In March, the House of Representatives passed a bill that would have allowed bankruptcy judges to lengthen repayment periods, cut interests rates and reduce principal balances on home mortgages.  The measure was intended to ease the financial strain for struggling homeowners.  However, the banking industry urged that the measure would further destabilize home prices.

Last week, the Senate voted down the “cram-down” legislation by a 45-51 margin, ending homeowner dreams of recovering their losses.  To read more, click HERE.

Final talks are underway in Senate on proposal targeting credit card fees and rates. House passed version of bill last week as Obama applies pressure.

By Jennifer Liberto, CNNMoney.com senior writer

WASHINGTON (CNNMoney.com) — A bill that targets credit card rate hikes and fees is headed for a final showdown in the Senate as key lawmakers negotiate a possible compromise measure.

The issue, which could go to the Senate floor this week, has grown increasingly popular, especially since President Obama and top White House advisers got involved in negotiations a few weeks ago.

“The president has created a strong impetus for immediate action,” said Travis Plunkett with the Consumer Federation of America.

Capitol Hill veterans say they expect the Senate to, at minimum, pass a bill that looks a lot like legislation that the House passed by a 357 to 70 vote last week. But the final shape of the bill depends on negotiations underway among key senators trying to reach a compromise.

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by Alan Zibel, AP

The Obama Administration said on Apr. 28 it is expanding its plan to stem the housing crisis by offering mortgage lenders incentives to lower borrowers’ bills on second mortgages.

During the housing boom, lenders readily gave out “piggyback” second loans that allowed consumers to make small down payments or avoid them entirely. While home prices soared, such mortgages were even extended to borrowers with poor credit scores and people who didn’t provide proof of their incomes or assets.

But those loans, which are attached to about half of all troubled mortgages, have been an obstacle to efforts to alleviate the housing crisis. That’s because borrowers who are trying to get their primary mortgage modified at a lower monthly payment need the permission of the company holding the second mortgage.

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WASHINGTON (Reuters) – The U.S. House of Representatives overwhelmingly voted on Thursday in favor of legislation to protect credit card users from hidden fees, sudden interest rate hikes and questionable billing practices.

The chamber voted 357 to 70 in support of the Credit Cardholders’ Bill of Rights, sponsored by New York Democrat Carolyn Maloney. This year, 107 Republicans voted in favor of the bill, compared with 84 Republicans voting for a similar bill last year.

“Today, the House sent a message to the American public that responsible regulation is part of the new era of financial responsibility,” Maloney said.

Banks, which opposed legislation, have warned it could reduce the amount of credit available and make it more costly to use a credit card.

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