More Loan Modifications on the Way
By: Myles, January 5th, 2009
As we suggested in this Blog on November 7, 2008, democrats are once again planning to reintroduce legislation that would allow bankruptcy judges to modify the terms of troubled borrowers’ loans — a move that industry opponents say will lead to higher interest rates and down payments for all borrowers.
Rep. Brad Miller, D-N.C., said he plans to introduce a bill today allowing bankruptcy “cramdowns” of mortgage loan principal, the Wall Street Journal reported. Sen. Richard Durbin, D-Ill., plans to sponsor similar legislation in the Senate, the paper said.
Miller said it’s clear that voluntary efforts by lenders to modify the loans of troubled borrowers are “just not working” to prevent foreclosures.
Let the games begin in 2009 ….. Stay tuned.
Tags: bankruptcy, Loan Modificaitons
Entries