The Senate may leave the proposed cramdown legislation behind as it considers other remedies for the housing and mortgage meltdown.
The legislation would allow bankruptcy judges to modify certain home mortgage loans by reducing the principal, the payments, and/or the interest rates. The lending community has fiercely opposed it, and some lawmakers on both sides of the aisle are reconsidering their support of the bill.
Senate Majority Leader Harry Reid has indicated that he is willing to drop the cramdown provisions to focus on other housing measures such as creating new financial regulations and increasing measures to battle mortgage fraud. The Senate will reconvene on April 20, but it is doubtful that the bankruptcy cramdown legislation will be a priority.
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