    Grants will be distributed by formula to 32 states. These 
are the states that have not separately received funding under 
$7.6 billion in cumulative TARP funds that Treasury has made 
available over the last year under its ``Hardest Hit Fund'' to 
the 18 states that have been hardest hit by the housing and 
foreclosure crisis. The $1 billion will thus fill a gap by 
providing assistance to those states who did not receive 
Hardest Hit Funds, and therefore recission of these funds would 
create a significant imbalance in the allocation of such 
assistance nationwide.
    While the Emergency Mortgage Relief and Hardest Hit 
programs are not identical, they are substantially similar. The 
major difference is that Emergency Mortgage Relief is limited 
only to bridge loans to homeowners who are unemployed or have a 
medical problem creating payment programs, while the Hardest 
Hit program is used for this purpose, but also allows other 
flexible uses of funds at the option of the state, such as for 
principal reduction payments.
    The Emergency Mortgage Relief program is very similar to a 
program that has been administered for many years by the State 
of Pennsylvania, the ``Homeowners Emergency Mortgage Assistance 
Program,'' also known as entitled HEMAP. Since its inception in 
1983, 45,316 homeowners in Pennsylvania have been assisted, at 
an average loan amount of $11,000 per borrower. Like the 
federal program being proposed to be abolished by this bill, 
the HEMAP program provides loans to homeowners having mortgage 
payment problems because of unemployment, with the goal having 
the borrower resume payments when they are able to do so. 85% 
of HEMAP recipients have been able to keep their home as a 
result of such assistance.
    Proponents of shutting down the program have argued that 
the program will have a low cost recovery rate and therefore a 
high subsidy rate. It is true that repayment terms are somewhat 
more flexible than under either the Pennsylvania HEMAP program 
or some of the state Hardest Hit Fund programs--principally 
because of the incentive that HUD is offering under the program 
of forgiving principal over time on these loans based on a 
homeowner making on-time mortgage payments. However, this 
feature is designed to increase both the sustainability of 
homeowners being able to make the underlying mortgage payments 
and the behavioral incentive for a borrower to make such on-
time payments.
    Shutting down this program prematurely would eliminate an 
important tool for 32 states to help unemployed homeowners keep 
their home long enough to find another job and ultimately 
resume mortgage payments and hang on to their home. There is no 
comparable private sector option for these unemployed 
borrowers. Enactment of this bill will therefore increase 
foreclosures and put more strain on our nations' housing 
markets.

                                   Gregory W. Meeks.
                                   Emanuel Cleaver.
                                   Gwen Moore.
                                   Stephen F. Lynch.
                                   Ruben Hinojosa.
                                   Nydia M. Velazquez.
                                   Barney Frank.
                                   Carolyn B. Maloney.
                                   Luis V. Gutierrez.
                                   Michael E. Capuano.
                                   Keith Ellison.
                                   Maxine Waters.

                                  

```