Paul Sarbanes

Mr. SARBANES

Mr. SARBANES. Madam President, I move to reconsider the vote.

Mr. SARBANES. Mr. President, I am pleased to join with my colleague, the very able Senator from Nevada, Mr. Reid, in cosponsoring this amendment to the fiscal year 2002 Transportation appropriations bill which calls for a study of the hazards and risks associated with the transportation of hazardous chemicals or radioactive material on our rail and highway network. According to the U.S. Department of Transportation, more than 800,000 shipments of hazardous materials, or hazmats, occur each day on our highways, railroads, and waterways. The total volume of hazardous materials such as flammable liquids and corrosive chemicals exceeds some 3 billion tons a year. While the vast majority of these shipments are transported safely, without any release, the number of hazmat incidents reported to the Department of Transportation has nearly doubled in the past decade. As Senator Reid has already noted, last Wednesday a 60-car freight train, including several cars containing hazardous chemicals, derailed and caught fire in the Howard Street tunnel right through downtown Baltimore. The cause of the derailment and fire are still under investigation, but according to news reports, some fire officials speculate the fire started in a car carrying tripropylene, a caustic and flammable chemical used for making detergents and plastics. I take this opportunity to commend the members of the Baltimore City Fire Department for their heroic efforts in managing the fire and protecting the health and safety of the citizens of our city. For nearly 5 days, the city firefighters undertook tremendous risks, courageously entering the dark tunnel, vision impaired by smoke, to face the fire and the volatile chemicals and hazardous materials that burned within. During the height of the incident, over 150 of the city's firefighters were on the scene and many more obviously reported for duty throughout the course of this incident. The fact that injuries were kept to a minimum is a testament to the skill and professionalism with which the Baltimore City firefighters performed their jobs. I also express my appreciation to the Coast Guard Strike Force, the Maryland Department of Environment, and all the other members of the team who worked around the clock to protect public health and the environment. Firefighters' activities were largely completed last night. This morning, the last of the 60 railcars was pulled out of the tunnel. The tunnel is now free of the train and examination will now take place with respect to the structural status of this tunnel. As Senator Reid and I discussed last week on the Senate floor, this accident underscores the potential dangers to public health and safety, the environment and the economy in connection with the transportation of hazardous materials, but it also makes clear the need to invest in our Nation's infrastructure. I very much welcome the amendment of my colleague. I want to underscore this is an issue in which he has taken considerable interest. In fact, he held a hearing this morning which had been scheduled, as I understand it, well before this incident took place. Senator Reid and others who have been concerned about the infrastructure, and I know it is a concern the chairman of the Appropriations Committee, Senator Byrd, shares with us, have for quite some time tried to focus attention on the necessity to improve the Nation's infrastructure. Later in the consideration of this bill I will join with my colleague, Senator Mikulski, in offering an amendment to specifically begin to address the aging rail infrastructure in the Baltimore area. Our amendment would provide up to $750,000 in Federal matching funds for the Department of Transportation, in cooperation with Amtrak, Norfolk Southern, CSX, the State of Maryland, and the City of Baltimore, to conduct a comprehensive study to assess the existing problems in the freight and passenger rail infrastructure in the Baltimore region. The study would assess the condition, track, limitation, and efficiency of the existing tunnels, bridges, and other railroad facilities owned and operated by the railroads. It would also examine the benefits and costs of various alternatives, including shared usage of track. It would make recommendations regarding improvements to the rail infrastructure in the Baltimore region or the construction of new facilities to reduce congestion and improve safety and efficiency. The availability of the funds would be contingent upon CSX, Norfolk Southern and the State of Maryland providing equal amounts to conduct the study. Next year marks the 175th year of railroad in America commemorating the history of railroading that actually began in Baltimore with the Baltimore and Ohio Railroad. While it is an honor to have this historic commemoration, this commemoration also serves to date our railroad infrastructure in Maryland as amongst the oldest, of course, in the country. Indeed, major rail improvements made in the latter part of the 19th century, including rail corridors, bridges and tunnels, continue even to this day to serve by providing routes for significant inner- city passenger and freight traffic moving up and down the east coast, as well as providing links from the ports to the Midwest and points beyond. Two major main line corridors traverse Baltimore. Amtrak operates more than 100 trains a day through Baltimore, traversing through two sets of major tunnels, the Union tunnel and the Baltimore and Potomac tunnel, immediately northeast and southwest of Penn Station. These tunnels were built in the 1870s when the Pennsylvania Railroad extended its reach south to Washington. A second parallel Union tunnel was built in the early part of the 20th century. Amtrak's corridor is also used by MARC commuter rail trains linking Baltimore and Washington and Norfolk and Southern freight trains. While a number of improvements have been made to the corridor since the 1970s, the basic infrastructure of the route, including the tunnels and bridges over the numerous rivers north of Baltimore, is virtually the same as that in place some 75 to 100 years ago. CSX, the descendent of the original Baltimore and Ohio Railroad also operates its main line through Baltimore. The main line serves traffic traveling north and south up and down the east coast and traffic which is ultimately headed west to the Ohio River Valley. Both movements converge between Washington and Baltimore and use the main line through the latter city. It is CSX's main line which passes through Baltimore by the 1.7-mile- long Howard Street tunnel where the accident occurred on Wednesday night. Most of this was built in the 1890s on a single track. Numerous other short tunnels and bridges are also along the route north and east of the central city. The physical condition of the rail infrastructure and the mix of trains that use it cause various problems for the movement of freight and passengers. There are inadequate vertical clearances for the passage of certain types of freight since high-cube, double-stacked container trains. There are numerous chokepoints and there is capacity- related congestion on the Northeast Corridor and the CSX main line. So the purpose of this study, this additional amendment that Senator Mikulski and I will offer, is to assess these and other problems in the freight and passenger rail infrastructure in the Baltimore region, and to identify potential solutions to those problems. We need to get some sense of what the possibilities are, what the costs associated with them are, and what might be a reasonable course of action in order to address this situation. I very much hope when that amendment is offered our colleagues will be supportive of it. I do want to have printed in the Record at the end of my remarks an editorial from the Baltimore Sun about the effort of our firefighters and other authorities who responded to this emergency entitled, ``There when you need them.'' I ask unanimous consent that be printed in the Record.

