Grassley Hosting Fundraiser With Mortgage Industry Lobbyists, After Opposing Cramdown

“Sen.
Grassley appears to be cashing in from the mortgage bankers for his
recent vote to prevent bankruptcy judges from renegotiating the terms
of mortgages in order to prevent foreclosures….”

In late April, the U.S. Senate rejected an amendment to the housing bill that would have allowed bankruptcy judges to provide relief for troubled homeowners by modifying mortgage payments. Among those who opposed the measure, which was known as “cramdown,” was Sen. Chuck Grassley, the ranking member of the Senate Finance Committee.

“It will cause interest rates to go up and will make it more difficult for people to get a mortgage,” the Iowa Republican said at the time.

Two months later, the people who benefited from Grassley's vote are poised to shower him with campaign donations. The senator is hosting a fundraiser on Monday evening with lobbyists and a political action committee representing, among others, key players in the mortgage and private equity industries.

The event will take place at the swank Capitol Hill restaurant, The Monocle, steps away from the U.S. Senate, and is soliciting donations of $2,500 to “host” or $1,000 for PAC or personal contributions.

“Sen. Grassley appears to be cashing in from the mortgage bankers for his recent vote to prevent bankruptcy judges from renegotiating the terms of mortgages in order to prevent foreclosures to keep people in their homes,” said David Donnelly, national campaigns director of Public Campaign Action Fund. “The lobbyists and PAC hosting this event have made it clear that they will continue to fight against the types of financial market reforms now under discussion in Washington.”

(click here to read the entire article on Huffingtonpost.com)