Dreier Supports Fairness for Taxpayers, Opposes Irresponsible “Cram Down” Bill

March 5, 2009

WASHINGTON, DC – Congressman Dreier (R-San Dimas, CA), Rules Committee Ranking Republican, today supported a measure that would provide fairness for taxpayers while working to solve the housing crisis, over a bill that would reward irresponsible borrowers and punish hard-working Americans who are paying their mortgages and other financial obligations on time. Dreier opposed H.R. 1106, the Helping Families Save Their Homes Act of 2009, which passed the House, 234 to 191.

“There is broad agreement that we need to do everything possible to solve the housing crisis and get our economy back on track,” Dreier said. “However, it is simply wrong to reward irresponsible behavior and punish those who are playing by the rules and living within their means. Let’s remember that ninety percent of homeowners pay their mortgage and other bills on time. Instead of providing real solutions to help Americans stay in their homes and revive the housing market, the bill approved today will do nothing to bolster the housing market and at the same time, provide an incentive for reckless borrowers to abuse the bankruptcy system. That’s not going to help our economy begin its recovery.”

H.R. 1106 would allow bankruptcy courts to adjust the terms of primary resident mortgage loans. This would encourage a significant increase in bankruptcy filings and raise the cost and diminish the availability of credit for new home buyers and those that want to refinance their mortgages.

Dreier pointed out that Republicans are offering concrete plans to help American homeowners. Today he supported a measure that would provide fairness to taxpayers by barring both those who cheated on their mortgage applications and lenders who failed to follow proper underwriting standards from participating in any program funded by H.R. 1106 or TARP.

Congressman Dreier has also authored the Economic Recovery Through Responsible Homeownership Act, H.R. 101, which would provide a temporary tax credit to buyers who make a down payment of at least five percent for the purchase of a home. “One solution to help the housing market recover is a temporary incentive for responsible home purchases with a significant down payment. My plan lays the foundation for economic recovery by providing a tax credit for responsible home buyers who put at least 5 percent down for the purchase of a home in 2009 and 2010. This will achieve two things. First, it will help families who want to make a purchase and second, it will help get the real estate market moving again.”