shaping the new financial architecture…


Posted in progress by Kitty on December 7, 2009

House Democrats eye ‘cramdown’ measure for regulatory reform bill

The By Silla Brush – 12/07/09 04:58 PM ET

House Democrats this week are expected to add to wide-ranging financial overhaul legislation a controversial amendment allowing bankruptcy judges to alter home mortgages.

The House already passed a bankruptcy measure this year, but the effort died in the Senate, with backers falling 15 votes shy. Senate Majority Whip Dick Durbin (D-Ill.) was unable to round up enough Democrat votes behind the effort.

Chair Frank more mods or bankruptcy provision

Source: Frank Statement on the Progress of Reducing Foreclosures July 29, 2009

“Financial Services Committee Chairman Barney Frank (D-MA) today welcomed the announcement by Secretaries Geithner and Donovan that the meeting held by their top assistants with representatives of the mortgage servicing industry on July 28th was productive, and that they expect there to be a significant increase in the number of mortgage modifications. But Frank noted that there is great disappointment in both Congress in particular and the country as a whole in the failure of these institutions to do a much better job at modification so far, and he cautioned that if the progress the administration foresees is not soon evident, more drastic legislative measures will be back on the agenda.

“Congress has provided every legislative tool recommended by people in the mortgage industry, and in the administration, that we were told would be helpful in facilitating the modifications we need to diminish the flood of foreclosures which has been so much a part of our national economic problem.

See more at Riski… mortgage mods

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  1. catelong said, on December 8, 2009 at 1:22 am

    Frank proposes to use TARP funds to help home owners
    By Silla Brush – 12/07/09 06:59 PM ET
    Rep. Barney Frank (D-Mass.) has unveiled legislation that would shift $3 billion of the $700 billion financial bailout in favor of emergency mortgage aid.

    In an amendment to wide-ranging financial overhaul legislation that the House is expected to vote on by Friday, Frank wants to direct the $3 billion away from the Treasury Department to the Housing and Urban Development agency.

    Frank has been pushing the federal government to take stronger action to help the housing market as it continues to suffer in the weak economy. Earlier this year he said money from the bailout, known officially as the Troubled Asset Relief Program (TARP), should help the housing market.

    Frank’s amendment comes as President Barack Obama and members of Congress look at new ways to stimulate the economy. The unemployment rate, although it fell modestly last month, rests at 10 percent.

    Obama will speak at the Brookings Institution Tuesday and may outline additional economic measures. Congressional lawmakers are discussing a range of options, including an extension of unemployment benefits, aid to extend credit to small businesses, a work-share labor incentive program and possibly additional aid to states and cities.

    Republicans have been adamantly opposed to redirecting bailout money to efforts to bolster the economy. They want the money to go toward paying down the national deficit.

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