Cramdown

The Hill reports that the House of Representatives has delayed a vote on legislation that would allow bankruptcy judges to modify mortgages on a borrower's home. It seems that lawmakers are feeling the pressure from mortgage lenders to wait and see how voluntary loan modifications work before amending the bankruptcy code. My thoughts are that this change is bound to happen eventually, and will be able to prevent more foreclosures the sooner that it is implemented.

I'm not sure what the latest news is on a proposed amendment by Illinois Representative Biggert that would limit access to the bankruptcy courts for immigrants other than citizens and green card holders. There is a brief description of the amendment on the Fair Immigration Reform Movement blog. It doesn't seem to be getting much press coverage- hopefully this means that its not being taken seriously by other lawmakers.