Cram Down Legislation Update- Foreclosure Help Near?
It’s muddy work to keep up with a bill as it winds through legislation.
But it’s worth the slog when it’s as important as the Cram Down Mortgage Legislation.
To recap: Sen. Dick Durbin (D-IL) introduced a bill that would give bankruptcy judges the power to change the terms of your mortgage. A judge could lower your interest rate or even decrease the principal you owe. If passed, this bill could help thousands, maybe even millions, of people facing foreclosure stay in their homes.
If you are struggling to make your mortgage payments this law could be a revelation. It address two majors causes of the recent foreclosure crisis: Skyrocketing interest rates due to adjustable rate mortgages and declining homes values.
However, most banks and credit unions oppose the new law. Legislative magazine Roll Call reports that the groups have been “dragging their feet” on working on a new compromise.
But today Roll Call reports that Sen. Durbin continues to push for a compromise that will work, and an announcement on a breakthrough could come as early as tonight.
Citigroup already agreed to new terms, but Wells Fargo, Bank of America and the Morgage Bankers Association continue to oppose the law.
In the latest round of talks, other banking items have been added to help the banks, including reduced FDIC fees.
We’ll keep you posted as any news on this law breaks.
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