Mortgage Industry Gearing Up To Fight Bankruptcy Reform
As the momentum continues in the judiciary committee to revisit legislation to allow bankruptcy judges to modify mortgages in the context of a Chapter 13 bankruptcy, the mortgage industry is writing letters to the editor of the New York Times to slow down or stop the bill.
David G. Kittle, Chairman of the Mortgage Bankers Association wrote that the modification process has helped 4.5 million homeowners! How they have helped these people stay in their homes is unknown since the experiences of the non-mortgagers are quite the opposite: that some people have been helped, but, only a fraction of those receiving foreclosure notices.
None the less, Mr. Kittle warns that allowing a bankruptcy judge to modify a home loan will increase bankruptcy filings, and be bad in the long term for the economy and the mortgage industry. Of course, what he doesn’t say is how bad not allowing such modifications is in the short term with the rising foreclosure rate and families losing their homes now.
The voluntary modification programs have helped some homeowners. Just not nearly enough. We still need someone to mediate and put some teeth into the process. Bankruptcy judges are the logical alternative.
As the momentum continues in the judiciary committee to revisit legislation to allow bankruptcy judges to modify mortgages in the context of a Chapter 13 bankruptcy, the mortgage industry is writing letters to the editor of the New York Times to slow down or stop the bill.
David G. Kittle, Chairman of the Mortgage Bankers Association wrote that the modification process has helped 4.5 million homeowners! How they have helped these people stay in their homes is unknown since the experiences of the non-mortgagers are quite the opposite: that some people have been helped, but, only a fraction of those receiving foreclosure notices.
None the less, Mr. Kittle warns that allowing a bankruptcy judge to modify a home loan will increase bankruptcy filings, and be bad in the long term for the economy and the mortgage industry. Of course, what he doesn’t say is how bad not allowing such modifications is in the short term with the rising foreclosure rate and families losing their homes now.
The voluntary modification programs have helped some homeowners. Just not nearly enough. We still need someone to mediate and put some teeth into the process. Bankruptcy judges are the logical alternative.
