Maxine Waters

Ms. WATERS

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, this is a very important measure that will increase corporate accountability and help those companies committed to ferreting out wrongdoing to take action without government involvement and protects those workers who help them to do so. I commend the gentleman from Texas and the gentleman from Michigan for working in a bipartisan manner to bring this bill before the House. Mr. Speaker, I urge my colleagues to join me in supporting this important piece of legislation, and I yield back the balance of my time.

Ms. WATERS. Mr. Speaker, on that I demand the yeas and nays.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2162) to require the Secretary of Housing and Urban Development to discount FHA single-family mortgage insurance premium payments for first-time homebuyers who complete a financial literacy housing counseling program, as amended.

Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise to support H.R. 2162, the Housing Financial Literacy Act, a bipartisan bill authored by Representative Beatty, the chairwoman of the Subcommittee on Diversity and Inclusion, and cosponsored by Representative Stivers. This bill will make homeownership more affordable for FHA borrowers who complete a housing counseling program from a HUD-approved housing counseling agency. While HUD currently has the authority to provide premium discounts to incentivize housing counseling, HUD is not taking advantage of this opportunity to help borrowers and strengthen the FHA. Research has consistently demonstrated that loans made to borrowers who have received prepurchase counseling perform better than loans made to comparable borrowers who did not receive prepurchase counseling. And when borrowers avoid delinquencies, lenders save money, too. A 2013 study by Freddie Mac found that, when 90-day delinquencies were lowered by 29 percent, lenders saved an average of $1,000 per loan. So this bill would not only benefit consumers; it would also help increase the financial health of FHA. Mr. Speaker, I thank Representative Beatty and Representative Stivers for their work on this commonsense, data-driven bill, and I urge my colleagues to vote ``yes'' on H.R. 2162. Mr. Speaker, I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield as much time as she may consume to the gentlewoman from Ohio (Mrs. Beatty), the chair of the Subcommittee on Diversity and Inclusion and the sponsor of H.R. 2162.

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, I thank the gentlewoman and gentleman from Ohio for pushing this bill forward. This bill incentivizes financial literacy that will help avoid delinquencies and may have an impact well beyond the housing area. Mr. Speaker, I urge all of my colleagues to join me in supporting this important piece of legislation, and I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I move to suspend the rules and agree to the resolution (H. Res. 456) emphasizing the importance of grassroots investor protection and the investor education missions of State and Federal securities regulators, calling on the Securities and Exchange Commission to collaborate with State securities regulators in the protection of investors, and for other purposes.

Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I want to thank Representative Pressley and Representative Huizenga for bringing H. Res. 456 to the floor, a bipartisan resolution that highlights the importance of our State securities regulators to protecting investors. This year commemorates the 100th anniversary of the North American Securities Administrators Association, the oldest international investor protection organization with a membership consisting of 67 State, provincial, and territorial securities regulators in the 50 States, the District of Columbia, the U.S. Virgin Islands, Puerto Rico, Canada, and Mexico. The primary mission of both State securities regulators and NASAA is to protect and advocate for the protection of investors, especially the most vulnerable investors, like our Nation's seniors, who may lack the expertise, experience, and resources to protect their own interests. These grassroots regulators are often the first line of defense against investment fraud and often respond to emerging frauds and investment scams before they are detected at the Federal level. In 2017 alone, State securities regulators conducted nearly 4,790 investigations, leading to more than 2,100 enforcement actions, including 255 criminal prosecutions. These actions have resulted in approximately $486 million in restitution for harmed investors, nearly $79 million in fines and/or penalties, and 1,985 years in incarceration or probation being ordered. In addition, in 2017, NASAA's U.S. member jurisdictions reported bringing formal enforcement actions involving more than 1,100 senior victims, illustrating their unwavering commitment to protecting senior investors. NASAA also engages and collaborates with Congress to promote Federal laws to improve protections for senior investors. For example, in 2018, we worked with NASAA to pass the Senior Safe Act, which was inspired by a training program developed by NASAA in partnership with the Maine Council for Elder Abuse Prevention. The Senior Safe Act addresses barriers that financial professionals face in reporting suspected senior financial exploitation or abuse to authorities. NASAA also collaborated with us on the Senior Security Act, which passed the House with broad, bipartisan support in April. That bill would, among other things, require the SEC to work across divisions and with the State securities regulators to ensure that seniors are not subject to financial exploitation. I strongly support our State securities regulators, and I urge my colleagues to join me in supporting this resolution. Mr. Speaker, I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield as much time as she may consume to the gentlewoman from Massachusetts (Ms. Pressley), the sponsor of H. Res. 456.

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, this important resolution demonstrates that our Federal form of government serves us well. Both Federal and State authorities have important roles to play, and this is certainly true in the securities arena. I congratulate my colleagues from Massachusetts and Michigan for bringing this bipartisan bill before the House. Mr. Speaker, I urge my colleagues to join me in supporting this important piece of legislation, and I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2919) to require the Securities and Exchange Commission to carry out a study to evaluate the issues affecting the provision of and reliance upon investment research into small issuers.

Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I thank the ranking member of our Investor Protection, Entrepreneurship, and Capital Markets Subcommittee, Representative Huizenga, and Representative McAdams, for working across the aisle on this bipartisan bill to improve investment research coverage for small issuers. Investment research helps to raise investor awareness, understanding, and interest about a company, which in turn can promote informed investment and overall trading in a company's securities. However, reports indicate significant declines in analyst research on small public companies. In fact, it appears that most exchange-listed companies with less than $100 million in market capitalization have no research coverage at all. To address this concerning trend, H.R. 2919 would direct the SEC to conduct a study on the issues that are affecting the availability of research coverage for small issuers, including emerging growth companies, companies considering an initial public offering, and minority-, women-, and veteran-owned businesses. It also directs the SEC to report back recommendations to improve the quality and availability of investment research for small issuers. I urge my colleagues to support this bipartisan bill to enable us to identify some of the barriers small businesses face when attempting to get their story out to investors in our public capital markets. Mr. Speaker, I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, I am pleased that Mr. Huizenga and Mr. McAdams worked in a bipartisan manner to bring forth H.R. 2919. Markets work best when there is adequate public information, and the study on additional research provided for in this bill will help ensure that this is the case. I urge my colleagues to join me in supporting this important legislation, and I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3050) to require the Securities and Exchange Commission to carry out a study of the 10 per centum threshold limitation applicable to the definition of a diversified company under the Investment Company Act of 1940, and for other purposes, as amended.

Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Our capital markets are the envy of the world. This is due, in part, to the fact that once a company goes public, it can efficiently raise money for mom-and-pop investors who, in turn, can easily buy and sell shares. However, there is some evidence that initial public offerings, or IPOs, of smaller companies, known as microcap companies, have declined since the dot-com bubble in 2001. This decline accounts for the main reason that the total number of stocks has declined. I think it is important that we look into why this is the case and find out what policies we should be working on in Congress to ensure that our Nation's small businesses are able to access the public markets. I support the gentleman from Wisconsin's bill, the Expanding Investment in Small Business Act of 2019, for doing just that. This bill would require the Securities and Exchange Commission to study and solicit public comment on the existing rules restricting a diversified mutual fund's exposure to a single company. It would also require the SEC to determine whether that requirement limits capital formation considering current investing trends and other factors the SEC determines are necessary and appropriate to protect investors. The SEC would have to issue a report to Congress with its findings and determinations made in carrying out the study and any legislative recommendations, including any recommendation to update the current thresholds. This bill helps ensure that we have the facts and data necessary to make an informed decision on whether we should change the current diversification limits for mutual funds and whether doing so will provide additional investment in small company IPOs. I thank Representative Steil for working with me this Congress to ensure that the revised text of the bill also seeks to promote competition in our capital markets, and Mr. Gonzalez for cosponsoring this bill. I urge all Members to vote ``yes,'' and I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I have no further speakers, and I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. I want to, again, thank the sponsors of H.R. 3050 and the gentleman from Wisconsin for working with my side on the text of this legislation. I think it is a good bill and will, along with other measures that we are considering today, improve the access of small businesses to U.S. capital markets. Mr. Speaker, I urge my colleagues to join me in supporting this important piece of legislation, and I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2409) to amend the Securities Exchange Act of 1934 to expand access to capital for rural-area small businesses, and for other purposes.

Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I would like to thank Representatives Axne and Mooney for working together to put forth this bipartisan piece of legislation to require the Advocate for Small Business Capital Formation at the Securities and Exchange Commission to pay particular attention to the unique challenges rural-area small businesses face in accessing the funds they need to grow and thrive. This important bill has gained broad bipartisan support because it is aimed at understanding and addressing real problems faced by Americans all across our country: the capital needs of rural startups and entrepreneurs. When we created the Advocate for Small Business Capital Formation we recognized that our Nation's small businesses are proven job creators which require special attention from the SEC. However, it is also important for the advocate to recognize that different types of small businesses face unique challenges. For example, as a result of my amendment to the legislation creating the position, the advocate is required to specifically consider the challenges facing minority-owned and women-owned small businesses. H.R. 2409 would recognize another important category: small businesses in rural areas and require the advocate to pay special attention to and report to Congress on the unique challenges and issues they face. According to a recent survey by the Small Business Majority, roughly one in five rural small businesses rated access to capital as one of the top three challenges to maintaining or growing their business in their community. What is more, these businesses largely get their funds from personal savings, and only 13 percent said that they received investments or gifts from friends or family. So I think it is time for the SEC to look into why that is and see what, if anything, we can be doing to encourage capital formation for our Nation's rural small businesses. Mr. Speaker, I urge all of my colleagues to support this important bill, and I reserve the balance of my time.