The American Bankers Association this week sent a letter to leaders in the Senate asking them to block an amendment drafted by Sen. Jeff Merkley, D., Ore., that among other things would require an independent third-party review of a troubled loan before a foreclosure could be finalized.
The American Land Title Association also opposes the language.
The measure, which has three co-sponsors, including Maine Republican Olympia Snowe, also creates a single-point of contact at servicers and ends the process of dual tracking where foreclosure papers can be filed even if loan modification talks are underway.
In a letter to Senate Majority leader Harry Reid of Nevada, and Republican leader Mitch McConnell of Kentucky, ABA lobbyist Floyd Stoner says the bill could destabilize housing and mortgage markets "by suspending legitimate foreclosures already in process, imposing new requirements on existing loan terms, and increasing costs for all homeowners as lenders factor in costs imposed by the new requirements."
At press time, lobbyists tracking the bill said it had been filed, but likely would not be attached to a pending economic development bill.
