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Mortgage Cramdowns

Some legislators want to rewrite bankruptcy law to help prevent foreclosures. As NBR's Stephanie Dhue explains, the focus is on giving judges the ability to cramdown a loan (modify it whether the creditor wants to or not).



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Related NBR Stories & Links

• 01-12-09: "Commentary" - Rebuilding the Economy One Mortgage at a Time
• 12-22-08: The Foreclosure Crisis Round 2
• 11-27-08: "From Bubble to Trouble: The Financial Crisis of 2008" - The Role of The Mortgage Meltdown
• 11-30-07: The Subprime Bailout Plan May Not Involve Taxpayers

External Links/Articles*

• Center for Responsible Lending (PDF Document)
  The Center for Responsible Lending "is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices." Michael Calhoun, the center's president, is interviewed in Stephanie Dhue's report. This links to a copy of testimony Calhoun gave before the U.S. House Committe on Financial Services on January 13, 2009. The testimony includes a discussion of why Calhoun thinks lawmakers should lift the ban on judicial loan modifications (cramdowns).
• Financial Services Roundtable
  The Fiancial Services Roundtable is an advocate for the financial services industry. The organization's chairman, Scott Talbot, is interviewed in Stephanie Dhue's report. This links to a January 6, 2009 press release issued by the organization. The release is titled, "Roundtable Opposes Mortgage Cram-Down Bills."
• Selected Works of Adam J. Levitin
  Levitin is an Associate Professor of Law at Georgetown University. His focus is on mortgage and bankruptcy law, and he is interviewed in Stephanie Dhue's report. This links to an unpublished paper authored by Levitin and Joshua Goodman of Columbia University. The paper is titled, "Resolving the Foreclosure Crisis: Modification of Mortgages in Bankruptcy."
• U.S. Senator Rick Durbin
  Senator Rick Durbin (D-Illinois) is one of three Democratic legislators that recently introduced bills to reinstate bankruptcy cramdown measures, allowing homeowners to modify mortgage terms in bankruptcy court. This links to a January 6, 2009 press release titled, "Durbin Introduces Bill to Stem Record Foreclosures."

*Clicking these external links will take you off the NBR web site on PBS.org. NBR has no affiliation with these sites.