Press Releases

Release Date: December 12, 2007
Contact:
Travis Larson, (202) 962-7357, tlarson@sifma.org

House Bankruptcy Legislation Opposed by SIFMA

Bill at Odds with Intended Goals, Says SIFMA

Washington, D.C., December 12, 2007 – The Securities Industry and Financial Markets Association (SIFMA) today reiterated its opposition to H.R. 3609, the Emergency Home Ownership and Mortgage Equity Protection Act, after the bill went through markup in the House Judiciary Subcommittee on Commercial and Administrative Law.

“The Chabot compromise to move on H.R. 3609 creates new problems as it attempts to solve others.  While its intention is to protect homeowners, this bill would ultimately cause greater harm than good,” said Richard Hunt, senior managing director of government affairs at SIFMA.  “Giving bankruptcy judges the green light to change the terms of mortgage loans in a Chapter 13 proceeding is the wrong path to take.  Moving this bill now could harm the secondary mortgage market, dry up liquidity and increase the cost of mortgages for all homeowners.”

“Congress and federal regulators have already taken several positive steps to address the problem, and the financial services industry is working to stabilize the mortgage market,” added Hunt.  “The public and private sectors are working in sync to find constructive solutions that will reduce foreclosures, reach out to borrowers and keep American families in their homes.  The committee should give those efforts time to work before creating more incentives to go into bankruptcy.”       

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The Securities Industry and Financial Markets Association brings together the shared interests of more than 650 securities firms, banks and asset managers. SIFMA's mission is to promote policies and practices that work to expand and perfect markets, foster the development of new products and services and create efficiencies for member firms, while preserving and enhancing the public's trust and confidence in the markets and the industry. SIFMA works to represent its members’ interests locally and globally. It has offices in New York, Washington D.C., and London and its associated firm, the Asia Securities Industry and Financial Markets Association, is based in Hong Kong.