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| TIME | SPEAKER | TEXT |
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| 00:00:14 |
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UP NEXT, A HEARING ON THE U.S. HOUSING MARKET. AND 8,000-DOLLAR TAX CREDIT FOR FIRST-TIME HOME BUYERS... |
| 00:00:33 |
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AUDIENCES AND WITNESSES THIS MORNING AND WE WELCOME OUR COLLEAGUE FROM GEORGIA, SENATOR JOHNNY ISAKSON... |
| 00:06:40 |
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THANK YOU, MR. CHAIRMAN, AND THANK YOU FOR CALLING THIS HEARING. GIVEN THE UNDENIABLE HOLD THAT THE... |
| 00:10:51 |
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THANK YOU VERY MUCH. SENATOR ISAACSON, WE WELCOME YOU TO THE COMMITTEE. GOING OVER YOUR TESTIMONY... |
| 00:11:30 |
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THANK YOU, CHAIRMAN AND RANKING MEMBER SHALL BE AND MEMBERS OF THE COMMITTEE. I APPRECIATE THE OPPORTUNITY... |
| 00:21:33 |
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THANK YOU VERY MUCH, ELOQUENT TESTIMONY BASED ON PERSONAL KNOWLEDGE OVER THE YEARS WHICH IS VALUABLE... |
| 00:22:54 |
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THE CHAIRMAN MAKES AN EXCELLENT POINT IF YOU LOOK AT THE SALES OF FIRST-TIME HOME BUYERS THEY ARE... |
| 00:23:40 |
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THANK YOU FOR TALKING ABOUT THAT. [LAUGHTER] DON'T YOU HAVE A BETTER EXAMPLE THAN THAT ONE? |
| 00:23:45 |
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I KNEW WHAT HIT HOME. IT WORKS BOTH WAYS BUT THE POINT IS I HANDLED THE RELOCATION FOR THE UPS CORPORATION.... |
| 00:24:29 |
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THANK YOU VERY MUCH. SENATOR SHALL BECOME ANY COMMENTS? |
| 00:24:33 |
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I WANT TO COMMEND HIM FOR HIS TESTIMONY AND FOR GIVING HIS 30 SOMETHING YEARS OF EXPERIENCE IN THE... |
| 00:25:09 |
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IN RESPONSE TO THAT, AND I WILL GET MY STAFFER TO SUBMIT FOR THE RECORD THAT WE HAVE A CBO SCORE ON... |
| 00:25:37 |
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ABSOLUTELY. |
| 00:25:38 |
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OF OFF TRILLIONS OF DOLLARS FEDERAL HAS SPENT, THE HUNDREDS OF BILLIONS CONGRESS HAS APPROPRIATED,... |
| 00:26:00 |
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I DON'T DISAGREE. |
| 00:26:01 |
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WE WILL ALL BE BETTER OFF WHEN WE GET HOUSING BACK MOVING AGAIN. |
| 00:26:05 |
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I DON'T DISAGREE. IF WE CAN FIND 84 -- OVER THE YEARS WE HAVE HAD A LOSS OF TAX CUTS BUT WE HAVEN'T... |
| 00:26:21 |
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WELCOME, SENATOR ISAKSON. IF YOU COULD PULL BACK INTO THE DATABASE USAGE 74 THERE WAS A 2,000-DOLLAR... |
| 00:26:43 |
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IT IS A GREAT QUESTION, SENATOR. AND BOB CORKER WILL REMEMBER IN SOME OF THE LIBERAL BANKING THAT ... |
| 00:28:00 |
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YES, SIR? |
| 00:28:02 |
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I'M GOING TO BE VERY BRIEF. I KNOW THAT THIS ISSUE WILL BE DEBATED AND I KNOW THAT THE PAY-FORS WILL... |
| 00:28:31 |
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THANK YOU. |
| 00:28:32 |
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THANK YOU VERY MUCH. SENATOR BERKELEY. |
| 00:28:37 |
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THANK YOU, MR. CHAIR. ONE THING I WANT TO ASK ABOUT IS YOU NOTED IN YOUR COMMENTS ABOUT YOU DON'T... |
| 00:29:54 |
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THAT IS A GOOD QUESTION. THERE MIGHT BE A CASE IN A NARROW FOCUS, BUT I PERSONALLY THINK HE WOULD... |
| 00:31:18 |
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LET ME ASK ANOTHER QUESTION ABOUT THE MODEL BEING PUT FORWARD. AS I UNDERSTAND, THE VISION YOUR SUGGESTION... |
| 00:31:32 |
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RIGHT. |
| 00:31:34 |
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WHICH IS GOING TO BE HERE SO QUICKLY. AND SO IT WILL BE THE MIDDLE OF NEXT YEAR. I THINK WE ARE IN... |
