U.S. Chamber Comments on Administration's Housing Plan

Josten Cautions Against Extending Risky Mortgages and Cram Down Plan

WASHINGTON, D.C.— U.S. Chamber Executive Vice President Bruce Josten issued the following statement in response to President Barack Obama's Mortgage Relief Plan:

"The U.S. Chamber has strongly supported efforts, including the stimulus plan, to bring about economic recovery, job creation, and sustained long-term growth.

"The home mortgage crisis, the financial crisis, and the broader economic crisis are inextricably linked and must be addressed in a holistic way. We will be ineffective at fixing our economy if we address these crises in a piecemeal fashion."

"While the administration's plan to stabilize the housing market is laudable, serious questions remain as to whether this strategy harms our long-term economic recovery. If risky mortgages got us into this crisis, extending those risky mortgages will only postpone the pain and hamper recovery.

"Additionally, the "cram down" plan will create hundreds of separate mortgage modification policies and will extend uncertainty in the housing market, ultimately raising interest rates.

"Even though the Relief Plan has merit, it should have undergone a stress test to determine if it's ready to stabilize a major portion of our economy."

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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