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Congress' proposal on this, it would allow or authorize courts to decide interest rates. That is what happened in Germany in the 1920s when Germany suffered from massive inflation. German Codes include a provision (which is also in our Commercial Code thanks to Llewelyn who helped draft the original Commercial Code) regarding good faith. Based on that provision, the German courts simply rewrote contracts, especially longterm agreements, to adjust for inflation. Specifically, landlords who had entered into longterm leases were being ruined because the agreed upon rents had decreased in value to the point that the landlords could not maintain or heat their buildings. The interference by the courts (a truly despicable example of judicial activism) just caused the inflationary spiral to get worse and worse.
Congress should go back to the drawing board and figure out some other way to help homeowners. Except in rare cases, courts have no business rewriting the terms of private contracts. Courts interpret contracts and it sometimes seems as though they are rewriting the contracts, but that courts should not rewrite contracts. At least in California, a court can declare that a contract or a provision in a contract is unconscionable or illegal and therefore unenforceable. Courts can also decide that a party's agreement to a contract was induced by fraud and then apply a different remedy, but courts should not be trying to rewrite contracts.
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