| 00:32:16 |
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WELL I LEARNED A LONG TIME AGO IN GOVERNMENT THAT LEGISLATION IS ABOUT THE ART OF THE POSSIBLE. AND... |
| 00:34:29 |
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THANK YOU VERY MUCH FOR SHARING YOUR EXPERTISE WITH THE COMMITTEE. |
| 00:34:32 |
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ALWAYS HAPPY TO HAVE MY NEIGHBOR HERE. |
| 00:34:36 |
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THE POINT HE MADE ABOUT COMING TO THE THREE BEST MONTHS I THINK ARE VERY, VERY VALUABLE. AND THAT'S... |
| 00:34:50 |
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THANK YOU. |
| 00:34:53 |
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THANK YOU. CONGRATULATIONS ON THE PHILLIES WINNING. |
| 00:35:01 |
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BALILES BOY, HOW THEY WON IS MORE IMPORTANT. [LAUGHTER] LET'S GET BACK TO THE HOUSING MARKET. |
| 00:35:09 |
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THE ORIGINAL PLAN THAT YOU PROPOSED WAS A 15,000-DOLLAR TAX CREDIT FOR NEW AND EXISTING HOMES. IS... |
| 00:35:19 |
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IS CORRECT. |
| 00:35:23 |
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AND WE WERE ABLE TO ONLY DO THE $8,000, KNEW ONLY HOUSING -- |
| 00:35:28 |
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IT IS NEW OR RESALE BUT FIRST-TIME HOME BUYER. |
| 00:35:31 |
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FIRST-TIME HOME BUYER, BUT THAT REALLY LIMITS THE MARKET. REMEMBER THE, WHAT DID YOU CALL IT, THE... |
| 00:35:40 |
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MOVED UP. |
| 00:35:41 |
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THE MOVE UP MARKET, THOSE ARE NOT NECESSARILY FIRST-TIME HOME BUYERS. THOSE ARE OBVIOUSLY PEOPLE THAT... |
| 00:36:27 |
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NO, THIS IS SOMEBODY WHO WANTS TO LIVE. |
| 00:36:31 |
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ALSO THE CURRENT TAX CREDIT YOUR LIMITED FOR AN INDIVIDUAL OF 75,000 OR A COUPLE FILING JOINTLY 150,000.... |
| 00:36:50 |
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I THINK IT'S NECESSARY BEING AND FINANCE, AS I WAS FOR 30 SOME YEARS, IF YOU DON'T HAVE A STABLE HOUSING... |
| 00:39:37 |
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SENATOR BENNETT. |
| 00:39:38 |
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I WOULD SAY RETURNING AGAIN THIS WEEK FROM COLORADO, IT WAS A REMINDER THAT FOR WORKING FAMILIES THIS... |
| 00:40:05 |
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THANK YOU VERY MUCH. |
| 00:40:07 |
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YOU MIGHT WANT TO STAY HERE ALL DAY GETTING ALL OF THESE COMPLEMENTS. |
| 00:40:13 |
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GETTING A LOT OF COMPLIMENTS BUT WE'LL DESERVE. AS I THOUGHT ABOUT THE CHARGE THAT HE PUT UP THEIR... |
| 00:41:10 |
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THANK YOU VERY MUCH. I APPRECIATE ALL THE KIND COMMENTS AND I HAVE ONE CLOSING REMARKS. I NEGLECTED... |
| 00:41:54 |
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I WANT TO THANK THE COMMITTEE AND I ENJOY SERVING WITH EACH AND EVERY ONE OF YOU. |
| 00:41:59 |
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THE COSPONSORSHIP OF THIS BILL IS AVAILABLE TO MEMBERS AND SENATOR ISAKSON WILL WELCOME ANYONE WHO... |
| 00:42:08 |
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THANK YOU. |
| 00:42:10 |
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LET ME WELCOME TO OUR DIAS ONCE AGAIN THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT, SHAUN DONOVAN... |
| 00:42:51 |
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GOOD MORNING CHAIRMAN DODD, RANKING MEMBER SHALL BE AND MEMBERS OF THE COMMITTEE THANK YOU FOR THE... |
| 00:52:45 |
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THANK YOU VERY MUCH MR. SECRETARY. WE APPRECIATE YOUR STRONG EFFORTS AND THOSE THAT THE STAFF AT HUD... |
| 00:54:01 |
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FIRST OF ALL I PLEASE SAY THAT I WOULD AGREE WITH SENATOR ISAKSON THERE. THERE IS CLEAR EVIDENCE THAT... |
| 00:54:48 |
