A bill which proponents say would give struggling homeowners more clout to renegotiate their mortgages and stay in their homes by having the help of an attorney was dealt a setback Wednesday.

The Utah Senate Business and Labor Committee voted 4-1 to put HB93 on hold. It would exempt any attorney who helps clients get mortgage-loan modifications from having to be licensed by the Division of Real Estate.

Currently, only attorneys who are "principally engaged" in loan modifications receive the exemption.

The bill's sponsor, Rep. LaVar Christensen, R-Draper, testified before the committee that many other attorneys are often leery of taking on such cases for fear of running afoul of state regulators.

Christensen, who is an attorney and real estate developer, said that leaves many homeowners without the clout of an attorney to negotiate affordable terms with often large and powerful banks and other mortgage-holders.

But the bill's most vocal opponent, Sen. Stephen Urquhart, R-St. George, who is also an attorney, said, "This is just trying to carve out something where the lawyer is someone special," as compared with mortgage and real estate professionals.

"I don't get why we're doing this," Urquhart said. "Expertise on mortgages … doesn't reside within the bar."

Speaking in favor of the bill was Jeremy Roberts, who does marketing for a mortgage brokerage. He said a recent Federal Trade Commission ruling prohibiting loan-modification companies from charging upfront fees, will force many out of business. That will make it even harder for submerged homeowners to get help, he said.

The FTC's action came after complaints throughout the country that many loan-modification companies are scamming distressed homeowners.

After the hearing, Deanna Sabey, director of the Division of Real Estate, said her office is neutral on the issue.

"It doesn't matter to us, as long as the bad guys get caught."