Industry News

Senate won’t hear bankruptcy cramdown bill

Democrats appear to be far short of veto override
Published on Feb 29, 2008

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by CareyBot

The Senate voted Thursday against holding a vote on a bill that included a proposal to allow bankruptcy judges to modify the mortgages of troubled borrowers to help them avoid foreclosure.

That aspect of the bill was strongly opposed by the lending industry, which maintained that it would undermine investor confidence in secondary markets where mortgages are bought and sold, resulting in higher interest rates and larger down-payment requirements for borrowers.

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