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IS THAT GOING TO BE POSSIBLE IN THE NEXT COUPLE OF WEEKS? |
| 00:54:52 |
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CHAIRMAN I WAS ABOUT TO SAY WE'LL UNDERSTAND THE URGENCY OF THIS SITUATION AND WE BELIEVE THAT WITHIN... |
| 00:55:31 |
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I APPRECIATE AND I'M GOING TO TRY TO MOVE ALONG SO WE GIVE A CHANCE TO A NUMBER OF MEMBERS HERE BUT... |
| 00:55:51 |
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FIRST OF ALL LET ME SAY THIS IS NOT MY OPINION ALONE. WE HAVE AN INDEPENDENT ACTUARIAL STUDY WHICH... |
| 00:58:14 |
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I APPRECIATE THAT AND I'M SURE WE WILL HAVE ADDITIONAL QUESTIONS ON FHA. LET ME JUMP TO THE FORECLOSURE... |
| 00:59:37 |
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THIS IS AN IMPORTANT DEBATE. THIS IS THEN AN IMPORTANT DEBATE WITHIN THE DISCUSSION AROUND THE FORECLOSURED... |
| 01:01:44 |
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THANK YOU VERY MUCH. SENATORS SHELDON. |
| 01:01:49 |
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MR. SECRETARY, YOU TESTIFIED AND I WILL USE YOUR WORDS, BASED ON CURRENT PROJECTIONS AND ABSENT ANY... |
| 01:03:13 |
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WELL, THERE WILL BE SIGNIFICANT DETAIL IN THE ACTUARIAL REPORT WHICH WILL SHOW A LOOK AT IT, EVEN... |
| 01:04:50 |
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SO YOU ARE PRETTY CONFIDENT YOU ARE GOING TO BE OKAY? IS THAT WHAT YOU ARE SAYING? |
| 01:04:55 |
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NONE OF US CAN EVER PREDICT EXACTLY WHAT IS GOING TO HAPPEN IN THE FUTURE. I WOULD LIKE TO BE MORE... |
| 01:05:50 |
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IF WE DIDN'T PASS, SENATOR DODD IS STILL HERE, TO HEAR YOUR TESTIMONY-- IF WE DIDN'T PASS THE TAX... |
| 01:06:07 |
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MY OWN VIEW IS THAT THERE ARE A NUMBER OF DIFFERENT. I BELIEVE IN GENERAL, THAT THE TAX CREDIT AS... |
| 01:07:09 |
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SECRETARY DO YOU BELIEVE THAT CENTRAL TO A RECOVERY OF OUR ECONOMY, HOUSING AT THE PLAY'S CENTRAL... |
| 01:07:16 |
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I WOULD SAY NOT ONLY DO I BELIEVE THAT IS TRUE BUT I BELIEVE THE ACTIONS OF THIS ADMINISTRATION, THE... |
| 01:07:31 |
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WHAT ACTIONS DO YOU MEAN? |
| 01:07:33 |
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I WOULD REITERATE WHAT I DISCUSSED IN MY TESTIMONY WHICH IS FIRST AND FOREMOST CONCERTED ACTIONS TO... |
| 01:07:46 |
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I THOUGHT THE FEDERAL RESERVE DID THAT COME IN NOT THE ADMINISTRATION. |
| 01:07:50 |
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THERE WERE ALSO ACTIONS TAKEN BY THE TREASURY AS WELL AS THE IMPORTANT ACTIONS OF THE FHA TO MAKE... |
| 01:08:04 |
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I KNOW MY TIME IS UP IF NOT ALREADY UP BUT I HAVE A QUESTION I NEED TO GET INTO. IN YOUR TESTIMONY... |
| 01:09:28 |
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WHAT I WOULD SAY, AND YOU TALKED EARLIER SENATOR SHALL BE ABOUT THE IMPORTANCE OF UNDERSTANDING THE... |
| 01:09:36 |
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ABSOLUTELY. |
| 01:09:38 |
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WE RECENTLY DELIVERED A REPORT TO THIS COMMITTEE THAT SHOWED THE VERY CENTRAL ROLE THAT A SET OF UNREGULATED,... |
| 01:10:28 |
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THANK YOU. |
| 01:10:32 |
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THANK YOU VERY MUCH AND ON THAT POINT, OBVIOUSLY WE HAVE THEM ON THE BOOKS SOME OF THESE REGULATIONS.... |
| 01:10:51 |
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THANK YOU. I ALSO WANT TO THANK SENATOR ISAKSON FOR HIS PROFOUND TESTIMONY. THANK YOU SENATOR. ONE... |
| 01:11:41 |
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SENATOR LET ME MAKE ONE IMPORTANT CLARIFICATION DEWHITE YOU SAID. UNEMPLOYED HOMEOWNERS ARE ELIGIBLE... |
| 01:13:16 |
