House Passes Bankruptcy Reform

The House has passed a bankruptcy reform bill by a 315-to-113 vote, but the snake-bitten measure faces a more turbulent ride in the Senate.The bill would make it harder for consumers to use bankruptcy to walk away from credit card and auto loan debt. For mortgage lenders, it contains provisions that cut through delaying tactics used in residential foreclosures and expedites foreclosures in single-asset commercial property bankruptcies. In the Senate, Democrats are expected to delay consideration of the measure and insist on a provision that addresses abuses of the bankruptcy code by abortion protesters. The Mortgage Bankers Association of America hailed the House action and urged the Senate to pass the bill. "The provision that removes the $4 million cap on single-asset bankruptcies is very important to MBA's commercial members," said MBA chairman John A. Courson.