Loan Modification Program Is Failing America.
The lenders are continuing to avoid mortgage modifications thus allowing continuation of the foreclosure crisis. While the House is debating on Wall Street Reform and Consumer Protection Act of 2009, the lending group continues the old strategy of opposing a provision regarding mortgage provision that would permit bankruptcy judges to readjust the mortgage terms to help the foreclosure victims to remain in their houses. If allowed it would make a sizeable dent in solving the escalating problem.
Those opposing the measure from the lending lobby have been one of the jumbo recipients of the bailout money from the federal government. They have splurged dollars on lobbying and making generous contributions to campaigns in 2009.
An analysis was conducted by Common Cause and Public Campaign. It shows that a group of banks have opposed the provision for mortgage modification. The names include, Citigroup, Wells Fargo, Bank of America and JPMorgan Chase. According to Center for Responsive Politics this group has spent over $80 million for lobbying and over $6 million on contributions to campaigns this current year.
Bob Edgar the President of Common Cause said, “These Wall Street banks were rescued by the taxpayers after they almost collapsed under their own bad investments. They took that money and are spending millions lobbying and making campaign contributions to stop proposals that would help those same taxpayers keep their homes.”
Nick Nyhart President and CEO of Public Campaign said, “From regulatory reform to health care, campaign cash from Wall Street interests is permeating every corner of debate in Washington, D.C. Congress must create a political system that works for all of us, not just those with money to spare. It’s time to pass the Fair Elections Now Act.”
Currently the House is debating on the Wall Street Reform and Consumer Protection Act of 2009 (HR 4173). It aims at the most drastic overhauling of the financial system since New Deal. There is the possibility that the bankruptcy amendment clause being offered by the chairperson of the Judiciary Committee John Conyers Jr. (Democrat) and Rep. Zoe Lofgren (Democrat) would be taken up. The same had been attempted last March but it failed in the Senate.
Some members of the House want the Senate to again consider the proposal as most of the lenders have not been proactive in the voluntary initiatives that had been introduced in lieu of the bankruptcy clause. According to the estimate of the Treasury Department only a fifth of the qualified borrowers have been able to avail of governmental help through these voluntary measures.
Posted By George Beckus Esq
