ALG Praises the Senate for "Voting to Uphold Common Sense in Mortgage Markets"

ALG
Praises the Senate for “Voting to Uphold Common
Sense in Mortgage Markets”

May 1st, 2009, Fairfax,
VA-Americans for Limited Government President Bill Wilson today strongly praised
the Senate for voting against H.R.
1106
, a bill that would have given bankruptcy judges the power to reduce
mortgage principals and rates.

In a statement, Wilson said,
“Americans for Limited Government thanks the Senate for voting against the
radical fringe of the Democrat party and for rejecting the idea of forcing those
who pay their bills to also pay for those who won’t.”

“H.R. 1106 would have forced
responsible U.S. taxpayers and homeowners to compensate delinquent borrowers and
irresponsible lenders that took out and made the bad loans in the first place,”
Wilson added.

The legislation had passed the House of
Representatives 234-191
, but failed by 15 votes in the Senate when the
Democrat Senate majority failed to kill a Republican filibuster. 
The
vote was 45-51
, and effectively kills the legislation. 

“The American people did not support
this out-and-out robbery,” he added.  “And thanks to the Senate,
who stood with their constituents, the American people have finally won a small
victory against the bailout barons.”

Wilson, in
a letter to Congress in February
, warned that the legislation would have
further weakened and distorted the housing market.

“The Senate’s constituents are the
ones who would have ultimately paid for these mortgage cram-downs,” Wilson
said.

“It would have forced banks to eat the
costs when the principal owed on the mortgage is reduced, and then the banks
facing insolvency would have had to then turn to the government for more bailout
funds,” Wilson explained.

“The taxpayers then would have wound
up paying twice: first to bail out the borrower who couldn’t afford their house,
and then the bank that was forced by government to make the bad loans in the
first place,” Wilson added.

Wilson also warned in detail that the
bankruptcy courts would have become overwhelmed, “There were about 2.3 million
foreclosures in 2008, and fortunately most of the Senate realized that 368
bankruptcy judges could not handle that sort of caseload.”

“It would have been an unmitigated
disaster,” Wilson said.

Wilson believes that most Americans do
not support President Obama’s plans for mortgages. 

“It’s very simple: the American
people do not want to reward those who made bad decisions in the first
place.  It is Barack Obama who now stands for paying off those who
took out loans they could not afford and wants to continue to force banks to
make loans that cannot be paid back,” Wilson said.

“Fortunately, Obama’s upside-down
worldview is starting to unravel,” Wilson concluded.

###

 

Americans for Limited
Government is a non- partisan, nationwide network committed to advancing free
market reforms,private property rights and core American liberties. For more
information on ALG please call us at 703-383-0880 or visit our website at
www.GetLiberty.org.