Industry NewsMortgage

House OKs ‘cram-down’ compromise

Bill would let bankruptcy judges modify mortgages
Published on Mar 5, 2009

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by CareyBot

In a compromise intended to appease lenders, the House of Representatives today passed legislation that will allow bankruptcy judges to rewrite the terms or troubled borrower's mortgages -- but only if they have first tried to work with their loan servicer to obtain a loan modification or other alternative to foreclosure.