Senate rejects “cram down” provision

The Senate today rejected a provision allowing bankruptcy judges the authority to modify (“cram down”) mortgages of troubled homeowners. The provision garned only 45 votes, with all Republican Senators voting against it plus 12 Democrats. The banking industry has much greater clout in the Senate compared to the House where a simiar provision passed. It would appear this Obama supported measure is now dead.

Filed under article topic: The Fed & Housing policy
Comments Off on Senate rejects “cram down” provision

Comments are closed.