Key Democratic lawmakers are courting support from the financial services industry, including credit unions, for legislation that would allow bankruptcy judges to modify mortgages.
The provision passed the House last week but has not been scheduled for a Senate vote. The Senate had been expected to take up the bill as soon as this week, but it now could be delayed a few weeks, perhaps until after Easter, some congressional aides said.
Many Republicans continue to oppose the measure. Even though it once appeared the legislation was likely to pass, "I really believe the momentum has slowed," said Sen. Bob Corker (R-Tenn.), a member of the Senate Banking Committee, which has jurisdiction over the legislation.
Under the measure, bankruptcy judges could reduce the principal on a homeowner's mortgage as well as cut the interest rate and extend the terms — provisions known as cramdowns.
Friday, March 13, 2009
Senate Democrats seeking support for mortgage cramdown legislation
From today's Washington Post: