Loan Modification In Bankruptcy To Be On The Table If Foreclosure Frustration Continues: Frank

MarketWatch reports:

• House Financial Services Committee Chairman Barney Frank on Monday said that if foreclosures are not on the decline early next year he expects lawmakers to revive efforts to change bankruptcy law and let judges adjust the terms of mortgages.

• "If we come back in February and there is frustration that efforts at reducing foreclosure are not working, we can do bankruptcy law changes to get at the problem," Frank told participants in an Office of Thrift Supervision conference. "Bankruptcy cuts through that." [...] Should lawmakers consider the measure again, it would give judges the authority to modify mortgages such as reduce principal or interest rates or lengthen the amount of time to pay back the mortgages.

Source: Frank: Bankruptcy law changes could be on the table next year.