U.S. Democrats Seek Foreclosure Relief
The U.S. Senate is scheduled to vote April 1 on a Democratic foreclosure relief bill that would provide $4 billion to communities to purchase foreclosed homes, increase disclosure requirements for subprime mortgage loans, and pay for debt counselors so homeowners can negotiate with lenders.
However, Republicans are likely to oppose the bill if it includes a provision to rewrite the bankruptcy code to allow judges to cut interest rates and reduce what borrowers owe on their home loans, which they say would limit what lenders can make on loans.
Democrats say the Federal Reserve recently came to the aid of Bear Stearns, in guaranteeing questionable mortgage-backed investments among other assets, and now something should be done for homeowners.
"The federal government has provided assistance to Wall Street, now Congress must turn its attention to Main Street," insists Senate Majority Leader Harry Reid (D-Nev.).
Source: Associated Press, Andrew Taylor (04/01/08)
However, Republicans are likely to oppose the bill if it includes a provision to rewrite the bankruptcy code to allow judges to cut interest rates and reduce what borrowers owe on their home loans, which they say would limit what lenders can make on loans.
Democrats say the Federal Reserve recently came to the aid of Bear Stearns, in guaranteeing questionable mortgage-backed investments among other assets, and now something should be done for homeowners.
"The federal government has provided assistance to Wall Street, now Congress must turn its attention to Main Street," insists Senate Majority Leader Harry Reid (D-Nev.).
Source: Associated Press, Andrew Taylor (04/01/08)