Jordan Stands Against "Cramdown" Bill

Congressman Jim Jordan (R-Urbana) stood on the side of the responsible homeowner in voting against H.R. 1106, the Democrats' mortgage "cram-down" legislation which would allow bankruptcy law to include home mortgages.‪

This bill gives bankruptcy courts the power to alter contracts by reducing mortgage principal and adjusting interest rates. Though intended to help American families, "cram-down" legislation rewards poor decisions made by individuals.‪‪

Lenders across America have indicated that this change in the law will force them to increase lending rates in the future. This increased cost of borrowing couldn't come at a worse time, as we are trying to restore confidence in the housing market.‪‪

Jordan stated, "It is simple economics; when there is more risk, the price goes up. If a judge is allowed to change the contract and reduce the principal of a mortgage, the risk to banks is higher and therefore, the cost to future homeowners will increase."‪

He continued, "Congress is penalizing those who do it right. The vast majority of American families are paying their mortgages. This legislation requires them to help bail out those who made poor decisions."