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Alaskan Congressman Don Young voted no today on a bill that punishes responsible Americans for the poor choices of a few.   H.R. 1106, the Helping Families Save their Homes Act contains a controversial provision which allows bankruptcy judges to “cram down” the principal of a debtor's mortgage.  This bill, which was drafted only by senior Democratic Members, will encourage debtors to file for bankruptcy, increases lender's risks, increases future mortgage costs, and makes it much more difficult for home owners that have paid their mortgage and new home buyers to purchase a home.

Earlier this week, Rep. Young introduced H.J.Res.27, the Safeguarding America’s Future Economy (SAFE) Act which creates the Joint Select Committee on Long-Term Financial Security.  This committee will be a proactive, bipartisan and bicameral committee consisting of three Members of each party, and from each Congressional body. 

“This is just the latest example of legislation that has come before this body that is impulsively reactive instead of being proactive,” said Rep. Young.  “This bill will only serve to hurt future homebuyers.  Lenders will have to absorb debts that are relieved in bankruptcy court and protect themselves against the risk of having loans crammed down.  Such increased costs will likely be passed on to the borrower.  Congress isn’t bailing Americans out of their bad credit card debt, so why should it be bailing them out of their bad mortgages?  The Majority has spent the last few months forcing taxpayers to pay for the responsibilities of others! 

“Congress needs to come together and figure out how we can avoid situations like this in the future as opposed to waiting for them to happen and then scrambling around.  That’s why I introduced the SAFE Act earlier this week.  We are in a real bind because we didn’t anticipate any of what has happened to our economy over the past year.  Now we need to let history dictate our future and learn from our mistakes.  I don’t want my grandchildren paying for our mistakes when they are adults, and I’m sure a good portion of Alaskans feel the same way.  Enough is enough.”

H.J.Res.27, The Safeguarding America’s Future Economy Act, creates the Joint Select Committee on Long-Term Financial Security. 

This committee will:

·      Be a proactive, bipartisan and bicameral committee

·      Assess big-picture risks and threats to the U.S. financial system

·      Hear testimony from economists, industry experts and policy makers of how best to maintain the solvency and stability of the U.S. financial system

·      Report their findings to Congress and making policy recommendations when applicable

·      Serve as an early warning mechanism for potential financial downturns

·      Work to ensure that a financial crisis, like the in which we are currently involved, does not happen again 

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