Mortgage Reform Bill Passes House Committee

Law360, New York (December 12, 2007, 12:00 AM EST) -- A law to give bankruptcy courts more leeway to amend the terms of mortgages for homeowners facing foreclosure was reportedly passed on Wednesday by the U.S. House Judiciary Committee.

The proposed legislation, which would allow judge's more flexibility in modifying subprime mortgages to save bankrupt borrowers' homes, heads next to the House floor for a vote.

The mortgage reform bill, the result of a compromise reached Tuesday between warring committee members, was introduced in response to this year's subprime mortgage meltdown, which sent foreclosure rates soaring...
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