GOP lawmakers take issue with loan modification plan - MarketWatch

GOP lawmakers take issue with loan modifications
Concerns raised by about bill to let bankruptcy judges alter mortgages

By Ronald D. Orol, MarketWatch
Last update: 6:14 p.m. EST Feb. 24, 2009

WASHINGTON (MarketWatch) - Citing recent statistics about high re-default rates on reworked home loans, Republican lawmakers expressed concerns Tuesday about the viability of a new Obama administration plan to modify mortgages for troubled homeowners.
"It is important that we have statistics and knowledge that there are high re-defaults on modified mortgages, but in fact these reports actually reinforce a lender's resolve not to modify," said Rep. Kenny Marchant, R-Texas, in a House Financial Services subcommittee hearing.
"What mortgage shareholder would urge its institution to modify or extend or renew a loan that has a 1-in-3 chances in default?" asked Marchant.
Marchant cited statistics released earlier in the day by the Office of Thrift Supervision showing that more than half of all modified mortgages defaulted again within six months.

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GOP lawmakers take issue with loan modification plan - MarketWatch

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