May 7, 2009 – (RealEstateRama) — U.S. Senator Jim Bunning today issued the following statement opposing S. 896, the Housing Bill.
“I opposed the FHA bailout program when it was created last year because it was going to be a place for irresponsible banks to dump their worst loans and irresponsible borrowers to get a taxpayer handout.
“This bill removes critical protections to prevent borrowers who lied on their original mortgage from getting a taxpayer subsidy. This is something I fought for and got included when the program was created last year and now under this bill it would only make it easier for banks to dump their worst loans on the taxpayers.
“I certainly want to help families that are struggling through no fault of their own, but Congress should not reward people who engaged in mortgage fraud. This bill hurts responsible homeowners and rewards those who made bad decisions. The federal government should not be in the business of bailing out homeowners and banks who gambled on home prices and lost.”
