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Senate Proceeding 06-07-11 on Jun 7th, 2011 :: 3:21:29 to 3:39:31
Total video length: 3 hours 39 minutes Stream Tools: Stream Overview | Edit Time

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Jerry Moran

3:21:15 to 3:21:29( Edit History Discussion )
Speech By: Jerry Moran

Jerry Moran

3:21:16 to 3:21:29( Edit History Discussion )

Jerry Moran: can find a job and provide for their families. in a recent survey, 90% of americans said that the economy is in bad shape and that by a margin of two to one, americans said our economy is on the wrong track. i couldn't agree more.

Harry Reid

3:21:30 to 3:21:34( Edit History Discussion )
Speech By: Harry Reid

Harry Reid

3:21:30 to 3:21:35( Edit History Discussion )

Harry Reid: changing the course of our economy will require washington, d.c. changing its course.

Jerry Moran

3:21:35 to 3:26:44( Edit History Discussion )
Speech By: Jerry Moran

Jerry Moran

3:21:36 to 3:21:56( Edit History Discussion )

Jerry Moran: instead of creating barriers to job growth, congress and the obama administration should be implementing policies that encourage job creation. history shows that sustainable economic growth starts with the private sector, so congress and the administration have a responsibility to create an environment where businesses can flourish and start hiring again

Jerry Moran

3:21:57 to 3:22:17( Edit History Discussion )

Jerry Moran: and that that starts by pursuing a series of progrowth policies. first, in my view, congress must rein in government regulation and stop passing burdensome mandates that come at the expense of that job creation. as i tour manufacturing plants and other businesses in my home state of kansas, owners often ask, what's the next thing

Jerry Moran

3:22:18 to 3:22:38( Edit History Discussion )

Jerry Moran: coming from washington that will put me out of business? jobs in this countries are undercut with each new government regulation because it drives up the cost of doing business, erodes our global competitiveness and limits the access to credit that businesses need to grow. rather than hiring new employees, businesses are spending their resources on

Jerry Moran

3:22:39 to 3:23:02( Edit History Discussion )

Jerry Moran: complying with these burdensome regulations and costly mandates from the e.p.a.'s effort to regulate carbon to the mandates imposed by the new health care law. according to the small business administration, the smallest businesses -- those with less than 20 employees -- spend 36% more per employee than larger firms to comply with federal regulations.

Jerry Moran

3:23:03 to 3:23:24( Edit History Discussion )

Jerry Moran: that's roughly 10,585 dollars per employee to imply with all regulations, and very small firms are even burdened more per employee. small business is the backbone of the american economy. those businesses employee half of our private-sector workers and generated 65% of new jobs over the last 20 years.

Jerry Moran

3:23:25 to 3:23:45( Edit History Discussion )

Jerry Moran: so it makes no sense to drive up their operating cost with additional government regulations because that leaves them with fewer resources to hire new workers. second, congress can spur economic growth by replacing our convoluted and burdensome tax code with one that is fair, simple and certain. when businesses know what to expect, they can better plan for

Jerry Moran

3:23:46 to 3:24:06( Edit History Discussion )

Jerry Moran: future expenses and will invest in their companies for growth and will hire new workers. unfortunately, congress is often too shortsighted when it comes to tax policy. a year or two extension of tax cuts do not give businesses the certainty they need to plan for that future. employers have to make decisions about the future of their

Jerry Moran

3:24:07 to 3:24:27( Edit History Discussion )

Jerry Moran: business today, and given the fact that their taxes will rise in the near future they are reluctant to hire new workers or expand their business f. we're serious about creating jobs in this country, we have to give our country's job creators the ability to plan for the future and a tax code that encourages investment. third, congress must open foreign markets for american

Jerry Moran

3:24:28 to 3:24:48( Edit History Discussion )

Jerry Moran: manufactured goods and agricultural products. across the country, thousands of americans depend upon exports for jobs including more than one-quarter of all manufacturing workers in kansas. by increasing our nation's exports we will create jobs and opportunities for all americans without raising taxes or increasing the federal budget.

