Matthew Rothschild: Updated! Congress Whiffs on Housing Crisis Legislation

[marmar]

from the Progressive:



Updated! Congress Whiffs on Housing Crisis Legislation
By Matthew Rothschild, April 4, 2008

One year into the sub-prime mortgage crisis that is rocking the economy, Congress has finally bestirred itself to consider legislation to help people out.

Barney Frank, Chris Dodd, and Dick Durbin have been supplying some leadership on the issue, but the power of the financial lobbyists is so great that nothing has become law yet.

And the proposal, by Durbin, that would have helped people the most just got shot down.

That proposal, initially supported by Harry Reid, would have allowed bankruptcy judges to renegotiate the mortgages of debtors in their court.

As an indication of just how class biased the current bankruptcy law is, check this out: Judges can modify your mortgage only if you are wealthy enough to own a second home of it is an investor property. But they can’t do it for a loan on your primary residence.

Reid, with his usual spinelessness, opted to strip the bankruptcy revision from the compromise bill, so Durbin had to offer it up as an amendment, which doomed it late Thursday.

“The provision I offered was narrowly tailored and provided real help to more than half a million American homeowners facing foreclosure,” Durbin said. “Unfortunately, my amendment was strenuously opposed by the banking lobby and their powerful friends in the Bush Administration and in the Senate.”

Consumer groups were also unhappy. ......(more)

The complete piece is at: http://www.progressive.org/mag_wx040308

[depakid]

1. Reid, with his usual spinelessness, opted to strip the bankruptcy revision from the compromise bill

That just about sums up the past 6 years....

And people wonder why congress has such low approval ratings.