LANSING, Mich. (4/1/09)--A Michigan State Senate panel has presented three foreclosure prevention bills that removed a provision that allowed consumers or borrowers trying to rework their mortgage to take their case to court if a lender wasn’t cooperating with loan modification. The provision was controversial and its removal is a positive development for credit unions, according to the Michigan Credit Union League (MCUL) (Michigan Monitor March 30). The reworked versions of House Bills 4453, 4454 and 4455 addressed a concern of the Michigan financial services industry that governmental officials could be left to decide whether a lender has cooperated with loan modification, the league said. “The Senate panel’s decision came down to a party-line, 4-3 vote,” MCUL Executive Vice President Patrick La Pine told the Monitor. “Democrats were strongly opposed to stripping the provision that would allow borrowers to take foreclosure proceedings to court if a lender would not modify the mortgage. “Ultimately, it's good for credit unions and other responsible lenders that this was removed from the language, but hopefully the legislation will continue to move forward so its other provisions can assist Michigan homeowners as soon as possible,” he added. State Sen. Randy Richardville (R-Monroe), who chairs the Senate Banking and Financial Services Committee, described the bills as a “compromise” and said that although the bills remained a “work in progress,” he expects the Senate to act quickly on the package. MCUL said it will continue to update credit unions as the foreclosure package moves through the state legislature.