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THANK YOU MR. SECRETARY. ANOTHER ASPECT OF THE HAMP PROGRAM IS, AS I UNDERSTAND THERE IS A SIGNIFICANT... |
| 01:13:32 |
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SIMPLY, JUST TO MAKE SURE IT IS CLEAR TO THE COMMITTEE OF THE PROCESS WORKS, WE BEGIN MODIFICATIONS... |
| 01:14:44 |
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THIS TRANSITION TO PERMANENCY IS NOT AUTOMATIC. THE INDIVIDUAL HAS TO BE CURRENT ON THEIR PAYMENT... |
| 01:14:53 |
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THAT IS CORRECT. WE WANT TO MAKE SURE IT IS WORKING AND WE FRANKLY WANT TO MAKE SURE WE DON'T REPEAT... |
| 01:15:25 |
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A QUICK QUESTION AS MY TIME IS RAPIDLY EXPIRING. WE ANTICIPATING RESETTING OF FARM LOANS SIGNIFICANTLY... |
| 01:15:50 |
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WE HAVE BEEN MODIFYING SOME NUMBER OF THESE OPTION ARM LOANS SEDAR STARTING TO RATCHET UP IN PARTICULARLY... |
| 01:16:51 |
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THANK YOU. |
| 01:16:54 |
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THANK YOU SENATOR VERY MUCH. SENATOR ISAKSON, I APOLOGIZE. IF YOU WANT TO JOIN US ON THE DAY AS YOU... |
| 01:17:13 |
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THANK YOU MR. SECRETARY, THANK YOU FOR YOUR TESTIMONY. I WAS STRUCK BY THE COMMENT YOU MADE THAT YOU... |
| 01:18:14 |
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SENATOR MAYBE YOU COULD SAY A LITTLE BIT MORE ABOUT THE SPECIFICS. |
| 01:18:18 |
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I THINK WHAT IS HAPPENING IS LOANS ARE CONTINUALLY BEING CRITICIZED SO COMMUNITY BANKERS ARE CONTINUING... |
| 01:18:38 |
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I THINK THERE IS NO QUESTION THAT THERE HAVE BEEN IMPORTANT DISCUSSIONS AND INTERACTIONS IN THE ADMINISTRATION... |
| 01:20:47 |
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I CAME INTO THIS PUBLIC SERVICE ARENA CIVICALLY, NOT IN BUSINESS BUT CIVICALLY BEING INVOLVED IN HELPING... |
| 01:22:46 |
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SENATOR IT DOESN'T IMPORTANT AND THE QUESTION WE COULD PROBABLY SPEND AN ENTIRE HEARING TALKING ABOUT... |
| 01:26:30 |
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THANK YOU VERY MUCH AND JUST ON THAT POINT SENATOR CORKER RAISE, I THINK THERE IS UNANIMITY IN THAT... |
| 01:27:03 |
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I JUST WANT TO PICK UP ON SOMETHING SENATOR ISAKSON BROUGHT UP. YOU HAVE TO CORRELATE THIS WITH HOUSING.... |
| 01:27:51 |
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SENATOR TESTER. |
| 01:27:53 |
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THANK YOU MR. SENATOR. A COUPLE THINGS. WELCOME SENATOR DONOVAN. YOU LISTED A NUMBER OF THINGS THE... |
| 01:28:15 |
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THE INCOME LIMITS WITHIN THE HOMEOWNERSHIP? |
| 01:28:17 |
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THIS WILL EXTEND IT NOT ONLY FOR FIRST-TIME HOMEBUYERS FOR EVERYBODY A 300,000-DOLLAR CAP INTO JUNE... |
| 01:28:30 |
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WE HAVE NOT AND AS I SAID EARLIER, WE BELIEVE WITHIN A FEW WEEKS, WE WILL HAVE SUFFICIENT DATA TO... |
| 01:28:45 |
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YOU HAVE BEEN IN THE HOUSING BUSINESS FOR A WHILE YOURSELF AND I GUESS MY QUESTION IS, WITH THIS TAX... |
| 01:29:08 |
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I BELIEVE THAT, GIVEN THE DECLINE THAT WE HAVE BEEN THROUGH, I THINK THE LIKELIHOOD THAT THE CREDIT... |
| 01:29:56 |
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THE TAX CREDIT GOES TO THE HOMEBUYER. AND I IS NOT GOING TO QUIST YUAN MARK TO MARKET BUT I'M GOING... |
| 01:30:22 |
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I BELIEVE THAT ONE OF THE REAL NEGATIVE IMPACTS AND I AGREE WITH SENATOR ISAKSON ON THIS, IS THAT... |
| 01:31:07 |
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DOESN'T THAT SITUATION EXISTS ALMOST ENTIRELY WITH FOLKS IN |
| 01:31:13 |
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NO. IN FACT, GIVEN THE PRICE DECLINES THAT HAVE HAPPENED IN CALIFORNIA, THEY HAVE BEEN CONCENTRATED... |
| 01:31:41 |
