On the recordJune 10, 2014
Madam Chairman, I thank my friend from Michigan for yielding. I rise to ask for support for our amendment to stop unnecessary foreclosures and ensure oversight of HUD's Distressed Asset Stabilization Program, the DASP. When the Nation's largest banks sell delinquent FHA-insured loans into DASP the taxpayers have to pay the outstanding balance on the loan. HUD turns around and sells the loans at deep discounts to private investors. Many times banks don't comply with the law, and FHA inappropriately pays out claims. This is not an insignificant issue. HUD has sold more than 70,000 of these mortgages in the past 3 years. Despite ongoing efforts to improve the program, HUD has not exercised sufficient oversight in this matter. Our amendment would help ensure more rigorous oversight of the DASP so that only loans that have met all of HUD's loss mitigation requirements are sold through this DASP program.