Jerry Moran

3:24:49 to 3:25:09( Edit History Discussion )

Jerry Moran: we should be exporting our manufactured goods and agriculture products, not our jobs. unfortunately, trade agreements with colombia, panama and south korea, for example, have been stalled for four years, and each day that passes we risk losing more of our market share to our competitors. during this delay, colombia's moved forward on trade deals

Jerry Moran

3:25:10 to 3:25:31( Edit History Discussion )

Jerry Moran: with canada, with chill sperbgs with the european union, brazil and arch jean in a. -- argentina. we cannot afford to sit on the sidelines while other countries continue to move forward in their trading relationships with our trading partners. together the trade agreements with colombia, panama and south

Jerry Moran

3:25:32 to 3:25:52( Edit History Discussion )

Jerry Moran: korea are worth an estimated $13 billion in u.s. exports. the agreement with korea alone is worth $11 billion and would create an estimated 70,000 new jobs for americans. it is past time for the president to send congress implementing phrapblg for these trade -- language for these trade agreements so we can open more markets for american goods and agriculture commodities.

Jerry Moran

3:25:53 to 3:26:14( Edit History Discussion )

Jerry Moran: when american businesses are given the opportunity to compete on a level playing field for these markets, they will succeed and more jobs will be created here at home. fourth, the u.s., to remain competitive in the global market, must develop a comprehensive energy policy that allows for ample energy supply that is both affordable and reliable.

Jerry Moran

3:26:15 to 3:26:36( Edit History Discussion )

Jerry Moran: rising gas prices and recent events in the middle east have again demonstrated that the importance of having access is to a reliable energy supply. higher energy prices are not only threatening our global competitiveness, they are also hampering our economic recovery. i don't know how we can expect our economy to recover when energy prices are what they are. but when employers have access

Jerry Moran

3:26:37 to 3:26:44( Edit History Discussion )

Jerry Moran: to reliable energy supplies, they can spend their resources on hiring new workers rather than on those escalating energy costs.

Harry Reid

3:26:45 to 3:26:49( Edit History Discussion )

Harry Reid: in my view, no single form of energy can provide the answer to meet our country's energy needs

Harry Reid

3:26:45 to 3:26:49( Edit History Discussion )
Speech By: Harry Reid

Jerry Moran

3:26:50 to 3:27:11( Edit History Discussion )

Jerry Moran: we must develop traditional sources of oil, natural gas and coal, encourage the development of renewable energy sources such as beau fuels, wind -- biofuel and hydropower as well as encourage conservation. a report from the congressional research service found our country's resources are far greater than those of saudi

Jerry Moran

3:26:50 to 3:27:39( Edit History Discussion )
Speech By: Jerry Moran

Jerry Moran

3:27:12 to 3:27:32( Edit History Discussion )

Jerry Moran: arabia, china and canada combined. in fact, our combined recoverable oil, natural gas and coal supplies are the largest on the planet. yet, in 2009 the administration canceled 77 oil and gas leases in utah and last year suspended 61 leases in montana. the administration restricted access to oil and gas

Jerry Moran

3:27:33 to 3:27:40( Edit History Discussion )

Jerry Moran: exploration in the easten gulf of mexico and off the atlantic coast. although these two areas hold commercial oil reserves of 28

Harry Reid

3:27:40 to 3:27:44( Edit History Discussion )
Speech By: Harry Reid

Harry Reid

3:27:41 to 3:27:44( Edit History Discussion )

Harry Reid: billion barrels and up to 142 trillion cubic feet of natural gas.

Jerry Moran

3:27:45 to 3:28:05( Edit History Discussion )

Jerry Moran: more production of energy in the u.s. means more jobs in the u.s. and more u.s. workers at work. and lower energy costs for businesses and for their employees. finally, congress must reduce government spending and to bring about this economic growth. i think the debate on government spending is often seen as some

Jerry Moran

3:27:45 to 3:28:19( Edit History Discussion )
Speech By: Jerry Moran

Jerry Moran

3:28:06 to 3:28:20( Edit History Discussion )

Jerry Moran: philosophical discussion or a partisan political bickering opportunity here in washington, d.c. but the reality is out-of-control government borrowing and spending has very real consequences for the daily lives of americans. our failure to balance the

