Homeowners facing foreclosure could get help if Congress approves a “cram-down” measure, which would give bankruptcy judges the ability to alter mortgage terms. The House of Representatives is gearing up to vote on the amendment, but it’s not likely to be an easy victory by any stretch. —KA
The House Rules Committee on Thursday, which is charged with deciding which provisions can be attached to major legislation under consideration on the House floor, cleared a vote by the full chamber on dozens of provisions including the so-called “cram-down” measure to enable bankruptcy courts to reset mortgage terms.
“It’s going to be contentious,” said House Financial Services Committee Chairman Barney Frank, D-Mass., after being questioned about whether he believes it will pass.