Bankruptcy cram downs rolled into foreclosure relief bill

Senate Democrats are attempting to push through a controversial plan to allow bankruptcy judges to modify the terms of troubled borrowers' mortgages as part of a larger package of foreclosure prevention programs.

Allowing judges to "cram down" loan modifications over the objections of lenders could raise interest rates on mortgage loans by 1.5 percent or more, industry groups fighting the proposed changes to the bankruptcy code say.

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