RENEE MONTAGNE, Host: Democratic lawmakers are also pushing a bill that would allow bankruptcy judges to block home foreclosures. They're not getting much support from banks. Many bank CEOs testifying before Congress yesterday said they oppose changes to the bankruptcy laws. NPR's Chris Arnold reports.</s>CHRIS ARNOLD: Housing experts say two million more foreclosures are coming over the next couple of years. That's really bad for the economy. And regulators say the lending industry has been paralyzed and unable to avoid preventable foreclosures. That is, say, where the homeowner has a decent job and can afford their house at its current market value, but they're stuck in, say, a really high-interest-rate loan.</s>RICH LEONARD: Some of the estimates today there are hundreds of thousands or people in this category.</s>CHRIS ARNOLD: That's Judge Rich Leonard of the US Bankruptcy Court in North Carolina. He supports legislation that would give judges like him the power to force lenders to lower interest rates and to cram down the amount the borrower owes to reflect the current value of the house. He says that would help people who could afford their homes if they had better loan terms. He says it wouldn't help the people who just bought a house way beyond their means.</s>RICH LEONARD: That's why I think this is such a good proposal, because I think it sorts out, very neatly, the first category from the second.</s>CHRIS ARNOLD: Christ Arnold, NPR News.
On Capitol Hill, Democrats are supporting a bill that would let judges block home foreclosures. The measure would allow bankruptcy judges to alter home loans. Industry insiders say that would cause more harm than good, but economists disagree.