Americans for Fairness in Lending

(February 27, 2008) The Senate will vote soon on S. 2636, a new bill that would prevent unnecessary foreclosures and stabilize the housing market.  By lifting the ban on court-supervised loan modifications for qualified homeowners, this bill could enable 600,000 families nationwide keep their homes.  Foreclosure rates are rapidly increasing, and experts agree that without sensible policy changes, the problem will get worse during the remainder of this decade.  It isn’t fair that people can modify loans if they run into trouble paying for their second homes, their yachts, their investment properties, or their small businesses – but not their primary residences.  It also isn't fair that mortgage lenders can get assistance from courts when they get in trouble, but homeowners do not have that option.  Without this remedy, massive foreclosures will continue to weaken the entire economy.