Just as the housing market is showing definite signs that it is stabilizing after a lengthy drop in housing prices, the House of Representatives is about to vote on proposal that would destabilize it once again while also raising the cost of mortgages for future home buyers. The proposal – to be offered by Rep. John Conyers (D-MI) as an amendment to the financial regulation bill now before the House -would allow bankruptcy judges to reduce the principal owed on a mortgage, a practice often referred to as a “cramdown.” …
“Helping Families Save Their Homes Act”? Or Neighborhood Destabilization Act: Allows bankruptcy judges to reduce the principal owed on a mortgage, a practice often referred to as a “cramdown.” Judges would be able to reduce interest rates or lengthen the term of the mortgage. H.R. 1106: It actually achieves opposite results by putting millions of homeowners or potential buyers at greater risk of an unstable credit and housing market and creating high interest rates in the future. Temporary? No. Weak? Yes: The simple rule on Capitol Hill when a bill …
