Push back on profit hungry mortgage bankers

We are facing a catastrophic housing crisis in America. There is one foreclosure in the U.S. every 13 seconds, and more than 8 million homeowners are at risk over the next five years. Worse yet, the rash of foreclosures drags down property values across the board. This threatens the life savings of millions of Americans through absolutely no fault of their own, and cripples our economy more broadly.

The simplest and most effective immediate solution to this growing epidemic is to allow bankruptcy judges the power to alter the terms of mortgages most threatened by foreclosure. Under current bankruptcy law, judges can alter terms between creditors and debtors on all kinds of assets (investment properties, cars, etc.) but not on primary residence mortgages.

Credit Suisse estimates that allowing the courts to modify distressed mortgages could help save 1.8 million homes and reduce foreclosures by 20%, all without costing taxpayers a dime.

And, preventing unnecessary foreclosures doesn't just help individual families stay in their homes. It also helps stabilize property values for everyone. This will protect Americans' life savings and help our economy spring back to life.

In February, President Obama announced a plan of action, and asked Congress to send him legislation allowing bankruptcy judges to modify the terms of troubled mortgages. Congressman Conyers and Senator Durbin have introduced legislation to do just that.

But, the very people who got us into this mess are fighting President Obama's efforts to get us out. Even though Citigroup and other big lenders who once opposed allowing bankruptcy judges to help have come around,4 the Mortgage Bankers Association (MBA) won't budge. MBA has spent nearly $20 million lobbying Congress since 1998, and increased its lobbying last year by more than 1000% over what it spent in 2000.5

Sign our petition to tell MBA to back off, and stop fighting responsible solutions to the housing crisis they helped cause.

To visit Brave New Foundation's website and learn more, click here.

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	Petition Text: Mortgage Bankers Association, You helped cause the housing crisis through irresponsible lending decisions. Now, while 8 million American homeowners face foreclosure, you’re standing in the way of the clearest solution. Drop your opposition to allowing bankruptcy judges to revise the terms of troubled mortgages.
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