Bush Vows to Veto a Mortgage Relief Bill

New York Times (02/27/08) P. C4; Andrews, Edmund L.
Mortgage lenders will do whatever they can to defeat a bill by Senate Democrats that would give bankruptcy judges the authority to modify the terms of a mortgage as they restructure a borrower's debt in a bankruptcy filing, Mortgage Bankers Association chief lobbyist Steve O’Connor says of the industry's campaign against the legislation. President Bush on Feb. 26 vowed to veto such a bill, which advocates say has the potential to keep 600,000 households from losing their homes to foreclosure. O'Connor says such a change in the bankruptcy law would force mortgage lenders and investors to respond to the added risk. "They will likely charge a higher interest rate, likely charge more points on the mortgage and likely demand higher down payments," he warns.