This is a summary of HR1106, a bill that has been passed by the congress and should be voted on by the Senate any day, hopefully.  I personally believe that this bill should be passed quickly to help those hit hardest by the real estate crisis.  It is summarized below. 

It is time for the bankruptcy judges to have more authority to alter  the interest rates and terms of mortgages affecting the consumer forced to file bankruptcy. 

Mortgage Restructuring In Bankruptcy

Key Votes: HR 1106 Issues: Budget, Spending and Taxes, Business and Consumers, Housing and Property Issues Date: 03/05/2009 Sponsor: Rep. Conyers, John Jr. (D-MI)

Roll no. 104 Bill Passed (House) How members voted (234 - 191)

Vote to pass a bill that grants bankruptcy judges expanded powers to alter the terms of mortgages on primary residences.

HR 1106: To prevent mortgage foreclosures and enhance mortgage credit availability.

-Grants bankruptcy court judges the authority to reduce interest rates or extend the repayment period up to 40 years for mortgages (Sec. 103).

-Requires homeowners who receive assistance under this act and sell their home within the first year for a profit to pay their lender up to 90 percent of the difference between the sales price and the amount due under their original mortgage (Sec. 103).

-Prohibits aid to homeowners who are able to meet their original or modified mortgage payments without assistance or who obtained credit through actual fraud (Sec. 105).

-Amends standards for participation in the HOPE for Homeowners Program by excluding borrowers who intentionally defaulted on their mortgage, who have been convicted of fraud or those who earn more than $1 million (Sec. 202).

-Raises FDIC depositor insurance to permanently cover $250,000 instead of $100,000 of each deposit at participating institutions (Sec. 204).

-Establishes a Nationwide Mortgage Fraud Task Force to investigate mortgage fraud in and aid enforcement of mortgage fraud laws (Sec. 302).

Link to Legislation: http://thomas.loc.gov/cgi-bin/query/z?c111:hr1106:

House Passage: 03/05/2009 : Bill Passed 234 - 191 (Roll no. 104)

Senate Referred to Committee: 03/11/2009 : Banking, Housing and Urban Affairs

Rep. Conyers, John Jr. (D-MI)

PVS provides summaries for each version of the bill selected as a key vote. The summary does not necessarily reflect the final version of the bill. For further status information, call the Voter's Research Hotline at 1-888-VOTE-SMART (1-888-868-3762).