US housing bankruptcy measure back next year

WASHINGTON, Nov 19 (Reuters) - A bill designed to allow bankruptcy judges to change mortgage terms to help people with financial woes stay in their homes is "highly unlikely" to pass this term but will be revived next year, its sponsor said.

Asked if the measure, which mortgage bankers staunchly oppose, would pass this term, Sen. Dick Durbin, a Democrat from Illinois, said it was highly unlikely. "This session may be over in 48 hours."

But he vowed to reintroduce it in the next Congress "as quickly as we can. This is an issue that has to be moved forward."

The bill was introduced in what is expected to be an abbreviated lame-duck session of Congress, called to address a possible auto industry bailout and economic stimulus. A new Congress, with a greater number of Democrats, begins work in January.

The Senate voted against a similar mortgage bankruptcy proposal in April. That bill had been co-sponsored by then-senator, and now president-elect, Barack Obama.

Durbin's bill would also bar any bank participating in the government's financial bailout program from increasing its dividend while the government owns preferred shares in the bank.

It would also require any participating bank to cut next year's dividend by an amount equal to the pay of the top five executives in excess of $500,000 each. (Reporting by Diane Bartz; Editing by Tim Dobbyn)