Northmont vs. St. Ignatius
Carlisle vs. Brookville
Beavercreek vs. Carroll
Senate tentatively agrees on foreclosure bill
Brown fumes at omission of clause allowing judges to modify mortgages.
Thursday, April 03, 2008
Senate Democrats and Republicans on Wednesday, April 2, reached a tentative deal on legislation addressing the national housing crisis, but omitted a foreclosure provision U.S. Sen. Sherrod Brown, D-Ohio, said would keep thousands of families in their homes.
Brown spoke on foreclosure prevention in a conference call with Dayton Mayor Rhine McLin and Richard Nemeth, state chairman for the Northern District of the National Association of Consumer Bankruptcy Attorneys.
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"Every day the courts are open, more Dayton families are losing their homes," McLin said.
The Senate bill, aimed at boosting demand for housing and helping homeowners saddled with subprime mortgages avoid foreclosure, won tepid reviews.
The plan contains $4 billion in grants to local governments to buy and refurbish foreclosed homes, new authority for states to issue bonds to refinance subprime mortgages and a temporary $7,000 tax credit for people buying new homes or properties in foreclosure.
White House spokesman Tony Fratto said the administration likes some provisions, such as issuing mortgage bonds and modernizing the Federal Housing Administration to boost access to FHA-insured loans. The administration has "serious concerns" about other provisions such as the homebuyers' tax credit and aid to local governments to purchase foreclosed homes.
The bipartisan bill replaces a Democratic package of housing legislation that Republicans blocked in February. Missing was a provision giving federal bankruptcy judges authority to modify primary residence mortgages as they can for vacation homes.
"The bankers are very much opposed to this provision as are Republican leadership," Brown said.
The change would only apply to existing loans. Brown plans to push for the provision, expected to be offered as an amendment.
Sen. George Voinovich, R-Ohio, would oppose the provision, said his spokesman, Chris Paulitz.
"Unfortunately, this is not the right solution," Paulitz said. "It would give judges the power to do everything from forgive part of the mortgages to enforce lower rates that the companies didn't agree to."
Washington Bureau writer Jessica Wehrman
contributed to this report, which contains information from the New York Times and the Associated Press.
