Bush Vows to Veto a Mortgage Relief Bill

Go to New York Times original
WASHINGTON — President Bush sided with banks and mortgage lenders on Tuesday, threatening to veto a bill being offered by Senate Democrats that would give more bargaining power to homeowners who face foreclosure.

Opening what is likely to be an intense political battle in the deepening mortgage crisis, the White House said it strongly opposed the bill, which would let bankruptcy court judges modify the terms of a mortgage as part of the restructuring of a debt in a bankruptcy filing.

Supporters of the legislation say it could prevent as many as 600,000 home foreclosures affecting people who took out tickler or other complicated mortgages and now face steep increases in interest rates and monthly payments.

Consumer and civil rights groups argue that the change in bankruptcy law would provide the surest way of helping families renegotiate mortgages that have been bundled into complex securities and sold to investors.

more...