“Discussion draft” of bill is up...

Ace has it here. Michelle Malkin here.

This is a “discussion draft,” i.e., not the final version. There is still plenty of opportunity for mischief. I expected the first draft to be relatively clean and without any surprises; watch out for things that get added at the last minute.

Took a quick scan through the draft’s 110 pages, and IMO it pretty much falls in line with the earlier statements.

Commenters at Ace are concerned that the combination of Section 103 (excerpted):

SEC. 103. CONSIDERATIONS.
In exercising the authorities granted in this Act, the Secretary shall take into consideration—

(1) protecting the interests of taxpayers...
(2) providing stability and preventing disruption to financial markets...
(3) the need to help families keep their homes and to stabilize communities...
... [6 other considerations omitted]...

Combined with Sections 109-110 (excerpted):

SEC. 109. FORECLOSURE MITIGATION EFFORTS.

(c) CONSENT TO REASONABLE LOAN MODIFICATION REQUESTS.

—Upon any request arising under existing investment contracts, the Secretary shall consent, where appropriate, and considering net present value to the taxpayer, to reasonable requests for loss mitigation measures, including term extensions, rate reductions, principal writedowns, increases in the proportion of loans within a trust or other structure allowed to be modified, or removal of other limitation on modifications.

...
SEC. 110. ASSISTANCE TO HOMEOWNERS.

...
(2) MODIFICATIONS.—In the case of a residential mortgage loan, modifications made under paragraph (1) may include—

(A) reduction in interest rates;
(B) reduction of loan principal; and
(C) other similar modifications.

especially the “shall consent” language in §109(C) might constitute a backdoor mandate to the Secretary to “...turn high interest mortgages into low ones, forgive portions of the PRINCIPAL not just interest, etc. for people who borrowed too much f*cking money to begin with.”^[1] I’m not enough of a lawyer to evaluate that argument, but I’ll agree that the use of “shall” instead of “may” bothers me.

Malkin sat in on the evening conference call, and has a large list of objections.  Rather than repeat it here, I’ll just link... I urge you to read the whole thing.  Here’s one reason:

Nevertheless, GOP House Minority Leader John Boehner and the House Republican leadership have thrown in the towel... Boehner called the deal a “crap sandwich,” but told House Republicans he’ll vote for it.

Paging Bill Quick!

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