Foreclosure relief bill closer to House vote

WASHINGTON — A bill to save homes from foreclosure by letting bankruptcy judges alter mortgage terms moved closer to a House vote on Tuesday. The lending industry has worked unsuccessfully to stop the bill.

The House Judiciary Committee voted 21-15 to send the measure to the full House. Committee Chairman John Conyers, D-Mich., amended the original bill so it would apply only to mortgages that exist before the bill becomes law.

Conyers said the amendment would address complaints from the lending industry that the risk of altered mortgage terms would force lenders to raise costs for borrowers. The risk would be eliminated for new borrowing under the amendment.

Republicans opposed the bill, saying it still would increase lending costs and encourage borrowers to file for bankruptcy and overwhelm the courts.

Conyers said the bill "represents one of the most tangible steps we can take to limit the fallout from the real estate depression sweeping the nation."