Mr. SARBANES

Mr. SARBANES. Mr. President, for those of us who have supported and worked with the Eximbank, it is a loss that Jackie Clegg has chosen to leave public office at this time. We recognize, however, she has a special reason for moving on, and many of us have already extended our congratulations to Jackie and our colleague, the distinguished Senator from Connecticut, Senator Dodd, as they start a family. But I want to thank her before she leaves office for her outstanding service to the Nation through her many contributions to the work of the Export-Import Bank of the United States. Exhibit 1 Export-Import Bank of the United States Resolution Whereas Jackie M. Clegg has served with distinction as First Vice-President and Vice Chairman of the Export-Import Bank of the United States since June 17, 1997; and Recognizing, that she has spent more than eight years in a series of senior positions at the Ex-Im Bank, devoting herself to the agency's mission of supporting U.S. exporters and sustaining American jobs; and Recognizing further, that her success at the Ex-Im Bank is a logical outgrowth of her extensive U.S. Senate staff career, including more than a decade of work as a legislative assistant for foreign policy, trade, national security, banking, and appropriations issues; and Recognizing further, that she led the Bank's efforts on its reauthorization legislation in 1997, which received overwhelming bipartisan support in the Congress and has made it possible for the Bank to serve better the needs of U.S. exporters, earning her the admiration and respect of numerous Members of Congress, the Executive Branch, and the exporting community; and Recognizing further, that she demonstrated leadership and creativity as the Bank tackled critical issues such as resolving international financial challenges, balancing the need for environmental protection with promoting business opportunities, and increasing trade opportunities for small businesses, particularly those owned by women, minorities, and Americans who live in rural areas; and Recognizing further, that she devoted herself to enhancing the quality of life for the Bank's career staff through innovation and a commitment to training, advancement, and empowerment; and Recognizing further, that she has brought great credit to the Bank and succeeded in raising awareness of the agency and its mission, thereby expanding exporting opportunities for American companies and enhancing their competitiveness in the global marketplace; and Recognizing further, that her intelligence, dedication, warmth, and leadership have earned her the friendship, affection, and respect of Export-Import Bank colleagues at all levels of the agency; Now, therefore, be it resolved. That the Directors of the Bank, individually and on behalf of the entire Bank, hereby express their sincerest appreciation and thanks to Jackie M. Clegg for her distinguished service to the Bank and extend to her best wishes in all future endeavors. John E. Robson, President and Chairman. Dan Renberg, Director. D. Vanessa Weaver, Director.