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HOW WELL DOES THE REGIONAL PROGRAM WORK IN RURAL AMERICA? DO YOU THE BENNIE NUMBERS THAT INDICATE... |
| 01:31:49 |
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THE TAX CREDIT PROGRAM? |
| 01:31:51 |
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THE ORIGINAL ONE FOR FIRST-TIME HOMEBUYERS. |
| 01:31:54 |
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GENERALLY SPEAKING WE DO NOT HAVE DETAILED NUMBERS. AS I SAID EARLIER WITHOUT GETTING THE ACTUAL TAX... |
| 01:32:31 |
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I HAVE HEARD FROM A NUMBER OF LENDERS AND APPRAISERS AND REALTORS AND HOMEBUYERS THAT THERE IS A FRUSTRATION... |
| 01:33:24 |
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NOT ONLY HAVE I HEARD OFTEN ABOUT ISSUES WITH HVCC, WE ARE ACTUALLY TAKEN SOME ACTION ON THAT. WE... |
| 01:34:31 |
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WHEN DID YOU DO THAT? |
| 01:34:33 |
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I DON'T HAVE AN EXACT DATE IN MY MIND BUT WITHIN THE LAST FEW WEEKS. |
| 01:34:37 |
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THANK YOU VERY MUCH. THANK YOU SENATOR-- SHERMAN. |
| 01:34:43 |
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I HAVE SO MANY QUESTIONS I DON'T KNOW WHERE TO BEGIN. FIRST OF ALL, ON THE GSE IN THE HOUSING MARKET,... |
| 01:34:59 |
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ESPECIALLY FANNIE AND FREDDIE? |
| 01:35:02 |
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WE HAVE BEGUN THE PROCESS WITHIN THE ADMINISTRATION TO LOOK AT THAT. WE HAVE LAID OUT A SET OF OPTIONS... |
| 01:35:11 |
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SECRETARY DAWE NOTHING THE GSE'S SAID BEEN IN TROUBLE FOR FOUR YEARS. IF YOU ARE JUST LOOKING AT IT... |
| 01:35:28 |
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SENATOR, I WOULD SAY THERE HAVE OBVIOUSLY BEEN SUBSTANTIAL CONCERNS AND PROBLEMS WITH THE GSE'S, BUT... |
| 01:35:39 |
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WE OWN THEM, THAT IS WHY. |
| 01:35:43 |
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THEY ARE PROVIDING TODAY, OR HELPING TO PROVIDE ABOUT TWO-THIRDS OF ALL THE MORTGAGE FINANCING TODAY.... |
| 01:35:49 |
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SECRETARY YOU KNOW THE UNITED STATES TAXPAYERS ON THEM. SO IT IS TAXPAYERS' MONEY. |
| 01:36:00 |
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I UNDERSTAND, AND I BELIEVE THAT THIS ADMINISTRATION HAS TAKEN RESPONSIBLE ACTIONS TO ENSURE BOTH... |
| 01:37:17 |
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THE TAXPAYERS' MONEY. |
| 01:37:19 |
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BY UNDERSTAND THAT -- |
| 01:37:24 |
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SO WE ARE FINANCING OUR OWN BAILOUTS THROUGH GSEs THROUGH THE TAX PAYER, PERIOD. THAT'S ALL THERE... |
| 01:38:07 |
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AS I EXPLAINED EARLIER, WE BELIEVE IT'S CRITICALLY IMPORTANT, AS I BELIEVE WE'VE HEARD FROM THIS COMMITTEE,... |
| 01:38:20 |
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DON'T YOU THINK THE PEOPLE OF HERE DO, TOO? |
| 01:38:25 |
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I AGREE. THERE IS AT THIS POINT -- AND WE HAVE BEEN TALKING REGULARLY TO LENDERS IN THE MARKET ABOUT... |
| 01:39:06 |
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WE FEEL THAT WE ARE -- WE WOULD NOT HAVE MADE THE PROPOSAL THAT HAS BEEN MADE IF WE DIDN'T FEEL THAT... |
| 01:40:57 |
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SENATOR, AS I SAID EARLIER, I BELIEVE STRONGLY THAT WE HAVE A SET OF INSTITUTIONS THAT WERE NONTRADITIONAL... |
| 01:41:13 |
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DID YOU JUST LISTEN TO WHAT I SAID? |
| 01:41:16 |
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I DID, SIR. |
| 01:41:18 |
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WHAT DID I SAY BUT THE FEDERAL RESERVE? WE PASSED THE LAW THAT SAID YOU ARE RESPONSIBLE FOR EVERY... |
| 01:42:29 |
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I WANT TO GET TO MY FRIEND SENATOR MERKLEY. I GAVE THE SPEECH CENTER BOMBING DID PROBABLY A THOUSAND... |
| 01:43:15 |
