Nobelman v. American Savings Bank, 508 U.S. 324, 2 (1993)

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Cite as: 508 U. S. 324 (1993)

Opinion of the Court

"a claim secured only by a [homestead lien]" as referring to the lienholder's entire claim, including both its secured and unsecured components, since it would be impossible to reduce petitioners' outstanding mortgage principal to $23,500 without modifying the mortgagee's contractual rights as to interest rates, monthly payment amounts, or repayment terms. Pp. 327-332.

968 F. 2d 483, affirmed.

Thomas, J., delivered the opinion for a unanimous Court. Stevens, J., filed a concurring opinion, post, p. 332.

Philip I. Palmer, Jr., argued the cause for petitioners. With him on the brief was Rosemary J. Zyne.

Michael J. Schroeder argued the cause for respondents and filed a brief for respondent American Savings Bank, F. A. Molly W. Bartholow and Charles L. Kennon III filed a brief for respondent Standing Chapter 13 Trustee.*

Justice Thomas delivered the opinion of the Court.

This case focuses on the interplay between two provisions of the Bankruptcy Code. The question is whether § 1322(b)(2) prohibits a Chapter 13 debtor from relying on § 506(a) to reduce an undersecured homestead mortgage to

*Briefs of amici curiae urging reversal were filed for the Consumer Education and Protective Association et al. by Henry J. Sommer, Gary Klein, Daniel L. Haller, and Lawrence Young; and for Harold J. Barkley, Jr., pro se.

Briefs of amici curiae urging affirmance were filed for the State of Alaska by Charles E. Cole, Attorney General, Mary Ellen Beardsley, Assistant Attorney General, and Richard Ullstrom; for the American Bankers Association et al. by John J. Gill, Michael F. Crotty, Lynn A. Pringle, Alvin C. Harrell, Laura N. Pringle, and James R. Martin, Jr.; for the Federal Home Loan Mortgage Corp. by Dean S. Cooper and John C. Mor-land; for the Federal National Mortgage Association by William J. Perlstein and Sharon A. Pocock; for the Mortgage Bankers Association of America by William E. Cumberland and Roger M. Whelan; for the National Association of Realtors et al. by William M. Pfeiffer and Laurene K. Janik; and for Nationsbanc Mortgage Corporation by Michael C. Barrett, Mary A. Daffin, and G. Tommy Bastian.

325

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