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Senate Homeowner Aid Moves Big Step Closer

Citi drops opposition to Senate proposal

By Matt Cantor, Newser Staff

Posted Jan 9, 2009 9:02 AM CST

(Newser) – A Senate plan to help struggling homeowners keep their houses moved closer to fruition yesterday as Citigroup ended its opposition to the bill, the Wall Street Journal reports. The measure would allow so-called “cramdowns,” in which judges in Chapter 13 bankruptcy cases could set lower principal and interest rates, or extend the terms of loans. Citi has changed its stance after receiving $45 billion in government aid in the fall.

“This is the breakthrough we've been waiting for," said Illinois Democrat Dick Durbin. "To have a major financial institution support this legislation will create an incentive for others to come our way.”

A boarded up vacant home is for sale on the near south side of Indianapolis, Wednesday, Oct. 22, 2008. (AP Photo/Michael Conroy)

The Senate plan would offer debtors more power in mortgage renegotiations. (AP Photo/David Zalubowski)

U.S. Sen. Dick Durbin, D-Ill., proposed the bill. (AP Photo/Charles Rex Arbogast)

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Senate Homeowner Aid Moves Big Step Closer

Citi drops opposition to Senate proposal

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More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

Mortgages, Wages Force Many to Delay Retirement

Debt weighing down 60-something Americans: Wall Street Journal

US May Let Millions Refinance at 4%

Proposal could save homeowners $85B annually

Don't Let Bankers 'Off the Hook'

Deals with banks for paltry sums won't fix the crisis: Paul Krugman

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Senate Homeowner Aid Moves Big Step Closer

Citi drops opposition to Senate proposal

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OTHER STORIES ON OUR RADAR

Senate • mortgage • mortgage rates • mortgage debt • Dick Durbin • refinanced mortgages • foreclosures

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

Mortgages, Wages Force Many to Delay Retirement

Debt weighing down 60-something Americans: Wall Street Journal

US May Let Millions Refinance at 4%

Proposal could save homeowners $85B annually

Don't Let Bankers 'Off the Hook'

Deals with banks for paltry sums won't fix the crisis: Paul Krugman

About Us

Site

Newser By Users

Community

Site Maps

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More News

What is Newser?