Mortgage reset bill vote likely next week

Mortgage reset bill vote likely next week

WASHINGTON, Nov. 8, 2007 — The House Judiciary Committee has decided to resume consideration next week of a bill that seeks to revise sections of the U.S. Bankruptcy Code and give judges power to modify certain terms in existing mortgages.

After working on the bill for much of the day, the committee decided Wednesday night to table discussion and move on to other pending matters on its agenda.

The committee postponed a vote on the bill last month amid criticism by some in the financial services industry who opposed the idea of being forced by the courts to change loan terms.

The bill, entitled the Emergency Home Ownership and Mortgage Equity Protection Act (H.R. 3609), was introduced by Rep. Brad Miller (D-N.C.) and carries 37 additional co-sponsors.

It would require notification of fees in a timely manner and would not allow U.S. trustees to investigate claims unless requested by the debtor. Also, the bill would allow debtors to forego counseling.

The measure is expected to be taken up again next week.

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