Long-Stalled Proposal To Restructure Mortgages Faces Critical Test

Long-Stalled Proposal To Restructure Mortgages Faces Critical Test

It's cram time for cramdown proponents.

Senate Banking Committee Chairman Chris Dodd (D-Conn.) has given housing advocates two weeks to find a compromise that would win 60 votes for a long-stalled proposal to allow bankruptcy judges to restructure mortgages. Critics of this proposal call it a cramdown because it would force mortgage lenders to reduce principal and interest rates in some bankruptcy cases.

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