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| September 24, 2007 - Center for Responsible Lending |
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Center for Responsible Lending Supports Plan to Extend Bankruptcy Relief to Homeowners The Center for Responsible Lending congratulates Representative Brad Miller for proposing legislation that provides homeowners equal access to bankruptcy relief. Current bankruptcy law specifically bars homeowners from restructuring their mortgage, even when foreclosure is imminent due to abusive exploding subprime ARMs. Yet the same law allows financial relief for loans taken out on vacation homes, investment properties and boats. By addressing this gross inequity, Rep. Miller is standing up for homeowners. "Today, as foreclosures rise to epidemic levels, the entire nation is paying for abusive lending practices that have dominated the subprime market," said Eric Stein, Senior Vice President, Center for Responsible Lending. "The good news is that Congress has a simple, tax-free tool to reduce the devastation and benefit the entire economy. Rep. Miller`s proposal will help keep 600,000 families from needlessly losing their homes, and will keep wider communities from losing $72.5 billion in wealth due to the reduction in property values caused by these massive foreclosures. The biggest benefit of the law will be the establishment of standards that servicers will adopt for sustainable loan modifications, enabling families to receive voluntary modifications that will enable them to avoid even the need of entering bankruptcy." The Center for Responsible Lending looks forward to working with Mr. Miller and the Judiciary Committee to allow judges to modify abusive subprime mortgage loans and keep people in their homes. About the Center for Responsible Lending The Center for Responsible Lending is a non-profit, non-partisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation`s largest community development financial institutions. Source: Center for Responsible Lending CONTACT: Kathleen Day, +1-202-349-1871, Web site: http://responsiblelending.org/ |
| Center for Responsible Lending by Kathleen Day, Washington-DC |
