S. 2636, the "Foreclosure Prevention Act of 2008"

by Brad Peck

Earlier this evening Bruce Josten, Chamber Executive Vice President, Government Affairs sent a letter to the United States Senate urging them to oppose S. 2636, the "Foreclosure Prevention Act of 2008," as introduced.  From the letter:

"The Chamber opposes this bill because it improperly expands the bankruptcy code, granting new powers to bankruptcy judges to modify the terms of existing, legitimate mortgage contracts. Title IV of S. 2636 injects greater risk into the lending process; this increased risk will be evidenced in increased mortgage costs for primary residences in the form of higher interest rates, down payments, points, and fees.
...
While the Chamber opposes Title IV of this bill, the Chamber supports provisions that would stabilize and strengthen the housing market such as additional funding for credit counseling for consumers and increased flexibility to promote the use of mortgage revenue bonds. The Chamber also supports extending the net operating loss carry-back period.

While S. 2636 includes provisions that are worthy of its support, the Chamber remains concerned that expanding the bankruptcy code in an attempt to address subprime issues will only impede the progress Congress already has made in assisting troubled borrowers.
...
For these reasons, the Chamber urges you to oppose any efforts to bring S. 2636 to the Senate floor for consideration."

Read the complete letter.

Comments

[Jim]

I contacted my two Senators where one supports this bill and the version s.2136. One co-sponsors both legislative solution, removing undue protection for primary residence, the other gives the same view as the chamber.
It still is unbelievable that such claims are made. The exclusion just allowed Exploding ARMs and undue housing losses. These factors related to people having to surrender homes which usually only result in houses being bought at auction for 66% of their value because of no negotiation possible for property value and conventional loan rates with a risk premium instead of foreclosure are left out as possible redemption for bad and failing abusive loans.

[Jim]

It is disgusting that all these organizations are so afraid of eliminating a highly abused and provision that never should have been inserted into the bankruptcy laws. 1322(b)(2) has only encouraged poor lending practices and added hardship on homeowners because the conditions of the immoral and impractical loans have no consequences for the lender to be practical or honest.
Shame on your group for your crying free market but want not to be treated freely in compromise.
There is very little compromise with this blocking clause in title 11.
Remember all the farmers losing their farms when they were limited. Now you want a large amount of Americans to be regarded as market adjustments.
Be fair, be honest and stop your propagandized and fear mongering efforts to allow home owners a fair playing field.

[Taylor]

You can vote on this legislation, and have your vote sent instantly to your reps.

www.govit.com/S_2636/