Mortgage lenders are fighting lawmakers’ efforts to enable bankrupt borrowers to reduce the size of their home loans, arguing this change would magnify the housing crisis by driving up interest rates.
The House Judiciary Committee put off a vote Wednesday evening on a bill by Rep. Brad Miller, D-N.C., and Rep. Linda Sanchez, D-Calif., that would allow home mortgages on primary residences to be modified in bankruptcy court. Doing so, advocates say, could help as many as 600,000 homeowners avoid foreclosure.
Read the Business Week Article here.
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