By Silla Brush - 07/29/09 05:18 PM EDT
Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, said on Wednesday that if the financial industry does not make strides in reducing the number of foreclosures, he would consider pushing for the bankruptcy bill.
The industry met with Obama administration officials on Tuesday to discuss ways to improve efforts to reduce the foreclosure rate that continues to dog the housing market. They aim to produce 500,000 loan modifications by November.
"People in the servicing industry and in the broader financial industry must understand that if this last effort to produce significant modifications fails, the argument for reviving the bankruptcy option will be extremely strong, and I think there is a substantial chance that the outcome will be different," Frank said in a statement.
Frank argued that lawmakers have "provided every legislative tool" for the industry to help ease the foreclosure problem.
The Obama administration's housing plan aims to help modify or refinance up to 9 million mortgages.