Enactment Of Foreclosure Prevention Act Doubtful
March 29, 2008
The Foreclosure Prevention Act of 2008 (S. 2636) may not be signed into law. The White House indicates it’s headed for a veto. The bill would change bankruptcy laws by giving judges the latitude to reduce interest rates and the amount that is owed on mortgages of at-risk homeowners.
"We appreciate the Senators’ efforts to try to help stabilize the mortgage market and help those who are at risk of facing foreclosure," said David Kittle, chairman-elect of the Mortgage Bankers Association. "However, by including language to reform bankruptcy and allow judges to modify mortgage contracts the bill threatens to hurt those it is designed to help. Bankruptcy reform will increase the cost of mortgage credit for all borrowers at a time when we ought to be making it easier, not harder, to get credit."
Posted in Lending, Real Estate, Things of Interest
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