Mortgage Cram-Downs Revisited
Posted by Larry Doyle on December 11, 2009 2:03 PM |
Having broached the topic of mortgage cram-downs this morning, Bloomberg reports that an amendment adding this capability to pending legislation was voted down today. Mortgage ‘Cram-Down’ Bankruptcy Amendment Fails in U.S. House:
Republican lawmakers defeated a mortgage “cram-down” amendment that would have given federal judges the power to lengthen mortgage terms, cut interest rates and reduce loan balances for homeowners in bankruptcy court.
The U.S. House of Representatives voted 241-188 today, stripping the amendment from a broader package of proposed laws to rein in excess on Wall Street. The cram-down provision was identical to legislation that passed the House in March and then failed in the Senate amid opposition from the banking industry.
This vote against mortgage cram-downs is the second time it has been struck down. As the dynamics within the mortgage crisis linger well into 2010, I fully expect this proposed piece of legislation will be back up in front of Congress again.