The legislation would reduce mandatory minimums for certain drug offenses and largely ban solitary confinement for juveniles.
Lenders have begun to increase the number of loan default notices to homeowners even as sales of re-possessed homes slow, signaling that banks are moving more aggressively again to re-possess homes from owners who are behind in payments.
Foreclosure activity had been dampened by charges of faulty practices in the lending industry resulting in improper and illegal foreclosures.
This increase in foreclosures comes as judges in many states remain skeptical about the process and while banks remain in talks with state attorneys general and the federal government about a settlement over wrongful foreclosures.
Reporter Paul Kiel has been investigating how poor procedures on the part of lenders remain unchanged, and why every Obama Administration program to help troubled homeowners has failed.
Kiel says “people have the idea that these are the homeowners who were borrowing in 2006 to benefit from the market, but in fact, this new round of foreclosures is hitting people who have lost their jobs in the last two years.”