Harry Reid

3:28:20 to 3:28:24( Edit History Discussion )
Speech By: Harry Reid

Harry Reid

3:28:21 to 3:28:25( Edit History Discussion )

Harry Reid: budget will result in increased inflation, higher interest rates, fewer jobs and a lower

Jerry Moran

3:28:25 to 3:29:04( Edit History Discussion )
Speech By: Jerry Moran

Jerry Moran

3:28:26 to 3:28:46( Edit History Discussion )

Jerry Moran: standard of living for every american. but this reality has not yet sunk in here in washington, d.c. despite several recent warnings. at the end of april standard & poor's one of the world's big three credit rating agencies downgraded our future financial outlook from stable to negative. s&p says our country has large

Jerry Moran

3:28:47 to 3:29:04( Edit History Discussion )

Jerry Moran: budget deficits and rising government indebtedness and the path to addressing these is not clear. furthermore, just last week, another credit rating agency, moody's, if we needed another reminder, warned that our failure to cut the deficit could prompt them to downgrade their

Harry Reid

3:29:05 to 3:29:09( Edit History Discussion )

Harry Reid: outlook on our aaa rating to negative. without a credible agreement on substantial deficit reduction --

Harry Reid

3:29:05 to 3:29:09( Edit History Discussion )
Speech By: Harry Reid

Jerry Moran

3:29:10 to 3:29:30( Edit History Discussion )

Jerry Moran: this is moody's talking -- this could happen as soon as next month. this would have a devastating impact upon our already struggling economy. reducing our nation's debt will require us to work together to craft a serious plan. president obama's proposal to balance budgets in part by raising taxes on business in my view would only make our economic circumstances worse.

Jerry Moran

3:29:10 to 3:29:34( Edit History Discussion )
Speech By: Jerry Moran

Jerry Moran

3:29:31 to 3:29:34( Edit History Discussion )

Jerry Moran: washington does not have a revenue problem. it has a spending problem.

Harry Reid

3:29:35 to 3:29:39( Edit History Discussion )

Harry Reid: it is time for us to work together and pass a responsible budget to reduce our deficits

Harry Reid

3:29:35 to 3:29:39( Edit History Discussion )
Speech By: Harry Reid

Jerry Moran

3:29:40 to 3:30:01( Edit History Discussion )

Jerry Moran: this year, next year and far into the future. the plan should include significant spending reductions, a balanced budget amendment to restrict washington's future ability to borrow money that would put us right back in the mess that we're in today, and one that addresses our long-term unfunded mandates. as john adams once quipped,

Jerry Moran

3:29:40 to 3:31:00( Edit History Discussion )
Speech By: Jerry Moran

Jerry Moran

3:30:02 to 3:30:22( Edit History Discussion )

Jerry Moran: facts are stubborn things, and the facts tell us that washington must change our direction if we are to grow our economy and put people to work. the failed economy we are experiencing and the financial collapse around the corner is the most expected economic crisis in a lifetime. we know what is going to happen if we don't act, and it would be immoral for us to look the other

Jerry Moran

3:30:23 to 3:30:43( Edit History Discussion )

Jerry Moran: way or to kick the can down the road because the politics of these issues are too difficult to deal with. americans deserve leadership here in our nation's capital to confront these challenges and not to push them off to the next generation of americans. if we do so, if we confront these issues correctly in a responsible way, businesses will succeed, profits will be made,

Jerry Moran

3:30:44 to 3:31:00( Edit History Discussion )

Jerry Moran: employees hired and americans will again be able to live and pursue the american dream. mr. speaker, -- or, mr. president, i thank you and i a senator: mr. president? the presiding officer: the senator from georgia.

