Moderate Dems Force Delay on Bankruptcy Vote
Nancy won’t get a vote on her mortgage cramdown bill until next week:
The House delayed a vote on legislation to allow bankruptcy judges to modify the mortgages of troubled homeowners after the measure faced unexpected opposition from some Democrats.
Under the provision, a bankruptcy judge would be able to cut the principal on a homeowner’s mortgage, lower the interest rate and extend the terms, provisions known as “cramdowns.”
The measure is fiercely opposed by Republicans and the financial services industry. They complain that it would drive up their losses and force mortgage rate increases. But the latest questions came from moderate Democrats who say that modifications should be negotiated between lenders and borrowers rather than imposed in bankruptcy court, congressional aides said.