Another Year Delay for Cramdown?
That’s what Sen. Richard Durbin (D-Ill.), who sponsored the bankruptcy reform bill that was slaughtered in the Senate Thursday, is saying. From The Hill: “I
Jul 31, 20205.7K Shares815.8K Views
That’s what Sen. Richard Durbin (D-Ill.), who sponsored the bankruptcy reform billthat was slaughtered in the SenateThursday, is saying. From The Hill:
“„“I don’t know what the next step will be,” said Durbin before the vote. “It’ll surely be the conference committee and hopefully the House can keep some aspect of bankruptcy reform in this. If we fail to then, we’ll wait another year and face a worse crisis and hope that the banks won’t have as much clout.”
That would spell trouble for millions of homeowners. Indeed, foreclosure ratesare on the rise, and the only systems in place for modifying loans to keep borrowers in their homes rely on the voluntary compliance of the same financial institutions that are largely responsible for the housing crisis to begin with. Supporters of the bankruptcy reform bill — which would allow bankruptcy judges to reduce mortgage payments — say the threat of bankruptcy would nudge mortgage lenders and servicers to modify more loans than they might alter otherwise. Some estimates say the bill would prevent 1.7 million foreclosures nationwide.
Michael Calhoun, president of the Center for Responsible Lending, issued a statement after the Senate vote warning of the consequences of congressional inaction:
“”The mortgage crisis continues to worsen, and the need for this legislation will only grow,” he said. “Unfortunately, millions of homeowners and all Americans waiting for economic recovery will pay dearly for this delay.”
Camilo Wood
Reviewer
Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing.
Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers.
Camilo's experience includes working in roles related to financial reporting, analysis, and commentary, allowing him to provide readers with accurate and trustworthy information. His dedication to journalistic integrity and commitment to delivering high-quality content make him a trusted voice in the fields of finance and journalism.
Latest Articles
Popular Articles