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THANK YOU FOR A MUCH, MR. CHAIR AND MR. SECRETARY. ONE OF THE THINGS YOU NOTED IN YOUR TESTIMONY WAS... |
| 01:43:55 |
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I BELIEVE IT WILL ALLOW THAT IN THE FIRST PHASE. WE ARE STILL DECIDING ON THE FINAL AMOUNT THAT WE... |
| 01:44:07 |
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I WANT TO COMPLIMENT YOU AND THE DEPARTMENT FOR PUSHING FORWARD WITH THAT PORTAL. JUST THIS WEEKEND... |
| 01:44:46 |
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THANK YOU. |
| 01:44:50 |
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YOU NOTED YOUR COMMENTS THAT BECAUSE YOU HAVE A RESPONSIBLE BLOWN DESIGN IN THE FHA PROGRAM THAT FORECLOSURES... |
| 01:45:13 |
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YES, IT DOES. |
| 01:45:15 |
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THANK YOU. AND THAT'S AN EXPECTATION THAT WILL CONTINUE INTO THE FUTURE? |
| 01:45:21 |
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ABSOLUTELY. |
| 01:45:24 |
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I WANT TO ASK YOU THE COMMENT THAT I ASKED TO SENATOR ISAACSON, THE QUESTION I ASKED TO HIM A LITTLE... |
| 01:46:24 |
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IN FACT HAS A CANDIDATE, SENATOR OBAMA TALKED ABOUT THE NEED TO ENSURE THE MORTGAGE INTEREST DEDUCTION... |
| 01:47:10 |
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I CERTAINLY WOULD APPLAUD YOUR DEPARTMENT TO LOOK AT THAT AND I RECALL A STUDY THAT LOOKED AT HOMEOWNERSHIP... |
| 01:48:43 |
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FIRST OF ALL, SENATOR LET ME SAY THAT I APPRECIATE YOUR RAISING THAT POINT. AS I SAID EARLIER, I THINK... |
| 01:50:53 |
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THANK YOU. |
| 01:50:55 |
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SENTER MERKLEY, THANK YOU VERY MUCH. I WAS AND WITH SENATOR MERKLEY A FEW DAYS AGO AND WE HAD A WONDERFUL... |
| 01:54:02 |
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THANK YOU SENATOR DODD, SENATOR SHELBY AND THE MEMBERS TO TESTIFY TODAY. MY NAME IS DIANE .., THE... |
| 02:00:27 |
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THANK YOU, DIANA. WE APPRECIATE YOUR TESTIMONY AND PRESENCE TODAY. WE WILL BEGIN WITH MR. PHIPPS. |
| 02:00:34 |
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GOOD MORNING, CHAIRMAN OF, RANKING MEMBER SHALL BE AND MEMBERS OF THE COMMITTEE FOR INVITING ME TO... |
| 02:06:53 |
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THANK YOU VERY MUCH, MR. PHIPPS AND WE HOPE THE NEXT TIME YOU TESTIFIED YOU WILL BE MORE CERTAIN ABOUT... |
| 02:07:03 |
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I TEND TO EQUIVOCATE. [LAUGHTER] |
| 02:07:05 |
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MR. BRINKMANN. |
| 02:07:06 |
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GOOD MORNING. THANK YOU, DAVID. WHENEVER I ASKED WHEN THE HOUSING MARKET WILL RECOVER I EXPLAIN THE... |
| 02:12:33 |
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THANK YOU VERY MUCH AND THANK YOU FOR THE SUGGESTIONS ON GSEs. I WELCOME THAT AND WE HAVE HAD A HEARING... |
| 02:13:07 |
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THANK YOU, CHAIRMAN DONNER, A SENATOR SHELBY AND MEMBERS OF THE COMMITTEE. THE CURRENT HOUSING RECESSION... |
| 02:18:12 |
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THANK YOU VERY MUCH MR. CROWE, AND WE APPRECIATE YOUR COMMENTS THIS MORNING AS WELL AND WE THANK ALL... |
| 02:19:05 |
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I WOULD BE GLAD TO START. THE HOME BUILDERS BUILD RENTAL HOUSING JUST AS MUCH AS OWNER OCCUPIED HOUSING... |
| 02:19:50 |
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MR. BRINKMANN, ANY COMMENTS? |
| 02:19:52 |
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WE ARE PUSHING FOR FHA LIMITS ON MULTI FAMILY BECAUSE WE BELIEVE A LOT OF THE RETURN OF REHABILITATING... |
| 02:20:18 |
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MR. PHIPPS? |
| 02:20:19 |
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THE ONLY THING I WOULD ADD IS WE ACTUALLY HANDLES RENTALS WITH IN THE OFFICE. WE ARE A SMALL FIRM,... |
| 02:21:12 |
