When did playing by the rules become a crime?
The housing legislation that the Democrat Congress is set to consider today includes something called “cramdown” It’s a provision of the bill that gives judges the power to rewrite someone’s home mortgage when they default and file for bankruptcy, reducing the principal balance on the loan. That is, if someone takes out a $150,000 mortgage on a $200,000 home and then defaults and files for bankruptcy, the judge can lower the mortgage to match the current, sunken value of the home – say $100,000.
It’s a good deal for the borrower. But, here’s the catch: lenders will no longer want to lend money for homes because a bankruptcy judge may use this “cramdown” power to, by the stroke of a pen, reduce the amount the borrower has to repay. Lenders will have to offset the risk of a “cramdown” by raising rates and tightening lending on the more than 90% of Americans paying their mortgages on time. In other words, if you acted responsibly – saved and sacrificed to buy a home you could afford – you now are being asked to give up a chunk of those savings for someone who was not as responsible.
Once again, if you lived within your means, played by the rules, worked extra hours, your reward is another loathsome bailout strapped to your back.
Washington should be lightening the load on responsible, hardworking Americans. Instead, they keep adding to your burden.
How much more out of touch can the Nancy Pelosi Congress possibly get?