WASHINGTON — Moved to action after a two-week recess and hearingthe complaints of constituents, members of Congress are nowpreparing legislation to offer help to troubled homeowners facingforeclosure. A bipartisan effort, finds Senate Majority LeaderHarry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.)agreeing on aspects of a broad package of legislation, theForeclosure Prevention Act of 2008.

Various draft bills, including House Financial ServicesCommittee Chairman Barney Frank's, (D-Mass.) and a similar planoffered in the Senate by Sen. Chris Dodd, (D-Conn.) along withprovisions offered by Reid and Sen. Dick Durban (D-Ill.) may becombined in some form and agreed upon by both parties and come tothe floor as early as this afternoon.

Yesterday, NAFCU sent a comment letter to both Reid andMcConnell, urging that the broad scope of Title IV — HelpingFamilies Save Their Home in Bankruptcy Act of S. 2636, theForeclosure Prevention Act of 2008 as initially introduced wouldhave allowed bankruptcy judges to alter all mortgages, rather thanjust subprime loans. After consulting with Sen. Durbin, whointroduced the bill late last year, he agreed to compromiselanguage that would limit Title IV to only subprime andnon-traditional loans, exempting certain interest-only prime loansthat were not predatory in nature.