In his July 2 Point of View article Jerry Hartzell called for Congress to pass legislation promoting bankruptcy as a solution to foreclosure, conveniently ignoring the negative consequences of bankruptcy to consumers.

There are reasons why Congress has wisely rejected it twice.

Bankruptcy puts a 10-year black mark on one's credit -- credit that will be needed in the future to purchase automobiles, insurance, homes, even get a job or rent a home. Further, it would increase the cost of mortgages for all future borrowers by at least 1.5 points. For average homeowners in Wake County, this would add $1,900 a year to their mortgage.

And who stands to gain? Bankruptcy attorneys get paid whether the bankruptcy succeeds or fails (and two- thirds do fail). Advocates claim 600,000 people could file for bankruptcy under this proposal. At an average of $3,000 per filing, that's a $1.8 billion windfall for bankruptcy attorneys.

Conversely, HOPE NOW and other industry-led responses have helped 1.7 million homeowners with loan workouts since July 2007. In North Carolina alone, these efforts have helped almost 38,000.

There is no quick-fix solution to the housing crisis, but a radical solution such as bankruptcy will only exacerbate the problem.

David G. Kittle

Chairman-Elect

Mortgage Bankers Association

Washington, D.C.