House Vote on Help for Homeowners Delayed

28 Feb House Vote on Help for Homeowners Delayed

Despite reports of higher-than-expected losses to Fannie Mae and Freddie Mac, and the Obama administration’s effort to stem the burgeoning foreclosure crisis, Democrats in the House could not muster the votes needed to pass a key element of those proposals.

Foreclosures also were an issue in the House, where an expected vote on a housing relief plan was delayed. Democrats were at a stalemate over a measure that would allow bankruptcy court judges to reduce the principal and interest rate on mortgages for homeowners saddled with heavy debt.

The vote was derailed after a group of moderate Democrats expressed concerns about how the bill would affect homeowners who are not facing bankruptcy but are still struggling to make their mortgage payments.

Consumer advocates and most Democrats regard the measure as crucial, claiming it’s the only way to force loan servicers to take steps to help homeowners stay in their homes. Most of the mortgage industry remains ardently opposed, and has been fighting to block the proposal.

Yep, that’s right, the same folks who brought you this crisis, and who’ve already taken billions of taxpayer money to fund their own excesses (private planes, antique rugs, retreats, parties–there are so many examples I can’t link to them all) are working hard to block the one part of the proposal that won’t cost taxpayers a dime. Color me disgusted.

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Däna (pronounced "Donna") Wilkinson, has been a bankruptcy lawyer in South Carolina for 20 years. She is certified as a bankruptcy specialist by the South Carolina Supreme Court.
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