The Mortgage Rescue Bill... with a Trial Lawyer Earmark Thrown in

by Bryan Quigley

Pop quiz question:  Who are the victims of the recent housing crisis?

A. Borrowers who signed mortgages they couldn't afford

B. Owners who have seen the values of their homes plummet

C. Local governments who are dealing with neighborhoods of vacant, foreclosed housing and a shrinking tax base

If you chose any of the above, you are wrong. According to the latest legislation getting ready to pass the House, the answer is: D. Plaintiffs' trial lawyers.

As reported in The Hill and Washington Times, slipped into the emergency housing legislation expected to pass the House this week is a $35 million payout to the plaintiffs' trial bar.

So, Ms./Mr. Congressperson, you want vote for the housing bill? First, pay tribute to the trial lawyers.

Vote for the bill and help fund the plaintiffs' bar's effort to bring more lawsuits. Vote against the bill and not only might you have to answer to angry voters, but the trial bar will spend lots of money to defeat you in November.

Unfortunately the housing bill is only the latest example of the plaintiffs' trial lawyers' lobbying efforts. They’ve been working hard with their allies in Congress to get lawsuit-expanding language into everything from Homeland security bills, to farm bills, to FDA reauthorization bills, to reforming the Consumer Product Safety Commission.

So this week we'll be able to add another group of victims in the housing crisis: U.S. taxpayers who will be funding kickbacks to enable plaintiffs' trial lawyers to bring more lawsuits.

//Link updated: 1:53pm

Comments

[ChamberPost]

From The Hill:

http://thehill.com/leading-the-news/frank-gets-bernanke-boost-ahead-of-vote-on-housing-bill-2008-05-06.html

"Republicans on Monday also raised objections to language added in committee to earmark $35 million for legal counseling, which they called a slush fund for trial lawyers to sue lenders."

The second page of the Washington Times article is, for some reason, only available in the printer version, found here:

http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20080507/NATION/458519991/1002&template=printart

[James F. Schoener]

I read the Washington Times story - it DID NOT make reference to a $35M. inserted to the bailout bill. Please send me the information.