House Consideration of H.R. 1106

The House of Representatives met as a "Committee of the Whole on the State of the Union" on Thursday to consider H.R. 1106, the "Helping Families Save Their Homes Act of 2009." H.R. 1106 includes provisions that will allow Bankruptcy Judges to modify certain mortgages on principal residence in Chapter 13 bankruptcy. After the Committee's consider of H.R. 1106, the full House did not vote on the bill. A vote may be set next week.

A Committee of the Whole is a committee consisting of all members of the House of Representatives and is used to expedite House action. The Committee of the Whole cannot pass a bill, but after it is done with its debate and amendments to the bill, "the committee rises" and its Chair reports the bill back to the full House of Representatives, where it is voted on or sent back to a legislative committee from which it was reported.

The comments of the various Congressmen can be found on the House's website.

C-Span Live Proceedings on Floor of House of Representatives

C-Span live debate on the floor of the House of Representatives on H.R. 1106 the "Helping Families Save Their Homes Act of 2009".

Although last evening the Washington Post reported the expectation that H.R. 1106 would pass today, C-Span reports this afternoon that a vote on passage of H.R. 1106 has been postponed until next week.

Action by House Rules Committee on H.R. 1106

The House Rules Committee's website indicates that today at 12:00 p.m. was the deadline for amendments to H.R. 1106 the "Helping Families Save Their Homes Act of 2009" to be submitted. H.R. 1106 includes provisions that will allow certain principal residence mortgage modification in Chapter 13 bankruptcy. The Committee's website lists the numerous proposed amendments that were submitted by the various Congressmen. The Rules Committee was set to meet today at 4:00 p.m.

One interesting proposed amendment by Congress John Conyers of Michigan would require the Bankruptcy Court to use FHA appraisal guidelines for property analysis where the fair market value of a home is in dispute.

Bankruptcy Mortgage Modification Bill Expected on House Floor on Thursday

It is reported that H.R. 1106, the "Helping Families Save Their Homes Act of 2009" will be on the floor of the House of Representatives on Thursday as part of a major housing package. H.R. 1106 includes provisions that will allow modification of mortgages on principal residence in a Chapter 13 bankruptcy case.

Bankruptcy Mortgage Modification Expected on House Floor Thursday

It is reported that the "Helping Families Save Their Homes Act of 2009" will be on the floor of the House of Representatives on Thursday as part of the major housing package. H.R. 1106 includes provisions to allow modification of mortgages on principal residences.

Report that Congress to Vote on Bankruptcy Mortgage Bill this Week

House Speaker Nancy Pelosi stated today that she expects H.R. 200, "The Helping Families Save Their Homes in Bankruptcy Act", to reach the floor of the House of Representatives this week on Thursday. Reportedly it will be packaged with other bills already approved by the House Financial Services Committee relating to FDIC insurance, Hope for Homeowners, and other issues. Apparently, the Senate will vote on its version of the bankruptcy bill, S. 61, after the House's action.

The Helping Families Save Their Homes in Bankruptcy Act would allow bankruptcy judges to modify mortgages on principal residences by reduction of the principal to market value, modification of interest rate, and extension of term of payments.

Homeowner Affordability and Stability Plan

Today's remarks by President Obama on the mortgage crisis.

The U.S. Department of Treasury has published questions and answers for borrowers about the Homeowner Affordability and Stability Plan. It is divided into q & a's for borrowers who are current with their mortgage and those who are at the risk of foreclosure.

The U.S. Department of Housing and Urban Development's website has various links to further information.

Fannie Mae's website and the Treasury Department's financialstability.gov also have further information.

Former Secretary of Labor Robert Reich wrote a blog post on the proposal stating that the two most important aspects of the proposal are its support for bankruptcy modification of mortgage and the administration's support for Fannie Mae and Freddie Mac.

New York Times editorial supporting bankruptcy reform allowing principal residence mortgage modification.

Obama to Endorse Bankruptcy Mortgage Modification

The media reports today that President Obama will endorse legislation to allow for modification of mortgages in chapter 13 bankruptcy as part of his housing and foreclosure plan (the Homeowner Affordability and Stability Plan) in his press conference today in Arizona.

The media now reports that President Obama Administration will endorse legislation go on the record today endorsing legislation to allow for modification of mortgages in chapter 13 bankruptcy. This change in the bankruptcy law is part of the broader housing/foreclosure package being announced by President Obama in Phoenix today (12:45 p.m. ET).
NACBA leaders will be briefed by Administration officials this afternoon on the package and also will be in discussions with allies on Capitol Hill to discuss specific legislative language and strategies for moving the legislation forward in the short term.
Within the next 24 hours, you will receive a follow up URGENT CALL TO ACTION from NACBA's leadership that will include specific steps for getting involved in the effort and provide all the tools you need to be an effective advocate. I urge you to be on the lookout for that email and to respond.

Report that Bankruptcy Mortgage Bill to be part of Obama's Housing Plan

The Washington Post reports today that the bankruptcy mortgage modification bill will be part of President Obama's housing plan to be announced this Wednesday in Arizona. This plan would pull together into one plan the various housing measures presently before Congress.

The proposed bankruptcy legislation will allow bankruptcy judges to modify mortgages on principal residences by reducing their principal down to the property present fair market value and by changing the interest rate.

The Effective Date of the Proposed Bankruptcy Bill

Section 8 of the proposed H.R. 200, the "Helping Families Save Their Homes in Bankruptcy Act of 2009" (which has not yet been enacted by Congress) provides that its effective date is the date of its enactment, but that its provisions apply to bankruptcy cases filed "before, on, or after" the date of its enactment.

Congressional leaders announced in January that the bill would be moved quickly and it has been approved by the House Judiciary Committee. There has not been much public information during the past week about movement of the bill except that there was a desire for the bankruptcy bill not to be part of the economic stimulus bill.