homeowner crisis

Bowing to the banking industry, House Democrats yesterday weakened legislation empowering bankruptcy judges to alter the terms of primary mortgages to prevent foreclosures. The changes — which came during a meeting of the House Judiciary Committee, headed by Rep. John Conyers (D-Mich.) — would prevent future homeowners from going the bankruptcy route.

It’s no secret that some powerful Democrats are none too pleased that the Bush administration has refused to use the $700 billion Wall Street rescue to help struggling homeowners facing foreclosure. Yesterday, Senate Banking Committee Chairman Sen. Chris Dodd (D-Conn.) floated a possible remedy, suggesting that any Detroit bailout coming down the pipe might also [...]