Mr. SARBANES. Mr. President, I seek recognition to express a deep appreciation for the dedicated service of Jackie M. Clegg as first Vice President and Vice Chair of the Export-Import Bank of the United States. As I think many of my colleagues are aware, Jackie's 4-year term at the Eximbank will be concluding on tomorrow, July 20. As chairman of the Senate Committee on Banking, Housing, and Urban Affairs, I note our committee's gratitude and, indeed, the gratitude of the Senate for the many extraordinary contributions she has made to the Export-import Bank during her tenure. Jackie spent more than 8 years in a series of senior positions at the Eximbank, devoting herself tirelessly to the agency's mission of supporting U.S. exporters and sustaining American jobs. She first joined the Eximbank in April of 1993, served as special assistant, chief of staff and vice president for congressional and external affairs, prior to her nomination, in May of 1997, to be first Vice President and Vice Chair of the Export-Import Bank. Her exceptionally effective service at the Eximbank was a logical outgrowth of her extensive legislative staff career in the Congress. She worked for more than a decade as the legislative assistant for foreign policy, trade, and national security issues, for Senator Jake Garn of her home State of Utah, as an associate staff member to the Appropriations Committee, and later as a professional staff member on the Senate Banking, Housing, and Urban Affairs Subcommittee on International Finance and Monetary Policy. It thus came as no surprise to us in the Congress when Jackie skillfully led the bank's efforts on its reauthorization legislation in 1997. The legislation received overwhelming bipartisan support in the Congress and set the stage for the agency's excellent work on behalf of U.S. exporters during her term. We on the Banking Committee have had the benefit of Jackie's wise counsel on export and trade matters for several years. She has an acute sense of the relationship among Federal agencies, Congress, foreign governments, and the business community. In her travels on the Bank's behalf, and in her speeches, Jackie has raised awareness of the critical nature that international trade and trade finance can play in improving the lives of our citizens. Jackie has also devoted herself to improving the management of the Eximbank and its responsiveness to staff concerns. She has helped shepherd the Bank towards increased automation as a means of better fulfilling its objective of satisfying the needs of small business. She has served as both an institutional memory and a trailblazer--traits not often found in the same person. The board of directors of the Eximbank today adopted a resolution expressing its appreciation and thanks to Jackie for her distinguished service to the Bank. Mr. President, I ask unanimous consent that the resolution be printed in the Record after my remarks.

Mr. SARBANES. I thank the Senator for his comments.

Mr. SARBANES. I thank the Senator. They are still working on that problem. It has not been fully resolved yet. I received a message from Mayor O'Malley that the fire is still smoldering. But they have had terrific intergovernmental cooperation throughout in trying to address this pressing issue. We are hopeful that it will be resolved soon. The tunnel is a mile and a half long, and so they are pulling these cars out of the tunnel--decoupling them and pulling them out. So that process is still underway, but we hope it can be carried through to completion without worsening of conditions.

Mr. SARBANES. The other thing--if the Senator will yield for a minute--I think it points out the need for us to make investment in our Nation's infrastructure. We have been trying for a long time to get a real commitment at the Federal level, to be matched at the State and local level, for operating infrastructure. I think it is something we need constantly to keep in mind and not lose sight of. We are making a number of these budget priorities, including sweeping tax cuts, for example, and at the same time all across the country we are being challenged by major needs in terms of the Nation's infrastructure. This is an obvious instance of transportation infrastructure and communications. I hope we will be able to come to grips with that issue and make a major national commitment with respect to upgrading the Nation's infrastructure.

