Housing Bill Moves Through The House

WASHINGTON – As homeowners seek mortgage relief during the worseningeconomy, U.S. Rep. Diana DeGette (D-CO) today supported H.R. 1106, Helping Families Save Their Homes Act, which passed on a vote of 234 to 191. The Helping Families Save Their Homes Act builds upon President Obama's comprehensive Homeowner Affordability and Stability Plan. The President announced details of his plan yesterday, including a website, www.financialstability.gov, with an eligibility quiz for homeowners struggling to make their payments.

"As millions of hardworking Americans face losing their homes duringthis economic crisis, the House today took another step to help ourcommunities and the ailing housing market," said DeGette. "This billimproves the ability of lenders to work with responsible homeowners whoface financial calamity unless sensible modifications are made to theirmortgages. Not only will this measure help stabilize households, but itis also designed to prevent further foreclosures from hitting themortgage market and harming our economy. Congress has more work aheadwith President Obama to address the housing crisis in this country."

This Act gives bankruptcy judges the ability to modify existingmortgages for families who file for Chapter 13 bankruptcy as anincentive to spur lenders into voluntarily modifying loans. Withoutspending one taxpayer dollar on this legislation, it could keephundreds of thousands of families across the country from facingforeclosure and losing their home. It gives lenders the confidence tomodify loans by protecting them from some lawsuits. The costs tolenders are less when loan modifications can be made as opposed tounder foreclosures. And it spurs mortgage refinancing by fixing theFederal Housing Administration's Hope for Homeowners Program, reducingfees and offering new incentives for lenders. In Colorado, there are57,068 past due mortgages.