"cramming down" regulations

A Mortgage 'Tweak' We Don't Need

Excerpt:

One of the most dangerous proposals is now moving through the House of Representatives. The Emergency Home Ownership and Mortgage Equity Protection Act was voted out of the Judiciary Committee recently. It takes aim at Chapter 13 bankruptcy proceedings to make it easier for buyers to rewrite the terms of their mortgage contracts in court. It would do this by changing how a debtor's principal residence is treated in bankruptcy, allowing mortgage contracts to be modified by the courts.

In short, if this bill becomes law a mortgage would no longer be a matter between a borrower and a lender, but instead, between a borrower, a lender and a judge. Rather than interpreting private contracts, judges would suddenly be able to rewrite them.

Current bankruptcy law has existed for more than 100 years, and was designed to promote homeownership by making mortgages secure from outside meddling. Strong contracts make for a vibrant mortgage industry. Weakening mortgage contracts would endanger the future of American homeownership by making it harder for homebuyers to obtain a loan.

Comment: Bad for business, bad for prospective homeowners, bad for investors!