Housing Bill Rewards Bad Behavior at Taxpayer Expense

FOR IMMEDIATE RELEASE
March 5, 2009

Congressman Joe Wilson (SC-02) issued the following statement after the House of Representatives passed a housing bill that will bailout irresponsible behavior at the expense of taxpayers and those who played by the rules.

Wilson supported an amendment to the legislation that would have expressly prohibited anyone from receiving taxpayer dollars or protection under this bill if they misrepresented or lied about their income when applying for a mortgage. This is similar to an amendment Congressman Wilson introduced during earlier consideration of the housing bill but which the majority chose to not allow for debate.

“All of us here are committed to helping American families stay in their homes. As a former real estate attorney for 25 years, I know firsthand the benefits of homeownership and the tragedy of foreclosure. But good intentions are not a substitute for good solutions.

“House Republicans offered a commonsense amendment to this bill that would have kept judges from forcing banks to renegotiate mortgages for individuals who intentionally misled their lender. Unfortunately, the majority voted against this protection for the American taxpayers while endorsing a plan that will likely lead to higher interest rates for homeowners and greater uncertainty in our markets. Republicans believe we should stop rewarding bad behavior and start protecting American taxpayers.”

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