The mortgage modification bill (also referred to as the "Cramdown Bill") made it through the House of Representatives on March 5, but now it has to get through the Senate where it has a much tougher fight.
Will it pass? The short answer is: Yes, it has a good chance of passing, but it may look very different by the time it gets out of the Senate.
That said, nothing is going to happen with it until April 20 at the earliest as the Senate starts its two-week Easter recess on April 6. And currently there are enough unresolved issues such that any decision is unlikely before April 6.
The bill needs 60 votes to be able to pass over opposition and it appears that supporters haven't reached that threshold yet. The struggle essentially pits Democrats in support of a cramdown bill against Republicans (and the finance industry) who oppose it. However, the Democrats have also been facing opposition from moderates in their own party.
Those in favor of the bill include Senate Majority Whip Dick Durbin (D-IL) who helped garner the support of Citigroup for the House version of the bill (in exchange for a provision limiting the bankruptcy option to mortgages that exist before the bill is passed). Some of the other key supporters include Senator Chris Dodd (D-Conn.), the Chairman of the Senate Banking Committee and Senator Charles Schumer (D-NY) who is a member of the Senate Finance Committee and the Senate Banking Committee. Notably, both of whom traditionally are regarded as having close ties to the financial industry but are supporting the bill nonetheless. Also of note is Senator Jeff Merkley (D-Ore.) who made the case for mortgage modification and protecting homeowners in this speech [INSERT LINK: http://www.youtube.com/watch?v=pSQ_0b84e2s&feature=player_embedded] on the Senate floor on March 25. Hopefully this means they'll have enough expertise and savvy to get the bill through without it getting so watered down that it's of little help to homeowners facing foreclosure.
Two of the key opponents to the bill appear to be Senator Evan Bayh (D-Ind.), a member of the Senate Finance Committee, and Senator Arlen Spector (R-Pa.) Interestingly, Bayh's home state of Indiana has a huge foreclosure problem, yet he opposes the bill. Some [INSERT LINK: http://firedoglake.com/2009/03/25/evan-bayh-building-bridges-to-nowhere/] have cited Bayh's significant ties to and donations received from the finance industry.
Essentially, if the the finance industry gets its way, the bill will be limited to include only subprime mortgages, which wouldn't in actuality help many people since most subprime mortgages have already run their course.
Needless to say, everyone who cares about actually helping both homeowners (and our country, for that matter) dig out of the current mess is fighting strongly to keep the House version of the bill in tact. There are no clear indications at this point in time, however, that the bill will pass in a form that is ultimately of any benefit to struggling homeowners.
But the fight's just beginning, so stay tuned.
Will it pass? The short answer is: Yes, it has a good chance of passing, but it may look very different by the time it gets out of the Senate.
That said, nothing is going to happen with it until April 20 at the earliest as the Senate starts its two-week Easter recess on April 6. And currently there are enough unresolved issues such that any decision is unlikely before April 6.
The bill needs 60 votes to be able to pass over opposition and it appears that supporters haven't reached that threshold yet. The struggle essentially pits Democrats in support of a cramdown bill against Republicans (and the finance industry) who oppose it. However, the Democrats have also been facing opposition from moderates in their own party.
Those in favor of the bill include Senate Majority Whip Dick Durbin (D-IL) who helped garner the support of Citigroup for the House version of the bill (in exchange for a provision limiting the bankruptcy option to mortgages that exist before the bill is passed). Some of the other key supporters include Senator Chris Dodd (D-Conn.), the Chairman of the Senate Banking Committee and Senator Charles Schumer (D-NY) who is a member of the Senate Finance Committee and the Senate Banking Committee. Notably, both of whom traditionally are regarded as having close ties to the financial industry but are supporting the bill nonetheless. Also of note is Senator Jeff Merkley (D-Ore.) who made the case for mortgage modification and protecting homeowners in this speech [INSERT LINK: http://www.youtube.com/watch?v=pSQ_0b84e2s&feature=player_embedded] on the Senate floor on March 25. Hopefully this means they'll have enough expertise and savvy to get the bill through without it getting so watered down that it's of little help to homeowners facing foreclosure.
Two of the key opponents to the bill appear to be Senator Evan Bayh (D-Ind.), a member of the Senate Finance Committee, and Senator Arlen Spector (R-Pa.) Interestingly, Bayh's home state of Indiana has a huge foreclosure problem, yet he opposes the bill. Some [INSERT LINK: http://firedoglake.com/2009/03/25/evan-bayh-building-bridges-to-nowhere/] have cited Bayh's significant ties to and donations received from the finance industry.
Essentially, if the the finance industry gets its way, the bill will be limited to include only subprime mortgages, which wouldn't in actuality help many people since most subprime mortgages have already run their course.
Needless to say, everyone who cares about actually helping both homeowners (and our country, for that matter) dig out of the current mess is fighting strongly to keep the House version of the bill in tact. There are no clear indications at this point in time, however, that the bill will pass in a form that is ultimately of any benefit to struggling homeowners.
But the fight's just beginning, so stay tuned.
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