Washington Digest: House votes to eliminate mortgage relief program
WASHINGTON -- The House voted last week to eliminate a mortgage relief program the Obama administration established nearly two years ago to help homeowners avoid foreclosure.
House Republicans argued that the Home Affordable Modification Program has failed to deliver as promised and abolishing it would save $1.4 billion.
Most House Democrats said the program should be repaired rather than eliminated.
The administration had predicted between 3 million and 4 million homeowners would receive mortgage modifications through the program but only 550,000 modifications have been completed at a cost of $840 million, according to the Congressional Budget Office.
"Put an end to the poster child for failed federal foreclosure programs," said Rep. Judy Biggert, R-Ill.
The program "could use a healthy dose of reconsideration and improvement" but simply repealing foreclosure relief programs would harm homeowners and neighborhoods, said Rep. Michael Capuano, D-Mass.
"This program, short of what we had hoped, it still helped 550,000 homeowners to keep their homes," Capuano said. "More owner-occupied homes than exist in at least 17 different states."
The House voted, 252-170, to approve the bill.
Reps. Shelley Berkley, D-Nev., and Dean Heller, R-Nev., voted to kill the mortgage aid program. Rep. Joe Heck, R-Nev., opposed the proposal.
FAA reauthorization bill passes
The House approved a Federal Aviation Administration reauthorization bill that President Barack Obama has threatened to veto over labor and safety issues, and subsidies for flights to remote communities.
The Obama administration said phasing out the Essential Air Service Program, which provides payments to airlines that service low traffic far-flung destinations, would degrade safe and efficient air traffic operations. They also complained provisions in the bill would make it more difficult for railroad and airline workers to unionize.
The Senate already has approved a separate FAA reauthorization bill. The two chambers will have to designate negotiators to resolve the differences in a conference committee.
The bill passed the House, 223-196. Heck and Heller favored the bill. Berkley opposed it.
An amendment that would have made it easier for railroad and airline workers to unionize was defeated, 220-206. Berkley favored it. Heck and Heller opposed the amendment.
Contact Stephens Washington Bureau reporter Peter Urban at purban@reviewjournal.com or 202-783-1760.