Mr. SARBANES. I commend the Senator for that initiative. I think it is extremely important. I think we have to get across the understanding that these public investments in infrastructure are essential to the private sector activity. In other words, there is a relationship between making available a first-class public infrastructure--for example, transportation--and the ability then of the private sector to efficiently carry out its business. I think we need to perceive it in those terms because people come out and say you are just talking about making a public expenditure, but this is a public expenditure with wide-ranging consequences and implications for the effective working of the private sector of the economy.

Mr. SARBANES. That is right.

Mr. SARBANES

Mr. SARBANES. Mr. President, I suggest the absence of a quorum.

Mr. SARBANES. Mr. President, I want to speak briefly with respect to the nomination of Roger W. Ferguson to the Board of Governors of the Federal Reserve System. I understand later today at the appropriate time we will be taking up the Ferguson nomination. As I understand it that will be after the Graham nomination. This seems an opportune time to take a moment or two because, presumably, at the time we vote people may be in somewhat of a hurry to draw our business to a conclusion. The nomination of Roger Ferguson was reported out of the Banking Committee on July 12 with one dissenting vote in the committee. He is currently a member of the Federal Reserve Board. This would be for another term on the Board, a reappointment. He was nominated for another term by President Clinton in 1999, but action was not taken on that nomination so it simply remained pending, although he continued under the applicable rules that govern membership on the Board of Governors, to serve on the Board. In the first part of this year, President Bush resubmitted his nomination to the Senate for membership on the Board of Governors of the Federal Reserve System for a term of 14 years, which is the standard term for members of the Board of Governors. I simply want to say to my colleagues that we think Mr. Ferguson has done a fine job as a member of the Board of Governors of the Federal Reserve System. He has assumed a number of areas of prime responsibility in the workings of the Board. We think of the Board primarily in terms of its monetary policy decisions, but of course the Board has a whole range of other responsibilities that affect the financial system of the country. There are many day-to-day responsibilities. Roger Ferguson has been an integral part of the Board's activities. He is spoken of very highly by those who watch the Board and by the members of the Board themselves, including the Chairman. He has also assumed a special responsibility to work on the question of diversity in the Federal Reserve System in terms of its employment and membership practices. In fact, at his hearing we asked him some questions on that subject on the basis of a communication we had received from members of the minority caucuses in the House of Representatives. He was quite forthcoming in his responses and underscored the effort they were making in this area at the Federal Reserve. In response to these questions, he undertook to once again carefully review and examine Board policy and to intensify their efforts to ensure more diversity in the workings of the Federal Reserve System. I urge his confirmation to my colleagues. I very much hope, when he comes before us for a vote, we will have very strong support for his reappointment to the Federal Reserve System. We need to get these members into place at the Federal Reserve Board because there are a couple of vacancies there. One of the Board of Governors also announced his intention to retire. The President has announced his intention to nominate a couple of members. Those nominations have not yet been sent to us, thus we have not yet received them. In an effort to keep the Board of Governors of the Federal Reserve in sufficient number, I urge my colleagues to approve the Ferguson nomination when it comes before us later tonight. I yield the floor.

Mr. SARBANES

Mr. SARBANES. Mr. President, I urge Members to approve the nomination. Mr. Ferguson has been serving on the Federal Reserve Board and was nominated by President Clinton. His nomination was resubmitted by President Bush. The committee reported out overwhelmingly in favor of his nomination. I urge his approval. I yield back the remainder of my time.

