Politico reports that time is ticking for a legislative provision that would allow bankruptcy judges to alter mortgage terms, so-called "cramdowns." If supporters are unable to assemble a filibuster-proof majority in the next few weeks, the cramdown provision will be stripped from the housing bill, Politico reports:
It’s cram time for cramdown proponents.
Senate Banking Committee Chairman Chris Dodd (D-Conn.) has given housing advocates two weeks to find a compromise that would win 60 votes for a long-stalled proposal to allow bankruptcy judges to restructure mortgages. Critics of this proposal call it a cramdown because it would force mortgage lenders to reduce principal and interest rates in some bankruptcy cases.
“So we get back here [after a two-week spring break], we’re either there or we’re not there,” Dodd said. “We have to move along on these things.”
