Dems must not cave on allowing bankruptcy judges authority to modify mortages on primary residences.

[flpoljunkie]

(We Democrats cannot bail out Wall Street and leave homeowners high and dry.)

The remaining sticking points in talks with the Treasury, Frank said, are whether to limit executive pay and whether bankruptcy judges should be given authority to modify mortgages on primary residences. But the bankruptcy provision, which is fiercely opposed by the banking industry and many Republicans, is widely viewed as a bargaining chip. And if Republican lawmakers accept limits on executive pay, the White House may find it difficult to resist.

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/23/AR2008092300284_2.html?sid=ST2008092400966&s_pos=

[flpoljunkie]

1. This appears to be the sticking point now. Evidently, R's don't really want to help Main Street.

Frank, however, said Democrats and the Bush administration remain far apart on a proposal to give bankruptcy judges more power to adjust mortgage rates and another to limit the pay of executives who sell distressed assets to the government.

Senate Majority Leader Harry Reid (D-Nev.) reiterated Tuesday afternoon the importance of giving bankruptcy judges greater flexibility. He noted that judges can readjust mortgage terms if a borrower facing bankruptcy owns multiple homes.

Republicans say they are willing to curb executive compensation but remain inflexible on greater power for bankruptcy judges. One Republican familiar with the talks said the proposal would undermine the sanctity of financial contracts and could also erode the value of the very distressed assets the Treasury Department is proposing to buy.

http://thehill.com/leading-the-news/bailout-trips-market-dips-on-mortgages-2008-09-23_2.html

[flpoljunkie]

2. Has Obama specifically mentioned having bankruptcy judges intervene at the Dunedin rally?

[flpoljunkie]

3. Evidently, this won't be in bill, but gov will be required to help homeowners renegotiate mortgages.

Democratic demands that Congress be given greater authority over the bailout and that the government be required to help homeowners renegotiate their mortgages so they have lower monthly payments already have been accepted in principle.

Under the bailout bill, which will let the government buy huge amounts of toxic mortgage-related assets, "we're now the biggest mortgage holder in town, and we can do serious foreclosure avoidance," Frank said.

http://talkingpointsmemo.com/news/2008/09/deal_said_to_be_near_on_big_fi.php