Mr. SARBANES

Mr. SARBANES. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. SARBANES. Mr. President, the purpose of my amendment is to address the very serious problem of shoreline erosion and sedimentation which are adversely impacting the health of the Chesapeake Bay watershed. There are approximately 7,325 miles of tidal shoreline along the Chesapeake Bay and its tributaries. In an average year, it is estimated that 4.7 million cubic yards of shoreline material are deposited in the bay due to shoreline erosion. The results not only in serious property damage, but also contributes millions of cubic yards of sediment annually to the bay. This sediment adversely affects the bay's water quality, destroys valuable wetlands and habitat and clogs the bay's navigational channels. The Army Corps of Engineers operates thirteen reservoirs on the upper Susquehanna River and regulates the river's low and high water flows. There are also four hydroelectric projects on the lower Susquehanna. Under normal conditions, these reservoirs and dams serve as traps for the harmful sediments which flow into the River. During major storms however, they suddenly discharge tremendous amounts of built-up sediments, severely degrading the water quality of the Chesapeake Bay, destroying valuable habitat and killing fish and other living resources. Scientists estimate that Tropical Storm Agnes in 1982 ``aged'' the bay by more than a decade in a matter of days because of the slug of sediments discharged from the Susquehanna River reservoirs. There is a real danger that another major storm in the basin could scour the sediment that has been accumulating behind these dams and present a major set-back to our efforts to clean up the bay. Chesapeake 2000, the new interstate Chesapeake Bay Agreement, has identified control of sediment loads as a top priority for improving the water quality of the bay. The agreement specifically calls for load reductions fro sediment in each major tributary by 2001 and for implementing strategies that prevent the loss of the sediment retention capabilities on the lower Susquehanna River dams by 2003. Unfortunately, our understanding of the sediment processes and sources of sediments which feed the bay system is still very limited and, to date, few efforts have been undertaken to address the environmental impacts of shoreline erosion and sedimentation on the bay. In 1990, the Army Corps of Engineers completed a study on the feasibility of shoreline erosion protection measures which could protect both the land and water resources of the Chesapeake Bay from the adverse effects of continued erosion but, due to limited authorities, no Federal construction action was recommended at the time. However, the report recommended that the Corps pursue further studies including developing and refining ecosystem models to provide a better understanding of the environmental impacts of sedimentation and sediment transport mechanisms and identifying priority deposition- prevention areas which could lead to structural and non-structural environmental enhancement initiatives. On May 23, 2001, the Senate Environment and Public Works Committee, approved a resolution which I sponsored together with Senators Warner and Mikulski, directing the Secretary of the Army to review the recommendations of the Army Corps of Engineers' 1990 Chesapeake Bay Shoreline Erosion Study and other related reports and to conduct a comprehensive study of shoreline erosion and related sediment management measures which could be undertaken to protect the water and land resources of the Chesapeake Bay watershed and achieve the water quality conditions necessary to protect the bay's living resources. The resolution called for the study to be conducted in cooperation with other Federal agencies, the State of Maryland, the Commonwealth of Virginia, and the Commonwealth of Pennsylvania, their political subdivisions and the Chesapeake Bay Program. It also directed the Corps to evaluate structural and non-structural environmental enhancement opportunities and other innovative protection measures in the interest of environmental restoration, ecosystem protection, and other allied purposes for the Chesapeake Bay. The funding which my amendment would make available, would enable the Corps of Engineers to initiate this study and begin to assess alternative strategies for addressing the shoreline erosion/ sedimentation problem in the bay. As the lead Federal agency in water resource management, the Army Corps of Engineers has an important role to play in the restoration of the Chesapeake Bay. The results of this study could benefit not only the overall environmental quality of the Chesapeake Bay, but improve the Corps' dredging management program in the bay. I urge my colleagues to join me in supporting this amendment.

Mr. SARBANES. Mr. President, I ask unanimous consent to proceed as in morning business for 4 minutes.

Mr. SARBANES. Mr. President, I yield the floor, and I suggest the absence of a quorum.

Mr. SARBANES. Mr. President, I would like to clarify that it is the committee's intent that the additional $100,000 provided in the Army Corps of Engineers' operations and maintenance account for the Jennings Randolph Lake project will be used to develop access to the Big Bend Recreation area on the Maryland side of the Jennings Randolph Lake immediately downstream from the dam.

