Emergency Home Ownership and Mortgage Equity Protection Act of 2007

The Emergency Home Ownership and Mortgage Equity Protection Act of 2007 (H.R.3609) was a bill in the 110th Congress "to amend title 11 of the United States Code with respect to modification of certain mortgages on principal residences, and for other purposes." (Official title.)

Current status


Bill summary

 * Amends federal bankruptcy law governing a chapter 13 debtor (adjustment of debts of an individual with regular income) to prohibit the holder of a claim in bankruptcy which is secured by debtor's principal residence from adding fees, costs, or charges while the case is pending, unless such claimholder gives timely notice to both debtor and the bankruptcy trustee.
 * Revises requirements for the discretionary features of a chapter 13 debtor's plan. Removes the prohibition against modification of the rights of a holder of a claim secured only by an interest in real property that is the debtor's principal residence. (Thus allows a plan to modify such rights.)
 * Authorizes a chapter 13 bankruptcy plan to provide for payment of allowed claims secured by the debtor's principal residence over a period that exceeds a specified time frame.
 * Eliminates the pre-petition credit counseling requirement for a chapter 13 debtor facing foreclosure if the debtor submits a certification to the court that the holder of a claim secured by the debtor's principal residence has initiated foreclosure on that residence.
 * Adds to conditions for court confirmation of a plan in bankruptcy that the holder of an allowed claim secured by the debtor's principal residence shall retain the lien securing such claim until the claim is paid.
 * Excludes from final discharge of a debtor from all debts any allowed claim secured by the debtor's principal residence before such claim is paid.

Supporters

 * Center for Responsible Lending
 * Consumer Action
 * Leadership Conference on Civil Rights
 * National Community Reinvestment Coalition
 * Philadelphia Unemployment Project

Opponents

 * American Bankers Association
 * American Financial Services Association
 * Independent Community Bankers of America
 * Mortgage Bankers Association

Articles and resources

 * National Association of Consumer Advocates Subprime Swing: Politicians Seek Answers to US Housing Crisis January 18, 2008.


 * TheStreet.com	Mortgage Bankers Fault Bankruptcy Bill	January 14, 2008.