Tag Archives: Mortgage cram down rejected

Senate rejects mortgage cram downs

The bill, which passed the House by a huge majority, would have given bankruptcy judges the power to reset mortgage rates and principle amounts. The Senate will no doubt be accused of caving in to the banking interests but the argument against was that it would add uncertainty to mortgages and where there’s uncertainty, there’s risk, which means higher interest rates for everyone. Makes sense to me, but we all know I’m a tool of Wall Street.

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