Sign in or 
Share this
alternative draft letter
[Today's Date]
Dear [Representative's Name]:
I am writing to voice my opposition to the proposed legislation that would effectively result in a sweeping and carte blanc financial "bail-out" of homeowners defaulting on mortgage loans during the so-called "subprime meltdown" in the mortgage industry.
While I appreciate that the intention of such legislation is to promote and provide for affordable housing, current proposals are grossly inequitable in the manner by which they seek to address the issues. They fail to recognize that there are a great many people other than those at risk of foreclosure who have been severely impacted by what has occurred and is continuing to unfold in the real estate market. The viewpoint that the only “victims” in this crisis are those at risk of foreclosure and that their plight is largely attributable to predatory lending per se is myopic, to say the least.
Approximately 30% of the US population are not current homeowners. Their desire to live the American dream and become homeowners has been preempted by the escalating housing market of recent years as prices were driven to unsustainably high levels by the introduction of “novel” mortgage products and their euthusiastic adoption by many borrowers who used them to engage in bidding wars. It is now widely recognized that, as a result, prices are out of line with fundamental value. Many of these aspiring homeowners were faced with the choice of either buying with a “novel” and risky mortgage product or waiting for the real estate market to cool and for prices to return to levels consistent with fundamental value. Other, younger segments of the population, have been priced out as increases in their earning power lagged behind the escalation of prices.
Now, as a result of the events of the last 3-4 years, we are witnessing a correction in the housing market. This is as it should be, in order for prices to return to levels consistent with fundamental values and incomes. The affordability of housing over the long term, for all Americans, is dependant upon a correction occurring unimpeded by government intervention that favors one constituency (those at risk of foreclosure) over another (aspiring homeowners). Make no mistake about it, a sweeping “bail-out” of those currently at risk of foreclosure comes at the expense of aspiring homeowners. A “bail-out” will act as an artificial prop to current price levels as the normal mechanisms for price correction, such as negotiated short sales and foreclosures, will have been subverted. If such legislation is passed, aspiring homeowners will remain priced out of the market for many years to come and particularly so as the “novel” mortgage products that allowed those currently at risk of foreclosure to buy become increasingly unavailable.
While it is true that instances of predatory lending occurred over the last few years and efforts should be made to identify those responsible and to compensate true victims, it is unconscionable to presume that the vast majority of those currently at risk of foreclosure are “victims” of illegal practices per se. Predatory lending occurs when the lender fails to disclose the terms of the loan. There is, and has always been, a presumption of responsibility on the part of the borrower to understand the terms. The simple fact that many people may not have exercised due diligence in their responsibility to understand the terms of their mortgage simply underscores the need for better financial education, perhaps through FHA or other existing government programs.
I am appalled by the narrow and inequitable viewpoint embodied in current legislative proposals to address the issues associated with the problems in the mortgage industry. What is needed are proposals that treat all individuals equally and provide for the long-term afforability of housing for all Americans, whether currently at risk of foreclosure or not. I urge you to oppose the current proposals and to offer and support alternatives that are fair and equitable. I will be watching very closely to see how you are representing my interests in this important matter.
Sincerely,
[Your Name]
[Your Address]
Dear [Representative's Name]:
I am writing to voice my opposition to the proposed legislation that would effectively result in a sweeping and carte blanc financial "bail-out" of homeowners defaulting on mortgage loans during the so-called "subprime meltdown" in the mortgage industry.
While I appreciate that the intention of such legislation is to promote and provide for affordable housing, current proposals are grossly inequitable in the manner by which they seek to address the issues. They fail to recognize that there are a great many people other than those at risk of foreclosure who have been severely impacted by what has occurred and is continuing to unfold in the real estate market. The viewpoint that the only “victims” in this crisis are those at risk of foreclosure and that their plight is largely attributable to predatory lending per se is myopic, to say the least.
Approximately 30% of the US population are not current homeowners. Their desire to live the American dream and become homeowners has been preempted by the escalating housing market of recent years as prices were driven to unsustainably high levels by the introduction of “novel” mortgage products and their euthusiastic adoption by many borrowers who used them to engage in bidding wars. It is now widely recognized that, as a result, prices are out of line with fundamental value. Many of these aspiring homeowners were faced with the choice of either buying with a “novel” and risky mortgage product or waiting for the real estate market to cool and for prices to return to levels consistent with fundamental value. Other, younger segments of the population, have been priced out as increases in their earning power lagged behind the escalation of prices.
Now, as a result of the events of the last 3-4 years, we are witnessing a correction in the housing market. This is as it should be, in order for prices to return to levels consistent with fundamental values and incomes. The affordability of housing over the long term, for all Americans, is dependant upon a correction occurring unimpeded by government intervention that favors one constituency (those at risk of foreclosure) over another (aspiring homeowners). Make no mistake about it, a sweeping “bail-out” of those currently at risk of foreclosure comes at the expense of aspiring homeowners. A “bail-out” will act as an artificial prop to current price levels as the normal mechanisms for price correction, such as negotiated short sales and foreclosures, will have been subverted. If such legislation is passed, aspiring homeowners will remain priced out of the market for many years to come and particularly so as the “novel” mortgage products that allowed those currently at risk of foreclosure to buy become increasingly unavailable.
While it is true that instances of predatory lending occurred over the last few years and efforts should be made to identify those responsible and to compensate true victims, it is unconscionable to presume that the vast majority of those currently at risk of foreclosure are “victims” of illegal practices per se. Predatory lending occurs when the lender fails to disclose the terms of the loan. There is, and has always been, a presumption of responsibility on the part of the borrower to understand the terms. The simple fact that many people may not have exercised due diligence in their responsibility to understand the terms of their mortgage simply underscores the need for better financial education, perhaps through FHA or other existing government programs.
I am appalled by the narrow and inequitable viewpoint embodied in current legislative proposals to address the issues associated with the problems in the mortgage industry. What is needed are proposals that treat all individuals equally and provide for the long-term afforability of housing for all Americans, whether currently at risk of foreclosure or not. I urge you to oppose the current proposals and to offer and support alternatives that are fair and equitable. I will be watching very closely to see how you are representing my interests in this important matter.
Sincerely,
[Your Name]
[Your Address]
marinite |
Latest page update: made by marinite
, Apr 3 2007, 12:28 AM EDT
(about this update
About This Update
make opposition clearly stated int he first sentence as most recipients won't read past the first sentance
- marinite
3 words added 3 words deleted view changes - complete history) |
|
Keyword tags:
None
More Info: links to this page
|
There are no threads for this page.
Be the first to start a new thread.
