American Banker (04/07/08) P. 17; Sloan, Steve
Mortgage lenders that modify home loans would gain some protection against investor lawsuits under a bill introduced on April 4 by Sen. Hillary Clinton, D-N.Y. Concerns about legal challenges have led many lenders to oppose efforts to have them change the terms of mortgages in order to assist troubled borrowers who are facing foreclosure. The Mortgage Enhancement and Modification Act encourages mortgage providers to waive prepayment penalties, freeze rates on adjustable-rate mortgages, establish payment plans or write down payments. "Mortgage modification will help stabilize the financial market at a time when the housing crisis has already resulted in trillions of dollars in losses of housing wealth and investment capital," Clinton said in a press release.
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