As Mike pointed out today, the slow pace of loan modification progress has prompted some lawmakers to once again call for mortgage cramdown legislation that would allow bankruptcy judges to modify loans and keep borrowers in their homes.
But the Obama administration is signaling clearly that while it may be open to some new tactics, cramdown is not one of them.
Assistant Treasury Secretary Michael Barr told reporters on Wednesday that “Bankruptcy reform is an additional tool, but it’s not the focus of our efforts to keep people in their homes,” The Wall Street Journal reported. In plain English, that basically means the administration isn’t going to support any renewed efforts to get a cramdown bill passed.
Read more from the Washington Independent
