ATR Blasts House “Fix” of Sub-Prime Mortgage Issue
Bankruptcy bill will make problem worse, not better
Washington, DC- Americans for Tax Reform today sent a letter to the House Judiciary Committee warning against the wrongheaded direction they are considering going in with H.R. 3609, the Emergency Home Ownership and Mortgage Equity Protection Act of 2007.
The act would empower the courts to enter into the agreement between borrower and lender, void the agreed upon terms and set whatever terms it deemed necessary. This is would have a devastating effect on the credit market and the housing industry, making the current property value crunch much worse.
“In typical Washington fashion, the solution politicians come up with would actually make a bad situation worse,” said Grover Norquist, President of Americans for Tax Reform. “It is in the best interest of both parties involved to resolve their differences in a mutually beneficial way. That can’t happen if a government agent is waiting in the wings to impose a solution should one not be agreed upon.”
“It’s understandable to want to do something when a person’s home is on the line,” Norquist continued. “But many times the best thing to government can do is nothing. Sadly, that’s not how it works in Washington. Erring on the side of caution is often times thrown overboard for simply erring. That is what the end result of H.R. 3609 would be; an error.”