Yesterday, a provision that would have allowed bankruptcy judges to cram-down mortgages for troubled homeowners failed to pass the Senate. But that evidently wasn’t enough for Sens. Jim DeMint (R-SC) and David Vitter (R-LA), who immediately after the vote sought to take down another piece of housing legislation, which is aimed at easing eligibility restrictions for the not-very-successful Hope for Homeowners program:
Jim DeMint, R-S.C., and David Vitter, R-La., began offering amendments to the bill shortly after the Thursday defeat of a controversial amendment to attach a bankruptcy provision known as “cramdown.” “The net effect of [the amendments] is to virtually bring down this bill,” [Sen. Chris] Dodd said.
Sen. Harry Reid (D-NV) said that he may pull the bill, even though “lawmakers on both sides of the aisle acknowledged that [Hope for Homeowners] is a failure because of overly restrictive eligibility requirements.”
Indeed, since the $300 billion program was launched last summer, just one homeowner (yes, one) has made it all the way through the process. Meanwhile, foreclosure filings jumped nearly 20 percent last month. Are those numbers that sit well with Vitter and DeMint?