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February 29, 2008
Senate Won't Hear Bankruptcy Cramdown Bill
After President Bush vowed to shoot down a bankruptcy reform bill that, among other provisions, would give judges the power to amend the terms of filers' home loans, the Senate voted not to vote on the measure. The MBA, which had supported many aspects of the bill but was strongly opposed to the modification language, hailed the move as a "major victory." The lending industry had warned that giving bankruptcy judges the authority to revise loan terms would hurt investor confidence in the secondary mortgage market, leading to higher borrowing costs for home buyers.
Posted by S. Germain at February 29, 2008 08:24 AM