Opposition to the “Helping Families Save Their Homes in Bankruptcy act of 2009” is coming from the banking and lending industry. They are literally pouring millions of dollars into lobbying against this legislation, as reported by KUTV, news 2.
They argue that allowing judges to reduce mortgage payments will end up costing home owners more in the long run, because mortgage lenders will have to charge higher interest rates and require more of a down payment to offset the risk that the loan amount could be reduced by a bankruptcy judge.
This industry has spent millions on lobbying efforts in the past year. The U.S. Chamber of Commerce, alone, spent $57.9 million on lobbying in 2008, and is one of the ten organizations that is actively opposing this legislation in Congress.
It’s time to get this bill passed. It is the one thing that could save your home. Write, fax or e-mail your Congressperson.