HR 3609 - 5 Things You Need To Know About The Senate's mortgage Fix
1) Proposes a revision to the U.S. Bankruptcy Code that would allow judges to lower interest rates and reduce the balance on troubled borrower's mortgages.
2) Mandates $200 million towards foreclosure-prevention counseling (Doubling current funding).
3) Allows states to issue more tax-exempt bonds so housing agencies can help homeowners refinance.
4) Supporters, including the bills author Sen. Richard J. Durbin (Ill.), feel this could prevent as many as 600,000 homeowners from losing their homes. Supporters include most Democrats, labor unions, consumer advocates, and civil rights organizations such as: AARP, The Center for Responsible Lending, The Consumer Federation of America, The AFL-CIO, The National Council of La Raza, etc.
Supporters signed joint letter from Senate Majority Leader Harry M. Reid of Nevada stating: "The court-supervised modification provisions is a commonsense solution that will help families save their homes without any cost to the U.S. Treasury, while ensuring that lenders recover at least what they would in foreclosure."
To offer your support visit: http://ga3.org/campaign/SupportHR3609
5) The Opposition claims HR 3609 is a short term solution, and in the long run will be offset by higher costs to future borrowers. They refer to this bill as "The Cram Down" which is an industry term for forced easing of mortgage terms. Banks say they would have to pass along the added risk to borrowers in the form of higher intrest rates, larger down payment requirements, and increased closing costs. Those who oppose HR 3609 include most Republicans and industry associations such as The American Bankers Association, The Financial Services Round Table, Consumer Bankers Association
To quote the American Bankers Association; "this bill throws into question the value of the collateral that backs every mortgage made in this country -- the home. Even a change Congress says will be temporary will be interpreted by the market as an additional risk, which lenders' prices must reflect".
To express your disapproval visit http://www.mortgagebankers.org/StopTheCramDown
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