July 29, 2009
A senior House Democrat is threatening banks that if they don't volunteer to save more homeowners from foreclosure, Congress will make them.
Rep. Barney Frank, chairman of the House Financial Services Committee, said that rising foreclosure rates will increase Congress' appetite for legislation that would let bankruptcy judges write down a person's monthly mortgage payment. The financial industry has fought bitterly against the bill and, so far, kept it from passing the Senate.
Frank said that besides reviving the bankruptcy bill, his committee won't consider legislation to help banks lend until there is a "significant increase" in loan modifications.