Stop Meddling In The Mortgage Industry

Floor Speech

STOP MEDDLING IN THE MORTGAGE INDUSTRY -- (House of Representatives - February 26, 2009)

(Mr. FLEMING asked and was given permission to address the House for 1 minute and to revise and extend his remarks.)

Mr. FLEMING. Mr. Speaker, I rise to speak also about H.R. 1106, the so-called mortgage cram-down bill which, I am afraid, is being crammed down the throats of the American citizens.

There are families in this country seriously hurting in these tough economic times. They're looking for ways to keep their homes from going into foreclosure.

I would support a targeted measure to help those who didn't overreach when they purchased a home, but this broad stroke cram-down bill we have been given allows the court system to modify home mortgages, including reducing the loan principal. This would leave responsible homeowners to pick up the tab for the mistakes of others. Also, it would further encourage folks to file bankruptcy, rather than working out their financial problems. Giving the judges the power to arbitrarily change the terms of a mortgage is not the direction we need to go in this country. Home buyers will be forced to pay higher interest rates and downpayments if lenders face the risk that a judge could change mortgage terms in the future.

It was the meddling in the mortgage industry by Congress that helped start this economic mess in the first place. Why should we continue meddling?

Continued efforts by Congress to reward unwise financial decisions will keep the dream of affordable home ownership unattainable for many responsible citizens for years to come.

Source