The US House of Representatives is voting on a bill that would let bankruptcy judges erase or modify some portion of outstanding mortgage debt for Las Vegas homeowners who are facing problems and also shield mortgage service providers loans from bondholder lawsuits.
Based on latest news report, this legislation would also help to strengthen the capacity of the Federal Deposit Insurance Corporation to deal with bank failures and solidify an increase in the insured deposit limit to $250,00. Which would extend protection to many more Las Vegas homeowners.
The legislation also increases the Federal Deposit Insurance Corp’s credit line with the U.S. Treasury to $100 billion from $30 billion, providing more financial resources to address what could be a growing wave of bank failures and/or problems.
Legislation’s Impact on Las Vegas Homeowners
The intent of this legislation is to ease the housing markets challenges here in Las Vegas and around the rest of the US, slowing foreclosures and easing some concerns homeowners may have with FDIC protection.
This legislation is good for the Las Vegas Real Estate Market and the rest of the US – it should help to reduce the number of foreclosures, bring in the legislative branch into the picture and help our overall economy as well.
The “mortgage cramdown” provisions are good thing for Las Vegas homeowners as it should push or motivate mortgage companies to loosen home loan terms at a level that has not been seen to date. Helping to ease the financial burdens for families that are facing inflexible companies and situations at present.
Safe Harbor for Lenders Protects Consumers
The legislation also contains a “safe harbor” provision that offers protection from lawsuits to mortgage services providers who may modify a loan to help a distressed homeowner. This is a beneficial provision as it gives mortgage services providers a sense of confidence about modifying loans without worrying about lawsuits, which in turn helps consumers by giving them more options with their lenders. Clearly, this legislation will help Las Vegas Homeowners.
