Conyers and Eight Others Introduce Amendment to Provide Mortgage Modification Relief to Struggling Homeowners

House Judiciary Committee Chairman John Conyers, Jr. (D-MI) and his colleagues, Ms. Zoe Lofgren (D-CA) and Mr.  Jim Marshall (D-GA), released the following statements regarding their joint efforts to make modification of excessive mortgage terms part of the Financial Regulatory Reform Package.

Mr. Conyers:

"Over the past three years, millions of Americans have lost their homes through foreclosure and millions more are at risk of losing their homes. Relying solely on taxpayer-financed incentives to encourage the lending industry to voluntarily resolve our nation’s foreclosure crisis has proven to be woefully inadequate.

Thankfully there is an answer. Today, several of my colleagues and I have introduced an amendment to H.R. 4173, the "Wall Street Reform and Consumer Protection Act of 2009," that will give American families facing foreclosure a critical lifeline by which to save their homes. Our amendment – which won’t cost taxpayers a single penny – will allow a homeowner under the supervision of a bankruptcy judge to extend a mortgage’s repayment term; reduce excessive high interest rates and exorbitant hidden fees; and, under certain limited circumstances, allow the principal amount of the mortgage to be adjusted to the home’s fair market value.

Our amendment rectifies an anomaly in current law that allows virtually every other type of secured obligation to be modified, except for home mortgages. Most importantly, my amendment will help stop the endless cycle of foreclosures that lead to abandoned homes in communities across our nation and that, in turn, cause neighborhood property values and tax revenues to further decline. I am hopeful that passing this amendment will send the signal that the House feels strongly that this provision must be passed into law to help resolve the ongoing mortgage crisis."

Ms. Lofgren

"This amendment simply gives bankruptcy judges the discretion they need to protect homeowners," noted Rep. Zoe Lofgren. "It seems that the only people who have not been helped in this economic crisis are homeowners. This legislation would finally give American homeowners the same protection that large corporations enjoy."

Mr. Marshall:

"This amendment strikes an appropriate balance that is good for debtors, creditors, taxpayers, financial institutions along with all of the innocent homeowners that have been dragged into this mess. And it will not increase the future cost of home credit. It’s a rare win, win, win.

The cosponsors of the amendment include representatives, John Conyers, Michael Turner, Zoe Lofgren, Jim Marshall, Maxine Waters, Steve Cohen, Brad Miller, Bill Delahunt, and Jerrold Nadler.