Items of Interest:
Mortgage 'Cramdown' Coming
The Housing Time Bomb:
Taxpayer "cramdown" -- Boom! Boom! Boom! Boom! If you are wondering what the noise is it's my forehead slamming against my desk. Ughhhhh.....Welcome to the mortgage "cramdown"!
Sickening isn't it? The banks vehemently opposed this when it was brought up last year. why wouldn't they? If a BK judge does a "cramdown", guess who gets crammed? The banks of course. The fact that both Citi and the NAR agreed to this tells you how bad the situation is in housing.
This whole thing smells like a big pile of dog doo. Why on earth would any bank accept these terms? This is what happens when you allow Uncle Sam to put a collar around your throat. When you take $120 billion from the taxpayer via the government I guess you need to listen when they threaten you with your life! ...
Bankruptcy Cramdown Mortgage Loan Modification? Key Banks Approve Possible Legislation
Mortgage Cram Downs, Foreclosures, Stimulus Package… more -- Finally, it seems someone in Washington has opened their eyes to the reality that the best way, by far, to stem the tsunami of mortgage foreclosures is to pass legislation that allows bankruptcy courts / judges to require mortgage lenders to lower the balance on mortgages (cram down) ...
Renae Merle / Washington Post:
Citigroup Reaches Deal With Lawmakers on Home Loans — Senate leaders won the support of Citigroup, one of the nation's largest banks, for legislation allowing bankruptcy judges to modify the terms of troubled mortgages. — It was a surprising turnaround from a financial industry leader...
Discussion:Alan Zibel / Yahoo! Finance:
Hilzoy / Washington Monthly Countervailing Powers
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