Mortgage Company Blames BAPCPA for Increased Foreclosures

22 Mar Mortgage Company Blames BAPCPA for Increased Foreclosures

Mortgage giant Credit Suisse has looked at the ever-increasing number of foreclosures and determined that what’s causing the problem is…

No, not the poor subprime loans it made.
No, not improper underwriting, oversight or supervision.
No, not economic issues.

Rather, the problem is BAPCPA–the changes to the Bankruptcy Code adopted in 2005 at the urging (and millions of dollars in campaign contributions) of the credit card and lending industry.

Credit Suisse’s article argues that because the Means Test and other BAPCPA changes push more people into five-year Chapter 13 repayment plans (which let them save their homes from foreclosure), they don’t get their money fast enough. As John Lackow notes in his TPM Cafe blog, “it’s hardly what those lenders expected they were getting from the ’05 law.”

Looks as if the doctrine of unintended consequences of this massively flawed law is starting to rear its ugly head yet again.

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Brett Weiss, a senior partner at The Weiss Law Group, LLC, represents people and businesses in all phases of bankruptcy. He has experience in complex individual Chapter 7, Chapter 11, and Chapter 13 bankruptcy cases, and in Chapter 11 small business restructuring and reorganization. Mr. Weiss lectures nationally on bankruptcy issues. He has testified before the Federal Bankruptcy Rules Committee, the Consumer Financial Protection Bureau, and has twice testified before Congress on bankruptcy and credit issues. Brett Weiss is the co-author of Chapter 11 for Individual Debtors, and has written Not Dead Yet: Bankruptcy After BAPCPA, for the Maryland Bar Journal, as well as hundreds of blogs for the Bankruptcy Law Network. With his colleague, Daniel Press, he recorded a 13-hour basic bankruptcy training series, and leads intensive three-day Chapter 11 training boot camps. Mr. Weiss has received international media attention in connection with his work. He was interviewed by Barbara Walters on The View, has appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, National Public Radio, AARP-TV, the BBC World Service, German state television, and numerous local radio and television programs, and been quoted in Money magazine, The Washington Post and The Baltimore Sun, among others. Brett Weiss is the previous Maryland State Chair for the National Association of Consumer Bankruptcy Attorneys, a founding member of the Bankruptcy Law Network, on the board of the Maryland State Bar Consumer Bankruptcy Council, and a member of the American Bankruptcy Institute and the Bankruptcy Bar Association of Maryland. He has received the Distinguished Service Award from the National Association of Consumer Bankruptcy Attorneys for his work on behalf of consumers across the country. Mr. Weiss is admitted to practice before Maryland and District of Columbia federal and state courts, the United States Courts of Appeals for the DC, Fourth and Eighth Circuits, the United States Tax Court, and the Supreme Court of the United States, and has been practicing law since 1983.

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