More News!

Yesterday I updated everyone on the status of Senate action on a foreclosure relief bill to be worked into some form of relief along the lines of the Frank bill from the House. Later yesterday, the Senate Banking Committee passed its version of the bill I discussed by a vote of 19-2, with all the Republican members except Bunning of Kentucky and Enzi of Wyoming voting to pass it. It will provide a large amount of foreclosure relief along the lines I discussed yesterday, and now goes to the full Senate for a vote, probably sometime in the next month or so. While the White House hasn't said what they intend to do about the Senate version, other than they don't like it, they have specifically threatened a veto of the Frank bill.

Solution for you: WRITE TO YOUR CONGRESSMAN AND SENATORS!!

More News on Mortgage Assistance

Well, three days ago I'd noted that the Senate was debating its version (similar but not exactly the same) of Barney Frank's bill that passed the House recently. Yesterday, the chairman of the Senate Banking Committee, Sen. Dodd of Connecticut, accompanied by the ranking Republican, Sen. Shelby of Alabama, announced that their bill has reached the stage of proceeding forward on a bi-partisan basis. It will allow the FHA to support up to $300 Billion in new loans to homeowners facing foreclosure who might otherwise be unable to refinance. Money for the plan would come from an affordable housing plan funded by profits of Freddie Mac and Fannie Mae. Borrowers would have to demonstrate that they could afford the new loans, and lenders would have to agree to take a cut in their planned profits as a result of the swap from existing loans to the new ones.

The Bush administration, on record with a veto threat for Rep. Frank's version, has not yet taken a position on this bill. Stay tuned.

Here's The Latest!

Well, a couple of weeks ago you may recall I mentioned that a new piece of legislation was wending its way through Congress. This was Barney Frank's bill to vastly expand the funds for foreclosure counseling, freeze high rate loans at a lower fixed rate, and reopen the bankruptcy laws for certyain specifically limited mortgage-related situations/individuals.
It has since passed the full House by a healthy margin, although not enogugh to be veto-proof. It has yet to clear the Senate, although indications are that it will do so, probablybefore the Congress recesswes for its summer vacation. Bush has loudly proclaimed he will veto it as "too unreasonable and too expensive". From this corner,it looks like exactly what the country could use in terms of relief, but to make it so someone has to convince a larger number of Congressmen/women and Senators to vote for it, enough to insure a veto-proof majority of 2/3 of each house of Congress. Let your congressional representatives and Senators know how you feel--and remind them that November is not that far off!

Here's The Latest!

Latest on the Legislative Front

Well, in past posts I've discussed laws that have either been passed or that are pending passage. Today, I'm going to update the latter. The Senate's just passed a bill that will provide $10 Billion for refis of subprime mortgages, $4 Billion for purchase of foreclosed properties and $180 Million for foreclosure counseling. No bankruptcy assistance was included. Most consumer/borrower advocates claim this is far to little in terms of helping them, but it was an 84-12 vote, so both parties agreed.
Far more borrower oriented and more helpful to them is a bill just passed out of committee by Barney Frank's Financial Serviceds committee. This would provide a great deal more assistance to homeowners trying to avoid foreclosure by handling refis and other assistance to the homwowners. The Bush White House has voiced opposition, and hinted at a veto, so whatever assistance finally gets passed will still be a way off.

The Latest & What (If Anything) It Means

Last week I had occasion to attend an annual 3-day conference on foreclosures and related items and, for the first time, found heavy emphasis on how lenders can avoid foreclosing on your home. That's right--the emphasis was heavily weighted to loss mitigation. What that purports to mean in plain English is the lenders are now starting realize that it behooves them to bend over backwards to work with their borrowers and find a way to avert foreclosure whenever it's reasonably possible. This does not mean in every case, they will agree not to foreclose. What it does mean is they have belatedly come to the conclusion that as long as things are so bleak, they would be smarter to utilize such things as forbearance or loan modification, to name a couple of methods, to try to keep the homeowner in his/her house.

Separately, you'll recall a couple of weeks ago I mentioned new action on Capitol Hill directed at legislation to ease the burder of homeowners. More plans have been offered up, but so far, nothing of substance has happened. Members of Congress favoring the lenders have gummed up the works, and those trying to help the beleaguered borrowers have been left trying to get something done against the efforts of the former. Net result--refer to the start of this post and talk to your lender.

New Relief? Maybe....

Well, it now seems that everybody is jumping on the bandwagon. Almost makes you think there is an election coming up. Oh, yeah! That's right! There is! Yesterday (4-3-08) a congressional committee announced it's working on a new plan that will include foreclosure relief in a novel form--money to help pay for more foreclosure counseling services by the lenders. Assuming the proposed bill becomes law, it would include a provision for $100 million to be used buy lenders to help initiate and/or expand counseling services to their borrower clients facing default and foreclosure. It's a long way from law and lots can change between now and whenever eventual passage and Presidential signature takes place, so don't start getting too excited just yet. But, as things develop, I'll keep you posted.