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WOULD YOU COMMENT ON THE -- AND DON'T KNOW IF YOU HAVE ANY THOUGHTS ON THE TAX CREDIT. I REALIZE YOUR... |
| 02:21:32 |
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THANK YOU, SENATOR DODD. WE'VE LOOKED AT ACTUALLY FUTURE DEVELOPMENT AND ALSO UNDERSTAND IT'S IMPORTANT... |
| 02:22:42 |
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NOT ONLY THAT BUT SENATOR CORKER RAISED THIS POINT AND OTHERS AS WELL, I HAPPEN TO BE ONE THAT THINKS... |
| 02:23:47 |
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THANK YOU. MR. PHIPPS, IN YOUR TESTIMONY YOU STATE THAT AFFORDABLE HOUSING GOALS MUST BE REASONABLE... |
| 02:24:35 |
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WE HAVE, SENATOR AND I THINK THE WORDS SPEAK FOR THEMSELVES. THERE IS A HUMAN COST IN ADDITION TO... |
| 02:24:49 |
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-- IN GENERAL. AND PEOPLE WHO ENTERED INTO THE INSTRUMENTS BASED THEM ON A COUPLE OF ASSUMPTIONS THAT... |
| 02:25:23 |
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THAT'S AFFORDABLE FOR PEOPLE |
| 02:25:25 |
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RIGHT. |
| 02:25:27 |
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IF YOU PAY YOUR NEVER OWNED ANYTHING. |
| 02:25:29 |
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AND OF THE MORTGAGE INSTRUMENT WAS SO SOPHISTICATED THAT INITIALLY THE PAYMENT WAS REALLY LOW AND... |
| 02:26:02 |
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DOESN'T THAT GO BACK TO BASIC FUNDAMENTAL, SOUND UNDERWRITING STANDARDS? |
| 02:26:08 |
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I THINK IT DOES. THE PROBLEM IS, SENATOR, THE UNDERWRITING REQUIREMENTS NOW HAVE BECOME REACTIONARY.... |
| 02:27:09 |
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DR. BRINKMANN, YOU HAVE A COMMENT ON THIS? |
| 02:27:13 |
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WHY WOULD SAY THAT SOMETIMES WHEN THE 50 LETTERS PERHAPS IS THEIR INTERPRETATION OF SOME NEW REGULATION... |
| 02:27:32 |
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BUT THAT IS STRICTLY A LITERAL INTERPRETATION IS NOT? AND MAYBE MORE THAN THAT IF YOU CAN GET MORE... |
| 02:28:54 |
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I WOULD SAY ULTIMATELY HOW ABSOLUTELY THE SOLUTION WILL BE WITH GROWTH OF JOB JOBS MARKET THAT A LOT... |
| 02:29:34 |
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I WOULD ADD TO THAT ONE OF THE OF BENEFITS OF THIS FIRST-TIME HOME BUYER TAX CREDIT AND HOPEFULLY... |
| 02:30:07 |
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SENATOR, THE ONLY THING I WOULD ADD IS THAT IN ADDITION TO GOOD UNDERWRITING STANDARDS AND TO STABILIZE... |
| 02:30:19 |
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USE IT STABILIZE PRICES. DOESN'T THE MARKET BASICALLY STABILIZE -- SYCOPHANT WHAT IF THERE WERE NO... |
| 02:30:44 |
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GSE REFORM, I TALKED ABOUT IT BEFORE, SOME OF YOU WERE HERE. DR. BRINKMANN, IN YOUR STATEMENT TO STATE... |
| 02:31:37 |
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I WILL ANSWER THE SECOND PART FIRST WE THINK IT NEEDS TO BE DONE -- WE THINK WE HAVE GOOD IDEAS. ... |
| 02:31:47 |
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VERY MUCH. |
| 02:31:49 |
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-- TO THE EXTENT IT'S TIED UP WITH THE REST OF THE REGULATORY REFORM. BUT AS TO HOW THAT FITS ITSELF... |
| 02:32:47 |
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I WANT TO TURN TO THE IBM RANDALL AND ASK YOU TO COMMENT ON HOW THE CHANGING TAX CREDIT MARKET FOR... |
| 02:33:00 |
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THANK YOU VERY MUCH. I WILL REFER TO MY EXPERIENCE ON THE BOARD OF DIRECTORS FOR THE CONNECTICUT HOUSING... |
| 02:34:09 |
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AM I RIGHT THINKING THE MARKET FOR TAX CREDITS DROPPED ABOUT 20% OR SOMETHING CLOSE TO THAT? |
| 02:34:15 |
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I BELIEVE THAT IS PROBABLY CORRECT. I KNOW THAT THE PHRASE ON THE TAX CREDITS HAS CHANGED DRAMATICALLY.... |
| 02:34:52 |
|
LET ME TURN TO THE SECTION 8 RENTAL VOUCHERS. I BELIEVE THAT YOUR TESTIMONY YOU CALLED UPON NOT ONLY... |
