Capital Markets Subcommittee Examines Legislation to Facilitate Mortgage Loan Modifications by Servicers

April 16, 2008

Washington, DC — Congressman Paul E. Kanjorski (D-PA), Chairman of the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, today announced that the Subcommittee will hold a hearing on H.R. 5579, the Emergency Mortgage Loan Modification Act of 2008, on Tuesday, April 15, 2008 at 2:00 p.m. Chairman Kanjorski and Congressman Michael N. Castle (R-DE), a senior Member of the Capital Markets Subcommittee, recently introduced H.R. 5579.  This bill aims to clarify the responsibilities of and provide a safe harbor from legal liability for mortgage servicers who help troubled borrowers remain in their homes by engaging in loan modifications and workouts according to specific criteria.

“H.R. 5579 is one potentially important and effective response to the current problems in the mortgage marketplace. In brief, our bipartisan bill aims to help keep more families experiencing financial difficulties in their homes by eliminating legal uncertainty for mortgage servicers. If enacted, this legislation ought to promote more loan modifications by the private sector,” said Chairman Kanjorski. “I look forward during the hearing to discussing this legislation with a number of interested parties and to determining what other changes we need to make to the bill. With a similar measure now pending in the Senate, we have an opportunity with this hearing to advance the legislative process and reach a bicameral consensus quickly.”

“I believe Congress can take specific steps to ensure loan servicers work with home owners to keep mortgages solvent where ever practical,” said Congressman Castle.  “This hearing presents us with a goal to advance the issue and I will continue to work with Congressman Kanjorski and other members of the Financial Service Committee to achieve that goal.”

Witness List & Prepared Testimony:

  • Mr. Ralph DaLoisio, Managing Director, Natixis Structured Finance Group, on behalf of the American Securitization Forum
  • Mr. Robert E. Story, Jr., President, Seattle Financial Group, and Vice Chairman, Mortgage Bankers Association, on behalf of the Mortgage Bankers Association
  • Mr. Marlo A. Young, Partner, Thacher Proffitt & Wood LLP

Available Member Statements:

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