Republican rep voted against U.S. House bill to slow housing crisis

As the U.S. House was voting to ease the housing market crisis on Wednesday, Republican Rep. Tim Walberg was on the floor casting a dissenting vote.

Walberg claimed he voted against the bill because it rewarded risky investments. But there could be another reason. Public records show Walberg’s campaign has benefited from money donated by Michigan-based Trott and Trott law firm, which profits from the handling of mortgage foreclosures. 

Walberg had his public reasons for voting no on the measure, which authorizes a bailout for mortgage lending giants Freddie Mac and Fannie Mae as well as providing immediate relief for homeowners facing foreclosure:

Rather than allow the government to reward risky investments, Congress should work on policies that promote home ownership and keep alive the dream of owning a home for all Americans. Michigan taxpayers cannot afford to pay for the irresponsibility and blatant recklessness of mortgage servicers and speculators, and this legislation forces hard working families to backup $300 billion in risky mortgage securities and adds a new tax on mortgages, which will only slow any economic recovery and job growth.

But the vote likely was pudding for the folks at Trott and Trott, the nation’s largest foreclosure legal firm, which is based in Farmington Hills. Money from Trott and Trott may have indirectly gone to Walberg.

Continued –  Trott and Trott held a swanky fund-raiser for Walberg’s Republican neighbor Mike Rogers’ Political Action Committee, Majority Initiative Keep Electing Republicans on Dec. 10, 2007.

How much money Rogers’ PAC took from the Trott and Trott event is unknown, but what is known is that three months later, the PAC gave Walberg $5,000 on March 26, 2008, having earlier donated a total of $4,500 in 2007.

Walberg’s no vote was certainly also a delightful sound to his top donor Club for Growth, which has given Walberg $27,200 so far this election cycle. Club for Growth endorses Republican candidates who support limited government and free-market responses to economic issues in America. The group stood opposed to the housing bill because it provided government money to businesses to get out of the housing crisis.

Walberg has publicly supported free market solutions to the housing crisis, which was caused by the rolling back of government regulation. Talking to the Tecumseh Herald, Walberg said:

As I told people at the foreclosure seminars, the best thing that the government can do is step out of the way and give the free market the opportunity to work, with supply and demand, and give business leaders and entrepreneurs the opportunity to take risks and be successful and to produce jobs.

John McCain’s campaign has recently come under fire for leasing space from Trott and Trott and its lead partner, David Trott’s Farmington Hills office building.

While no one at Trott and Trott or Walberg’s office returned phone calls seeking comment, the campaign of Walberg’s Democratic challenger Mark Schauer issued the following statement about the financial links:

“Unfortunately, I can’t say it’s a surprise that the same man who said he was ‘bought and paid for’ by the extreme Club for Growth would be linked to a firm that has actively profited from our state’s housing crisis. I am committed to fighting for policies that will help people avoid foreclosure and stay in their homes, and I think south central Michigan is ready for a Congressman who will put the needs of homeowners ahead of his own political career.”

The Detroit Free Press reports that Joe Knollenberg was the only Michigan Republican to vote in favor of the bill.