|
'Cramdown' Amendment Fails in Senate
An amendment to a broader housing and finance bill to allow judges to modify the terms of mortgages on a primary residence failed last week in the Senate.
The "cramdown" provision was defeated by a vote of 51 to 45.
On mortgages on principal residences issued prior to Jan. 1, 2009 and with an outstanding value of less than $729,750, the amendment would have allowed judges to change the interest rate, extend the term up to 40 years, and, if the home value had declined, to reduce the mortgage to the current fair market value.
Last Thursday's vote failed to secure even majority support, much less the 60 votes needed to pass it, and the Senate action likely brings to a close efforts to make this reform to the bankruptcy code.
For more information, e-mail J.P. Delmore at NAHB, or call him at 800-368-5242 x8412.
|
