Durbin and MBA Spar Over Modification Issue

Sen. Dick Durbin, D-Ill., went after the Mortgage Bankers Association for opposing his efforts to allow bankruptcy judges to modify loans while the servicers MBA represents continue to do little to prevent foreclosures. The Senate assistant majority leader said at a Senate Judiciary Committee hearing that the "very groups that helped to create this crisis" have opposed his bankruptcy bill. MBA chairman David Kittle told Sen. Durbin that progress is being made in modifying mortgages. "We would like to see more," he said. However, allowing homeowners to file for bankruptcy will provide a false hope for many homeowners, Mr. Kittle testified, because two-thirds will likely end up losing their homes. Other witnesses at the hearing expressed doubts about this failure rate. Meanwhile, Sen. Durbin expects to pass his bankruptcy bill next year. "Change is coming to Washington. I am confident that early next year we will be able to take effective steps to finally address the economic crisis where it started - by helping families save their homes."