The much anticipated legislation allowing bankruptcy judges to modify mortgages looks like it is fated not to pass the Senate. Riverside County bankruptcy attorneys and San Bernardino bankruptcy attorneys, along with many Inland Empire residents facing foreclosure, were hoping for some relief from Congress. A different consumer-related bill, relating to credit card regulation, looks like it will pass, however.
From Yahoo news:
“Two consumer-oriented pieces of legislation opposed by the financial services industry appear to be headed for radically different fates in Congress.
A credit card reform bill with enhanced consumer protections is progressing fairly smoothly, while a so-called cramdown bill-which would let homeowners use bankruptcy court as a an alternative to the foreclosure process-appears unlikely to become law, according to business and Congressional sources.
The difference may be as simple as the level of pubic support from the White House at a time when relations between the administration and the financial services industry are deteriorating amid tension over TARP money, bank stress tests and executive pay.
‘There will be a credit card bill,’ predicts one well-placed industry source. ‘It makes sense. Everybody in America understands the issue. If you had to pick a legislative fight, with this you win.’
‘The cramdown is a much tougher one to do, which is part of what is going into the thinking,” says veteran banking analyst Bert Ely of Ely & Co. “There’s a lot of people who don’t have a mortgage. Credit cards are more of a populist issue.’”
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