October 29, 2007 (LPAC)--Yesterday it was the New York Times lead editorial; today, the Oct. 29 edition of Congressional Quarterly (CQ) drew the conclusion that Congress is doing nothing effective to stop the nationwide crisis of mass home foreclosures, because of a desire not to touch the banking system, which is in a profound credit crisis.

Despite a variety of legislation proposed during the past two months, "According to consumer advocates and industry experts, Congress is considering very little that would help those people who are currently facing the loss of their homes," CQ reports. "Moreover, measures that might assist borrowers who are currently struggling, a change in bankruptcy law principal among them, appear unlikely become law."

Lyndon LaRouche and LaRouchePAC's principles of a Homeowners and Bank Protection Act (HBPA) would, if enacted by Congress now, stop foreclosures cold, nationally, and protect chartered banks suffering major losses in the mortgage meltdown. But despite demands from a hundred state legislators around the country, no Member of Congress has introduced HBPA. Speaker Nancy Pelosi's misleadership has led the Democrats down blind alleys, and Financial Services Committee chief Rep. Barney Frank (D-Mass.) opposes such action.

CQ assesses what they {have} proposed. Federal Housing Administration (FHA) reform, President Bush's idea, requests but "doesn't require lenders to work out new arrangements." Frank's proposed reform of Fannie Mae and Freddie Mac?: "their Congressional charters would prevent [Fannie and Freddie] from taking on the loans that were riskiest and likeliest to default. Allowing "bankruptcy instead of foreclosure" for borrowers? "The House Judiciary Committee retreated" from this idea under pressure from big banks and lenders who threatened to raise interest rates if homeowners were allowed to go bankrupt and lower their mortgage payments.

Rep. Barney Frank says Congress has to focus on lender-by-lender "workouts," reports CQ. But, "voluntary" refinancing of mortgages in trouble is happening in a grand total of 1% of the cases nationwide, as Moody's Investors Service just showed.

The only way to stop foreclosures, is to stop them by law, as only LaRouche and LPAC have proposed.