Around Indiana 

IACED is proud to be a member of the Indiana Coalition of Human Services (ICHS).  In the coming weeks, IACED will be attending a series of public policy forums organized by ICHS. The agenda includes:

• Topics for the 2012 General Assembly

• Conversation with local legislators about 2012 session and human services (Bipartisan representatives of local legislative delegations have been invited by ICHS to offer their perspectives and legislative forecasts.)

• Question and Answer Time to discuss:  1) unintended consequences of legislation passed by the Indiana General Assembly in 2011, 2) the latest developments from the General Assembly's interim study committees, and 3) administrative actions affecting your human services programs

Remaining Fall Forums are scheduled as follows:

• 11/3, 9 am-11:30 am EDT - Indianapolis, United Way Building, 3901 N. Meridian St., RCI Rm

• 11/4, 9 am-11:30 am EDT - South Bend, Charles Martin Youth Center, 802 Lincoln Way West

Across the Nation 

White House Modifies its Mortgage Refinancing Program

The Obama administration recently announced its newest attempt to stem the tide of foreclosures and help responsible borrowers with underwater home loans refinance with changes to their Home Affordable Refinance Program (HARP). 

The President is touting the program's streamlined requirements that include removing a provision that excluded borrowers from the program if the amount owed on their loan was more than 25 percent greater than their home's value as a means to double number of homeowners served by HARP.   Mortgage Bankers and other industry advocates expressed hope that this move will entice more private lenders to participate in the program.  To read the full blog post that includes program specifics, click here.

The Department of Education released a report in September  showing the national two-year loan default rate increased to 8.8 percent in FY2009, 1.8 percent higher than in FY2008.  The increases were most common among students borrowing from the government to attend for-profit institutions (15 percent of defaults, up from 11.6 percent in FY08).  The report found that of the 3.6 million borrowers that entered repayment during this time frame, 320,000 defaulted.

 In Indiana, 91,443 borrowers entered repayment during the study's time frame; of those, 7,736 (or 8.45 percent) are in default. Through a press release on the report, Department of Education officials noted that they have introduced a new program offering flexible loan repayment options and have taken steps against misleading or overly aggressive recruiting practices to reduce further instances of default.  To read more about the study, click here for the Department of Education's press release or here for the full IACED blog post. 

House of Representatives Holds Hearing on New Mortgage Finance Legislation 

On October 13, the House Financial Services Committee held a hearing to discuss legislation introduced by Rep. Gary Miller (R-CA) to merge Freddie Mac and Fannie Mae, currently Government-Sponsored Enterprises, into a single government-owned entity.  The legislation, H.R. 2413, was coauthored by Rep. Carolyn McCarthy (D-NY) and endorsed by the National Association of Realtors (NAR).    

Freddie and Fannie were established to help expand affordable homeownership and provide stability to the housing finance market; but market instability in 2008 forced the two mortgage giants into conservatorship.  Even in this state, the companies were able to provide solid capital when private companies dramatically reduced the capital they offered for secondary mortgage products.  This legislation is an alternative to full privatization models also introduced in legislation and would still allow the government to play a role in backing the secondary market. 

Community development advocates urged lawmakers to include a mechanism in the bill that would fund the National Housing Trust Fund.  This provision was passed in legislation passed right before the companies went into conservatorship, which meant the companies never made any contributions.  To read more on this bill or the hearing, click here to read the IACED full blog post, or click here for video of the hearing. 

House of Representatives Committee Moves Bill That Strips McKinney-Vento Title V

On October 13, the House Committee on Transportation and Infrastructure marked up H.R. 1734, the Civilian Property Realignment Act.  The bill was authored by Representative Jeff Denham (R-CA) and seeks to create a panel to make decisions on the disposal of surplus federal properties.  Housing advocates reached out to the Committee early on to express concern that the proposed panel did not require input from homeless providers.

When the bill went to mark up, however, Rep. Denham clarified in a substitute amendment that federal surplus properties would no longer be subject to Title V of the McKinney-Vento Act, which states that homeless shelter providers have preference in acquiring such excess property.      

Representative Nick Rahall (D-WV) and Delegate Eleanor Holmes-Norton (D-DC), expressed opposition and attempted to strike the amendment, but those efforts failed in a roll call vote.  Rep. Denham's substitute language was accepted, but he expressed a desire to work with Delegate Norton to craft a provision addressing the needs of the homeless before the bill goes before the House Committee on Oversight and Government Reform or the full House for a vote.  Stay tuned to the IACED blog for more updates on this legislation.