May 20, 2009

Congress passes the "Helping Families Save Their Homes Act"

Although the bill to allow bankruptcy judges to modify loans on primary residences was defeated this month, Congress passed the "Helping Families Save Their Homes Act". This bill encourages lenders to modify an individual's mortgage if the homeowner agrees to pay an insurance premium. The loan modification would exchange the borrower's high interest or variable rate for a lower 30-year fixed rate backed by the FHA. The program is set to expire in 2011. This bill has been sent to President Obama for review.