In Capitol Hill’s rush to aid borrowers and stem the tide of foreclosures, are investors being thrown under the bus?
Many industry participants have been wary of Congress meddling too much in a market recovery plan, so it’s probably no surprise there would be some backlash to a proposed bill by House Financial Services Committee Chairman Barney Frank (D-Mass.) that aims to increase loan modifications by protecting servicers from investor lawsuits. The bill, as reported by ASR’s sister publication American Banker, could be included in a broader housing rescue plan that Frank is expected to introduce before Congress adjourns for its Easter vacation.