Johnny Isakson

3:31:01 to 3:31:21( Edit History Discussion )

Johnny Isakson: mr. isakson: i would like to ask unanimous consent that the quorum call be vitiated. the presiding officer: without objection. mr. isakson: mr. president, i rise to speak as if in morning business for up to ten minutes. the presiding officer: without objection. mr. isakson: i want to commend the senator from kansas, i had no idea when i came to make my remarks that they would be so in keeping with a part of his speech with regard to regulation

Johnny Isakson

3:31:05 to 3:39:25( Edit History Discussion )
Speech By: Johnny Isakson

Johnny Isakson

3:31:22 to 3:31:46( Edit History Discussion )

Johnny Isakson: and what the regulatory regimen of the current administration is doing to economic improvement and economic development in the united states of america. i rise for a moment to talk about the dodd-frank legislation, to talk about the qualified residential mortgage provision and to talk about the six regulators of financial services in a recent decision that they have made. sean donovan, ben bernanke,

Johnny Isakson

3:31:47 to 3:32:07( Edit History Discussion )

Johnny Isakson: sheila behr, edwin dimarco, john walsh and mary shapiro were challenged with carrying out and writing the rules of intent for dodd-frank. when they published a few weeks ago, about two months ago now, the proposed rule and qualified residential mortgage, it created a firestorm and created a number of speeches on the floor of the united states senate. it also created a letter from 39 members of the united states

Johnny Isakson

3:32:08 to 3:32:29( Edit History Discussion )

Johnny Isakson: senate which i would like to ask unanimous consent be included in the record. the presiding officer: without objection. mr. isakson: these 39 senators wrote specifically to these regulators to express their concern with the possible effect of the proposed regulation that the regulators were proposing on qualified residential mortgage. i am pleased to say that a few days ago the six regulators

Johnny Isakson

3:32:30 to 3:32:50( Edit History Discussion )

Johnny Isakson: extended the comment period from june 20 now to august 1. i have not talked to them but i hope it's because they have been listening to the speeches, they have been reading the comment, they have been seeing the testimony and they understand if left uncorrected and if put in place, the current rule on qualified residential mortgage will be a second hit to what is

Johnny Isakson

3:32:51 to 3:33:12( Edit History Discussion )

Johnny Isakson: already a very fragile united states housing market. mr. president, just last week, the reports from the most recent month in terms of residential home sales saw a second -- beginning of a second dip in residential housing. this morning, "the wall street journal" reported that 40% of the homes in america that contain a second mortgage or an

Johnny Isakson

3:33:13 to 3:33:33( Edit History Discussion )

Johnny Isakson: equity line of credit are now under water, 40%. one of the reasons they are is that prices are continuing to decline, and one of the reasons prices are declining is the buyers are not there, it's a sellers' market, we have too many foreclosures and too many short sales. the impact of the qualified residential mortgage amendment

Johnny Isakson

3:33:34 to 3:33:55( Edit History Discussion )

Johnny Isakson: to dodd-frank was an amendment offered by mrs. hague, ms. landrieu and myself, all with experiences in housing and the marketplace. we put it in because the original dodd-frank legislation said that people making mortgages were going to have to hold risk retention of 5% in that mortgage, which basically

Johnny Isakson

3:33:56 to 3:34:17( Edit History Discussion )

Johnny Isakson: would put most everybody in the mortgage business out of the mortgage business except a handful of people. we put in the qualified residential mortgage the specific per am terse by which a mortgage could be exempt from risk retention, which were a down payment of at least 20% or if the down payment was less than that it had to carry private mortgage insurance to

Johnny Isakson

3:34:18 to 3:34:38( Edit History Discussion )

Johnny Isakson: ensure the effect of an 80% loan. second, qualified ratios that demonstrated the couple could pay back the mortgage under any reasonable assumption. third, the house had to appraise. fourth, the creditworthiness of the individual had to demonstrate they could pay for the mortgage. those are all the reasonable underwriting criteria that

Johnny Isakson

3:34:39 to 3:35:00( Edit History Discussion )

Johnny Isakson: existed before the financial collapse of the mid 2006-2007. the rule that was proposed by the six regulators which now they have extended the come meantary time completely avoided and made no mention of the private mortgage insurance requirement and said for a qualified residential mortgage to exempt risk retention, the buyer would have to put down at least 20%.

