Banks Continue To Oppose Loan Mods In Chapter 13 – NACBA Makes Big Push

I just received this email from NACBA regarding the attempt to change the Bankruptcy Code to help homeowners:

Dear NACBA Colleague:

We are entering a critical period in our efforts to get Congress to pass the Chapter 13 mortgage loan modification legislation. As you know, NACBA, along with a broad coalition of allied groups, has been seeking passage of this legislation for almost two years. Our current national economic crisis, in large part driven by the endless spiral of home foreclosures, has put our proposals at the forefront of those under consideration by the new Congress and Administration. President Obama reiterated his support for our proposal yesterday when he unveiled his housing plan.

However, the banking industry is continuing to strongly oppose our efforts, notwithstanding the fact that their alternative voluntary loan modification programs have been revealed as abject failures. The mortgage industry must not be allowed to defeat this legislation by our failure to do all within our power to highlight the desperate need for this bankruptcy remedy.

NACBA will be implementing a stepped up public relations plan in support of loan modifications that goes beyond the media work we have done to date.

In addition, NACBA needs your involvement now to demand quick action by the Administration and Congress to provide relief to the millions of families at risk of losing their homes. Many of you recently attended NACBA’s Capitol Hill Meetings where we made our case directly in the halls of Congress. Now we must take the next step. We have included below a detailed plan highlighting the next actions we urge all members to take to get this legislation across the finish line.

The timetable for action on those items that require congressional approval in President Obama’s housing rescue plan is short: word is that work will begin next week and be wrapped up by April 3rd. The starting point for consideration on Chapter 13 mortgage modification will be the bills introduced in Congress – S. 61/H.R. 200. These bills are likely to be modified during the legislative process; NACBA will continue to be involved in the discussions over legislative language. We expect that the bills will be rolled into a broader housing package that includes the various proposals recommended on the Hill and supported by President Obama.

It may be hard to grasp why there is still resistance to such an obvious solution which would help stem the foreclosures facing so many American families, but the same banking industry that brought on much of the economic disaster facing the country still has money and connections in Washington to influence legislation. That is why we are asking for your help and that of your clients – our advocacy, our clients’ stories and the critical need for adoption of this legislation can and must make the difference this time. Remember, what you decide to do right now can play a major role in helping accomplish our goal – helping our clients, our communities, and our nation.

NACBA Legislative Committee