As The Helping Families Save Their Homes Act awaits a Senate vote, it has become apparent that the cram-down provision of the bill will likely not muster enough support to pass.  The cram-down provision, which gives bankruptcy judges the power to modify principal balance and interest rates of mortgages, has faced intense opposition from the banking industry. 

Last week, Sens. Dick Durbin (D-Ill.), Christopher Dodd (D-Conn.), and Charles Schumer (D-N.Y.) introduced two new bills.  The bills are similar to H.R. 1106 -The Helping Families Save Their Homes Act- passed by the House, however one bill does not contain the judicial mortgage modification language known as the “cram-down” provision.  The provision instead is likely to be voted on as an amendment to the act.  It is predicted that all Senate Republicans and a few Democrats will oppose the cram-down provision.  Sen. Mary Landrieu (D-LA.) is one of the Democrats who oppose the cram-down provision.  Sen. Landrieu opposes the legislation out of concern for the possible affect on local community banks.  A vote on the bill is expected within the next week.