H4H Revamp May Be Added to Cramdown Bill

House Financial Services Committee chairman Barney Frank, D-Mass., might attach his bill to revamp the Federal Housing Administration's Hope for Homeowners program to a bankruptcy mortgage cramdown bill that is making its way to the House floor soon. "Bankruptcy is not a fun thing for anyone. So I want to have a series of alternatives to bankruptcy," Rep. Frank told reporters. The Hope for Homeowners bill (H.R. 703) would make the FHA program more effective in restructuring underwater mortgages. The original bill also contained a safe harbor provision to shield servicers that modify loans from investor lawsuits and provisions to strengthen the Federal Deposit Insurance Corp. But Rep. Frank has divided H.R. 703 into three separate bills so they can be attached to other related legislation. Rep. Frank also might attach the safe harbor provision to the bankruptcy bill.