Posted by CM on October 16, 2009
If the health care debate in Washington has shown us anything, it is that corporations own our politicians. I have spent the past month thinking that this little ole blog of mine won’t amount to anything and why waste my time. To be fair to myself, I still kept reading the papers and watching the news and had not really heard much about mortgage servicers lately. Luckily I picked up a Business Week Magazine this week and found an article about mortgages! (I should also add that I don’t believe that any elected official will do anything about mortgage servicers. Please excuse my bitterness about my foreclosed house!)
Anyway, it seems that Senator Dick Durbin (D-IL) has vowed to attach a “cramdown” amendment to every bill until it gets passed. Cramdown is the Democrats catchy phrase answer to allowing bankruptcy judges to adjust mortgages. They would also be more inclined to reduce principal and interest. Recall from previous posts that reducing principal and interest are the best tools for mortgage modifications in HAMP. Apparently this proposal passed the House and was lost in the Senate on a 45-51 vote1. Undeterred, Durbin has promised to fight on. I suppose he will hang on until a bank lobbyist gives him a big campaign contribution to shut up!
Business Week did not give any specifics about the cramdown legislation and I was not able to find any information about it on Sen. Durbin’s website. Business Week did not provide details regarding the cramdown’s passage in the House; like which bill the proposal was imbedded into.
Obviously letting judges modify mortgages is a good idea. These days, any good idea that has lobbyists fighting over its demise is good for the American people!
Hopefully I can put my foreclosure bitterness aside and keep fighting the good fight. I don’t think we will win but I suppose we can keep trying.
1. Return of the Mortgage Cramdown. Theo Francis. Business Week. 10/19/2009.