Nov. 27, 2007—House Financial Services Committee Chairman Barney Frank, D-Mass., has set a hearing for Dec. 6 to address H.R. 4178, the Emergency Mortgage Loan Modification Act, which was introduced recently by Rep. Mike Castle, R-Del.
H.R. 4178 would create a safe-harbor from legal liability for mortgage servicers that modify "at-risk" mortgage loans. This window, which would be set for six months, could help struggling homeowners avoid falling delinquent or into foreclosure by encouraging servicers to modify the terms of their loans.
This bill is the latest attempt to help calm the trouble in the subprime housing market. Recently, the House passed another bill, H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007. In a recent announcement regarding H.R. 4178, Castle maintains that the bill would help thousands of homeowners facing foreclosure in the immediate future.