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Protect mortgage credit -- oppose H.R. 3609

In December 2007, the House Judiciary Committee narrowly approved ABA-opposed legislation (H.R. 3609) that would allow bankruptcy judges to lower mortgage interest rates and cram down loan balances in Chapter 13 proceedings.  The approved bill covers subprime and non-traditional mortgage loans originated between Jan. 1, 2000, and the bill's enactment date, and for which claim holders have provided notice that they may foreclose.  The bill has a seven-year sunset.

Historically, bankruptcy judges have been prohibited from modifying first mortgages to increase liquidity in the mortgage markets and increase home ownership by reducing the cost of mortgage credit.  This bill undermines that public policy.

H.R. 3609 may be taken up on the Floor of the House of Representatives at any time.  It is critical that you contact your Member of Congress immediately and express your opposition to this misguided public policy that will increase mortgage costs for for future borrowers

Click here to take action now!
 
 

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