Johnny Isakson

3:35:01 to 3:35:22( Edit History Discussion )

Johnny Isakson: mr. president, most buyers in america don't have at least 20%, and under current economic times and what's happened, they have got a lot less than that. but for years -- and i was in the housing business for 33 years -- the 90% and 95% conventional loans made in this country were the backbone of the loans that helped support the housing market, and those loans

Johnny Isakson

3:35:23 to 3:35:45( Edit History Discussion )

Johnny Isakson: required a private mortgage insurance policy on any amount of loan exceeding 80% up to 95%. we need the rule, the ultimate rule coming back from these regulators by august 1 to contain that provision so as to exempt from risk retention any mortgage that meets the underwriting criteria, including private mortgage insurance on

Johnny Isakson

3:35:46 to 3:36:06( Edit History Discussion )

Johnny Isakson: any amount above 80% and up to 95%. if we don't do it, mr. president, i want to tell you what will be the outcome, and it's without question. you will remember, mr. president, that when we got into trouble in housing, it's because we directed freddie and fannie to buy affordable housing loans which became a consumer of subprime packages that were

Johnny Isakson

3:36:07 to 3:36:27( Edit History Discussion )

Johnny Isakson: generated on wall street. subprime packages were loans that had haiku upon rates and they were made to risky borrowers. they were intended to get more people in housing, but they because we directed freddie and fannie to buy that type of paper, it created a demand for that type of paper which wall street fulfilled. so, in other words, you had a

Johnny Isakson

3:36:28 to 3:36:48( Edit History Discussion )

Johnny Isakson: premium pricing on the coupon which made the security attractive but the risk was greater because the loans were to people with less good credit. we have now gone the other way. the pendulum has swung 180 degrees the other way. with the pending rule that's being circulated upon which this commentary time has been extended, if it goes into place, you will create a 90% and 95%

Johnny Isakson

3:36:49 to 3:37:09( Edit History Discussion )

Johnny Isakson: loan being priced just like loans that were subprimer priced, because very few people will make those loans, only a few large lenders, they will price the interest rate on those loans high because of scarcity. in other words, a borrower borrowing 95% or 90% with private mortgage insurance will end up paying a premium, a premium in interest rate or

Johnny Isakson

3:37:10 to 3:37:31( Edit History Discussion )

Johnny Isakson: discount points in order to get that loan because there won't be a wide distribution or availability of that type of conventional financing. the unintended consequence of the rule being proposed, which we fortunately have got an extension on comment time, would create another ability for lenders with the capacity of retaining risk retention to price a loan at such a rate that

Johnny Isakson

3:37:32 to 3:37:52( Edit History Discussion )

Johnny Isakson: it's too high for the average consumer. the other thing it's going to do is a lot of consumers who can't get a qualified residential mortgage of 90% or 95% will be out of the housing market. what's the result of that? the result of that is an extension of what the most recent figures demonstrated -- lower demand, declining housing prices and a protracting

Johnny Isakson

3:37:53 to 3:38:14( Edit History Discussion )

Johnny Isakson: continuous of the worst housing recession in the history of the united states of america. so i come to the floor today, first of all, to say thank you to the six regulators for extending the comment period. second, to urge my colleagues, to urge the lending institutions, the real estate industry, the consumer interest groups, the housing advocacy groups to have their input with these regulators on the proposed

Johnny Isakson

3:38:15 to 3:38:35( Edit History Discussion )

Johnny Isakson: qualified residential mortgage rule, because if left unamended as it currently is proposed by the regulators, it will make affordability of housing less affordable in america, the access to conventional credit less available to america, it will decline the demand that exists already which is historically too low, it will protract the continuing decline

Johnny Isakson

3:38:36 to 3:38:56( Edit History Discussion )

Johnny Isakson: of housing values in america, and it will cause our economy to continue to slide in an even deeper, deeper depression. it is critically important that what the gentleman from kansas said be recognized. don't -- be sure that when you pass regulation, the unintended consequence doesn't cause a bigger problem than the problem

Johnny Isakson

3:38:57 to 3:39:17( Edit History Discussion )

Johnny Isakson: you're trying to correct. i admire our regulators, i appreciate the hard job we have given them to do. i appreciate the fact they have extended the comment time. i hope now they will also listen to the comments that are being made, some back and make a qualified residential mortgage rule that includes the provision for private mortgage insurance on loans in excess of 80% and no

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