Jul 29 02:30 PM US/Eastern By ANNE FLAHERTY Associated Press Writer WASHINGTON (AP) - A senior House Democrat threatened banks Wednesday that if they don't volunteer to save more homeowners from foreclosure, Congress will make them. In a sternly worded statement, Rep. Barney Frank said Congress will revive legislation that would let bankruptcy judges write down a person's monthly mortgage payment if the number of loan modifications remain low. Frank, chairman of the House Financial Services Committee, also said his committee won't consider legislation to help banks lend unless there is a "significant increase" in mortgage modifications. Frank's statement was aimed at adding momentum to a deal struck Tuesday between Treasury Secretary Timothy Geithner and more than two dozen mortgage companies. The two sides agreed to set the goal of adjusting 500,000 loans by Nov. 1. But it was far from clear whether that would happen. Loan servicers say they are still trying to play catch up to a deluge of customer requests by hiring and training thousands of new employees. Banks also are trying to sort through which customers face a legitimate financial hardship. Also, many loans have been bundled and sold to investors as securities, complicating efforts to modify the terms. Congress tried earlier this spring to pass legislation that would give people a chance to keep their homes by filing for bankruptcy. But while President Barack Obama said he supported the measure, he did little to see it through and it was defeated amid an aggressive lobbying effort by banks. The measure failed in the Senate by a 45-51 vote, falling 15 votes short of the 60 needed to overcome procedural hurdles. "People in the servicing industry and in the broader financial industry must understand that if this last effort to produce significant modifications fails, the argument for reviving the bankruptcy option will be extremely strong, and I think there is a substantial chance that the outcome will be different," Frank said.
Barney Frank is a dumbass.... he gives a fat check to the Banksters and in return, they "promise" to help out homeowners... Sure they would. Now he has egg on his face and a growing and grumbling constituency. Meanwhile, the banks are having record profits again. Wow.. who saw that coming?
Couldn't he walk over to FHA offices and tell them to stop foreclosures. It is a fed gaurantee program, cough up the insurance money and those homeonwers can have a free ride.
"Barney Frank threatens banks to stop foreclosures" When is he going to threaten to stop sucking dicks?
Wow, that's a great idea! We can solve this crisis right now, just order banks to not ever foreclose. While we're at it, let's pass a law that says credit card companies can't ding your credit for not paying as well! And stores can't make you pay for stuff! This is GREAT! We can have all the stuff we want and we won't have to pay for it. We just have to pass a law. Hey wait, here's an even BETTER idea! Stores have to pay us to shop there. This will bring the economic crisis to a screaming halt! Not to mention the economy in general. HTF does Barney Frank manage to find his way out of his house in the morning? It must have taken him hours before he finally hired a guide to show him the way.