Court Ordered Mortgage Modifications - Slipery Slope Here We Come

I have to side with the Mortgage Brokers Association on this one. Not sure I want Courts Deciding who and how legal binding contracts can be modified to the befit or one individualsdesire to terminate the agree terms. We there come a day when lenders can go to court and ask the loan amount be raised to reflect the current market trend. I understand the hardship but a contract is a serious thing and accountability is the bases of a strong contract.

Mortgage Bankers Association (MBA), fights against court ordered mortgage modification

At a House Financial Services subcommittee hearing Wednesday, Barney Frank, D-Mass., supported cramdown legislation, which would allow bankruptcy judges to alter mortgages on primary residences, potentially lowering or cramming down a portion of the balance. According to words flowing from the mysterious brain of Mr. Frank, judges rather than jobs are the key to reducing the flow of foreclosures. David Kittle, Chairman of the Mortgage Bankers Association (MBA), issued a statement in strong opposition to the possibility. "Allowing judges to retroactively modify borrowers' mortgage balances will destabilize a mortgage market that desperately needs stability right now...

We ought to let [the Obama administration's Home Affordable Modification Program (HAMP)], still in its early stages, continue to take hold, rather than rushing to try to pass a measure that will do more harm than good. We hope that proponents of cram down will recognize the successes that the industry is making through HAMP and other means to help keep borrowers in their homes. Loan modifications cannot happen overnight. But as today's report from Treasury shows, servicers are making significant progress."

Sliding Down the Slippery Slope