Four major industry trade groups are urging Senate Judiciary Committee members to vote against a bill that allows U.S. bankruptcy courts to set up loss mitigation programs where homeowners and servicers can negotiate a loan modification.

But in a new letter, lenders said they feel the Limiting Investor and Homeowner Loss in Foreclosure Act does not offer "true mediation" and lender participation would be "involuntary." The legislation was sponsored by Sen. Sheldon Whitehouse, D-R.I.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.