Mr. SARBANES. Mr. President, I ask unanimous consent the order for the quorum call be dispensed with.

Mr. SARBANES. I thank the chairman for these assurances. There is great demand for additional camping, fishing, and white water rafting opportunities particularly in the area just below the dam, known as Big Bend, and these funds will be very helpful in developing access to this area. great lakes drilling study

Mr. SARBANES. Mr. President, I inquire what the parliamentary situation is.

Mr. SARBANES

Mr. SARBANES. Mr. President, today Senator Mikulski, Senator Bond, and I, along with a number of our colleagues, are introducing, ``The Credit Watch Act of 2001,'' a bill that will authorize the Federal Housing Administration (FHA), to identify lenders who have excessively high early default and claim rates and consequently terminate their origination approval. This legislation is necessary to protect the FHA fund and take action against lenders who are contributing to the deterioration of our neighborhoods. A rash of FHA loan defaults have led to foreclosures and vacant properties in cities around the country. In Baltimore, the effects of high foreclosure rates are acute. In some neighborhoods, there are many vacant foreclosed homes within just a few block of each other. This can often be the beginning of a neighborhood's decline. The high volume of vacant properties creates a perception that both the property and the neighborhood are not highly valued. In turn, these neighborhoods deteriorate physically and often attract criminal activity. It's like a rotten apple in a barrel. The rundown appearance of one home spreads to the surrounding neighborhood. Stabilization and revitalization efforts are undermined by the presence of abandoned homes. The Department of Housing and Urban Development, HUD, community activists, and local law makers have come together to examine the loans being made in neighborhoods with high foreclosure rates. In Baltimore and other cities, these groups that careless lenders are offering the FHA insured loans to families who cannot afford to pay them back. This results in defaults and foreclosures. A foreclosed property can easily turn into an uninhabited home, which can either begin or continue a cycle of decline. In an effort to reduce the number of loans that end in foreclosure, the FHA developed several new oversight methods, one of which is ``Credit Watch.'' ``Credit Watch'' is an automated system that keeps track of the number of early foreclosures and claims of lenders in a particular area. This legislation authorizes the FHA to revoke the origination approval of lenders who have significantly higher rates of early defaults and claims than other lenders in the same area. The FHA is currently targeting lenders with default rates of 300 percent of the area average. Credit Watch has been an effective tool in tracking down bad lenders. Since HUD launched Credit Watch in May 1999, the Department has terminated the origination approval agreements of 77 lender branches. An additional 177 lender branches were placed on Credit Watch, warning, status. The legislation accounts for differing regional by ensuring that lenders are only compared to other making loans in the same community. It also provides a manner by which terminated lenders may appeal the decision of the FHA, if they believe that mitigating factors may justify higher default rates. When lenders make loans with no regard for the consumer or the health of the community, the FHA must be able to take action in a timely manner so that costly abuses of the FHA insurance fund can be stopped. Quick action not only protects the health of the Mutual Mortgage Insurance, MMI, fund, it protect neighborhoods from the detrimental effects of high vacancy rates and consumers from the pain of foreclosure and serious damage to their credit. Lenders that offer loans to individuals who cannot afford them should not be able to continue making those loans. It is a bad deal for taxpayers. It is a bad deal for neighborhoods. It is a bad deal for the families who take out the loan. Credit Watch is an useful and efficient way for the FHA to prevent these unfortunate foreclosures from happening. While we need to address the larger issue of predatory lending in our communities. ``Credit Watch'' is an obvious and immediate solution to one part of this problem.

