Conyers Insists Meaningful Mortgage Relief Must Be Included in Financial Regulatory Reform Plan

(Washington) -- Today, House Judiciary Committee Chairman John Conyers, Jr. (D-Mich.) pledged to review the administration proposal released today to provide a new regulatory framework for the financial services industry, but insisted that mortgage relief must be a part of any legislative package.

"I am encouraged that the administration is taking steps to reform our financial marketplace," said Conyers. "What is also urgently needed is meaningful relief for families facing the prospect of foreclosure right now. Throughout the period of this economic crisis, the health of financial institutions has received top priority while distressed homeowners have been left behind.

"We need to direct our attention to those who are suffering most." In Detroit, families are losing their homes at an alarming rate - 138 foreclosures per day in Wayne County. "We can’t hope to emerge from our country’s financial crisis by ignoring the plight of homeowners. Any further efforts to address our financial services industry must include relief for homeowners facing foreclosure. We must pass the mortgage relief provisions of H.R. 1106."

Conyers introduced H.R. 1106, the Helping Families Save Their Homes Act, which would allow bankruptcy judges to work with banks to modify mortgage terms to help homeowners avoid foreclosure. Under the terms of the bill, the judge may modify the interest rate, the principal, and the term of the mortgage in order to help homeowners avoid default and continue to make payments on their mortgages. H.R. 1106 passed the House but these mortgage relief provisions were stripped from the final version of the bill.