Wednesday, January 28, 2009
A bill to save homes from foreclosure by letting bankruptcy judges alter mortgage terms is moving closer to a House vote.
The House Judiciary Committee voted 21-15 to send the measure to the full House after it was amended so it would apply only to mortgages that exist before the bill becomes law. The lending industry has worked unsuccessfully to stop the bill.
Republicans opposed the bill, saying it would increase lending costs and encourage borrowers to file for bankruptcy and overwhelm the courts.
House Judiciary Committee Chairman John Conyers says the bill is one of the most tangible steps that can be taken to limit fallout from the "depression" in real estate.