Mr. SARBANES

Mr. SARBANES. Mr. President, today Senator Mikulski, Senator Bond, and I, along with a number of our colleagues, are introducing, ``The Credit Watch Act of 2001,'' a bill that will authorize the Federal Housing Administration (FHA), to identify lenders who have excessively high early default and claim rates and consequently terminate their origination approval. This legislation is necessary to protect the FHA fund and take action against lenders who are contributing to the deterioration of our neighborhoods. A rash of FHA loan defaults have led to foreclosures and vacant properties in cities around the country. In Baltimore, the effects of high foreclosure rates are acute. In some neighborhoods, there are many vacant foreclosed homes within just a few block of each other. This can often be the beginning of a neighborhood's decline. The high volume of vacant properties creates a perception that both the property and the neighborhood are not highly valued. In turn, these neighborhoods deteriorate physically and often attract criminal activity. It's like a rotten apple in a barrel. The rundown appearance of one home spreads to the surrounding neighborhood. Stabilization and revitalization efforts are undermined by the presence of abandoned homes. The Department of Housing and Urban Development, HUD, community activists, and local law makers have come together to examine the loans being made in neighborhoods with high foreclosure rates. In Baltimore and other cities, these groups that careless lenders are offering the FHA insured loans to families who cannot afford to pay them back. This results in defaults and foreclosures. A foreclosed property can easily turn into an uninhabited home, which can either begin or continue a cycle of decline. In an effort to reduce the number of loans that end in foreclosure, the FHA developed several new oversight methods, one of which is ``Credit Watch.'' ``Credit Watch'' is an automated system that keeps track of the number of early foreclosures and claims of lenders in a particular area. This legislation authorizes the FHA to revoke the origination approval of lenders who have significantly higher rates of early defaults and claims than other lenders in the same area. The FHA is currently targeting lenders with default rates of 300 percent of the area average. Credit Watch has been an effective tool in tracking down bad lenders. Since HUD launched Credit Watch in May 1999, the Department has terminated the origination approval agreements of 77 lender branches. An additional 177 lender branches were placed on Credit Watch, warning, status. The legislation accounts for differing regional by ensuring that lenders are only compared to other making loans in the same community. It also provides a manner by which terminated lenders may appeal the decision of the FHA, if they believe that mitigating factors may justify higher default rates. When lenders make loans with no regard for the consumer or the health of the community, the FHA must be able to take action in a timely manner so that costly abuses of the FHA insurance fund can be stopped. Quick action not only protects the health of the Mutual Mortgage Insurance, MMI, fund, it protect neighborhoods from the detrimental effects of high vacancy rates and consumers from the pain of foreclosure and serious damage to their credit. Lenders that offer loans to individuals who cannot afford them should not be able to continue making those loans. It is a bad deal for taxpayers. It is a bad deal for neighborhoods. It is a bad deal for the families who take out the loan. Credit Watch is an useful and efficient way for the FHA to prevent these unfortunate foreclosures from happening. While we need to address the larger issue of predatory lending in our communities. ``Credit Watch'' is an obvious and immediate solution to one part of this problem.

Mr. SARBANES

Mr. SARBANES. For nearly 40 years, researchers and scientists at SCMRE have been leaders in the field of preservation research and analysis. They have contributed greatly to the conservation efforts of museums and institutions throughout the nation and around the world by offering training programs and technical assistance. I would like to quote from an editorial that appeared on May 8 in the New York Times that captures the importance of preserving this facility: . . . [C]aring for artworks, which can often be done in museum labs, is far different from scientifically studying how to care for them. Over the years, the Materials Research Center has created an extensive store of archaeological data based on its work on collections from around the world. It makes no sense for the Smithsonian--the most remarkable accumulation of objects on earth--to close a national laboratory whose very purpose is to analyze the material basis of its collections. I thank the chairman for his time and commend him for his leadership and assistance in this matter.

Mr. SARBANES. Would the distinguished chairman yield for the purpose of a colloquy regarding language contained in the bill concerning the Smithsonian Center for Materials Research and Education.

Mr. SARBANES. Mr. Chairman, I remain deeply concerned with the Secretary of the Smithsonian's decision to close a number of the Institution's scientific and research facilities, including the Smithsonian Center for Materials Research and Education (SCMRE) located in Prince George's County, MD. It is my understanding that language contained in the bill would preclude any funds to be utilized for the purpose of closing SCMRE and the other relevant facilities without the approval by the Board of Regents of recommendations made in this regard by the Secretary's proposed Science Commission.