Status Report: Judicial Modification of Mortgages Legislation

January 27, 2009

It appears that the judicial modification of mortgages legislation (S. 61 by Durbin, HR 200 by Conyers, and HR 225 by Brad Miller) will NOT be part of the economic recovery package now under consideration in the House and Senate.

President Obama has reportedly asked Democratic leaders to exclude the mortgage legislation from the package.

However, President Obama has also reaffirmed his support for the mortgage modification legislation. The Administration is reportedly looking for a quick-moving vehicle to which to attach the legislation.

Possibilities include the 2009 omnibus appropriations bill, which congressional leaders hope to pass in the short term.

In the meantime, the House Judiciary Committee is marking up H.R. 200 at 1 p.m. today. Chairman Conyers will offer a manager’s amendment at that time. The amendment will reflect Citigroup’s January 8 decision to drop its opposition to the proposed legislation.

Some related information:

Credit Suisse released a report yesterday, “Bankruptcy Law Reform – A new tool for foreclosure avoidance.”Â Report
The Los Angeles Times editorialized yesterday in favor of judicial modification of mortgages as part of a broader approach to the foreclosure problem.

This post was excerpted from an email alert from the National Association of Consumer Advocates.