WASHINGTON – The Senate yesterday voted to eliminate a controversial provision from the pending mortgage rescue bill which would have allowed bankruptcy judges to restructure the terms of mortgages.
The provision had been opposed by the credit union lobby, which had worked to limit its effect by carving out most of the mortgages made by credit unions. Still, the provision could reemerge as the legislation moves forward, especially after the House votes on its own version of the mortgage bill, then tries to reconcile the separate versions.
The Senate was debating the bill last night and is expected to vote final passage today of the measure which would, among the things, provide as much as $100 million in funding for home ownership counseling for at-risk borrowers; provide $10 billion for state housing agencies to help them refinance troubled subprime loans; and provide a $7,000 tax credit to anyone who buys a home that has been foreclosed on or has been sitting vacant for a significant period of time.