| 02:35:11 |
|
WELL, SECTION 8 AS YOU KNOW HAS BEEN AN INCREDIBLY SUCCESSFUL PROGRAM SERVING THE ELDERLY PEOPLE AND... |
| 02:36:14 |
|
MR. PHIPPS, I WANTED TO TURN TO YOU AND YOU HAD MADE COMMENTS ABOUT THE APPRAISAL PROCESS AND THE... |
| 02:36:34 |
|
SENATOR, I PREFACE THIS CONVERSATION BY SEEKING MY GRANDFATHER WAS AN APPRAISER, MY MOTHER WAS AN... |
| 02:38:09 |
|
THANK YOU VERY MUCH. I WOULD CERTAINLY BE INTERESTED IN SEEING THE ADDITIONAL MATERIAL YOU'RE REFERRING... |
| 02:38:19 |
|
THANK YOU. MR. PHIPPS, MR. BRINKMANN, MR. CROWE. YOUR ORGANIZATIONS ALL WERE FLYING VERY HIGH, VERY,... |
| 02:39:48 |
|
SENATOR, IT'S -- DOWN PAYMENT IS ONE OF THE FACTORS THAT IS CONSIDERED, SO YOU ALSO HAVE TO LOOK AT,... |
| 02:39:56 |
|
I THINK -- |
| 02:39:58 |
|
PERHAPS -- |
| 02:40:01 |
|
LET'S ASSUME ALL OTHERS. IN OTHER WORDS, I'M TRYING TO GET TO THE BASIS BY WHICH YOU SELL A HOUSE... |
| 02:40:54 |
|
MY BACKGROUND FOR THIS WAS CREDIT MODELING. ONE OVER THE FACTORS WE SAY IS THAT DOWN PAYMENT IS IMPORTANT... |
| 02:41:34 |
|
26 PAGES WORTH OF PAPERWORK TO GET A MORTGAGE. |
| 02:41:39 |
|
WELL, AND HOW THAT IS -- |
| 02:41:41 |
|
THAT WASN'T ENOUGH? |
| 02:41:42 |
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-- WHETHER OR NOT THAT BORROWER KNEW OR DIDN'T KNOW THAT IF THEY CONTINUED TO MAKE THIS MINIMUM PAYMENT... |
| 02:41:52 |
|
THAT'S BECAUSE THEY DIDN'T BUT ENOUGH MONEY DOWN ON THE HOUSE, AND THE HOUSE DEVALUED BY 30%. THOSE... |
| 02:42:17 |
|
THERE WERE A NUMBER OF THINGS THAT I THINK I SHOULD HAVE ANTICIPATED AND THE INDUSTRY SHOULD HAVE... |
| 02:42:32 |
|
ALL OF THE ABOVE. |
| 02:42:34 |
|
ALL THE VARIOUS THINGS WORKED FOR A SMALL SLIVER OF BORROWERS, BUT THERE WAS BREAKDOWN OF THE MACRO... |
| 02:42:55 |
|
AND WHEN THEY CLAL -- COLLATERALIZED THE LOANS, NOBODY KNEW WHO OWNED THE LOAN. ALREADY PHIPPS, WHAT... |
| 02:43:15 |
|
WE HAVE A GROUP OF ECONOMISTS MEETING LATER HERE IN DC TO IDENTIFY CHOICES. WE BELIEVE THAT A SUSTAINABLE... |
| 02:43:42 |
|
SOUNDS LIKE MR. DONOVAN'S EXPLANATION OF THE NEW PROPOSED LEGISLATION THEY DIDN'T KNOW WAS GOING TO... |
| 02:43:50 |
|
ACTUALLY, SENATOR, THE GROUP HAS BEEN MEETING FOR ALMOST A YEAR AT THIS POINT, AND WE'RE TRYING TO... |
| 02:44:06 |
|
I WOULD APPRECIATE THAT VERY MUCH. |
| 02:44:10 |
|
THANK YOU. |
| 02:44:11 |
|
MR. CROWE, WHEN WILL THE HOUSING MARKET BE ABLE TO STAND ON ITS OWN WITHOUT GOVERNMENT SUBSIDIES?... |
| 02:44:19 |
|
WHEN THE CONSUMER DECIDES TO COME BACK INTO THE MARKET PLACE, SENATOR. |
| 02:44:23 |
|
WHEN WILL THAT BE? |
| 02:44:25 |
|
I DON'T THINK WE WILL BE BACK TO WHAT I WOULD CONSIDER TO BE FULL EQUILIBRIUM -- |
| 02:44:35 |
|
WHEN ARE WE GOING TO MILDZ 800,000 HOMES AGAIN. |
| 02:44:39 |
|
LATE 2012. |
| 02:44:40 |
|
LATE 2012. WHAT WILL THE UNEMPLOYMENT RATE IN THE UNITED STATES BE BY THAT TIME? |
| 02:44:45 |
|
UM, IT MAY TAKE THAT LONG BEFORE IT'S BACK DOWN TO WHAT WE WOULD -- |
| 02:44:51 |
|
WE'RE AT 11-1/2% IN KENTUCKY, GOING TO 13. MICHIGAN IS AT 15% GOING HIGHER. THE UNITED STATES IS AT... |
| 02:45:05 |
|
THAT'S WHY IT WILL TAKE SO LONG FOR THE HOUSING RECOVERY TO OCCUR. |
| 02:45:11 |
|
IN OTHER WORDS, THE GOVERNMENT SUBSIDIES HAVE TO CONTINUE UNTIL THAT TIME. |
| 02:45:15 |
|
I DIDN'T SAY THAT. |
| 02:45:17 |
|
NO. WE'RE ASKING FOR ONE-YEAR EXTENSION. WE FEEL LIKE THAT'S ENOUGH TO GET THE BALL ROLLING. |
| 02:45:25 |
|
TO THE END OF 2010? |
| 02:45:27 |
|
TO THE -- TO THE SAME DATE 2010, TO DECEMBER 1, 2010. |
| 02:45:32 |
|
OKAY. THAT'S ALL I HAVE FOR NOW. THANK YOU. |
| 02:45:36 |
|
THANK YOU VERY MUCH, SENATOR. BEFORE WE SHUT DOWN THE HEARING, I WANTED TO ASK A QUESTION, MR. BRINKMANN,... |
| 02:46:27 |
|
THE KEY DIFFERENCES ARE IN TERMS OF HOW MANY. TWO IS TOO FEW. 25 IS PROBABLY TOO MANY. OUR VISION... |
| 02:48:20 |
|
TO MAKE SURE I UNDERSTAND YOU'RE POINT, YOU'RE SAYING RATHER THAN HAVING AN IMPOLICE SIT GUARANTEE,... |
| 02:48:42 |
|
AND EXPLICITLY PAID FOR. THEY WOULD PAY FOR THE GUARANTEE AS WELL AS PAYING INTO THE FUND. |
| 02:48:51 |
|
PREMIUM PENALTIES. |
| 02:48:52 |
|
THANK YOU VERY MUCH. AND THANK YOU TO ALL THE WITNESSES FOR YOUR PRESENTATIONS. I APPRECIATE IT A... |
NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.
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