While the Democrats had a bill in mind to help those facing bankruptcy by allowing judges to reduce interest rates as well as the amounts due on mortgages, the White House has promised to veto said bill. The bill would provide also provide $4 billion to help communities buy and rehab foreclosed homes, as well as better already issued subprime mortgage loans so that borrowers would not be swamped by payment increases. However, the White House says that the $4 billion amount is too high and would only help lenders as by allowing the borrowers to re define their loan contracts, would lead lenders to make stricter standards raise interest rates for new borrowers.

The Mortgage Bankers Association is also against the bill, saying it would negatively affect borrowers by making only helping a few and at the same time leading to "higher interest rates and larger down payments to offset the risk"

The Democrats have countered this by saying they would tighten the bill so that it would only apply to subprime borrowers that are able to prove that they are unable to afford their current mortgage rate, and that the bankruptcy judges would reduce the interest rates but also provide a premium to offset lender risk.