U.S. Senate rejects easing mortgages in bankruptcy
WASHINGTON (Reuters) – The U.S. Senate on Thursday rejected an amendment that would have given bankruptcy judges the power to ease a homeowner’s monthly payments and prevent foreclosure.
Supporters of what was known as the ‘cramdown’ provision argued that it would serve as a useful tool to help repair the housing market and keep millions of troubled borrowers in their homes.
Opponents of the plan have said its arbitrary rules would scare investors away from the housing market and prolong the current slump.
