Lenders Fighting Mortgage Rewrite

[flashl]

Measure Targets Bankrupt Homeowners

The nation's largest lending institutions are lobbying hard to block a proposal in Congress that would give bankruptcy judges greater latitude to rewrite mortgages held by financially strapped homeowners.

The proposal, which could come to a vote in the Senate as early as next week, is being pushed by Democratic congressional leaders and a large coalition of groups that includes labor unions, consumer advocates, civil rights organizations and AARP, the powerful senior citizens' lobby.

The legislation would allow bankruptcy judges for the first time to alter the terms of mortgages for primary residences. Under the proposal, borrowers could declare bankruptcy, and a judge would be able to reduce the amount they owe as part of resolving their debts.

Currently, bankruptcy judges cannot rewrite first mortgages for primary homes. This restriction was adopted in the 1970s to encourage banks to provide mortgages to new home buyers.

Washington Post

[Yael]

1. If the banks stand up and OFFER to rewrite the mortgages within underwriting

guidelines BEFORE these loans go to the judge then they wouldn't have anything to bitch about.

Thats what sucks about being a predator. You pick the bones of one too many carcases and the government will step in.

They brought it all on themselves.

[PassingFair]

2. What is REALLY weird...

is the thought of the AARP fighting the Banking Lobbyists.

:crazy: