cramdown

(Newser) - The House has passed a homeowner rescue bill over the strenuous objections of the financial industry that would allow bankruptcy judges to change the terms of mortgages, the Washington Post reports. Judges could cut the principal on mortgages, extend terms and reduce interest rates under terms of the "cramdown"...

(Newser) - Legislation that would allow bankruptcy judges to reduce the principal on mortgages of homes in danger of foreclosure will not come up for its scheduled House vote today because Democratic infighting has broken out, endangering its passage, CQ Politics reports. The “cramdown” provision was a red flag for fiscal...