[quote=bearishgurl][quote=hslinger]It’s for bankruptcies
“The head of the Federal Housing Finance Agency (FHFA), which oversees the mortgage-financing companies, met with 19 Democrats and discussed a proposal that would allow bankruptcy judges to reduce principal amounts on loans.”
House R’s wont go for this anyway.[/quote]
hslinger, in effect, this is giving BK judges the power of “cramdown,” something they have never had.[/quote]
Not true. They did have it. Unquestionably before the late 70s. And after changes to the bankruptcy laws at that time (I’m pretty sure it was during the Carter administration) most bankruptcy courts continued with chapter 13 cramdowns. A supreme court case involving American Savings in the early 90’s ended cramdowns on principle residences. They’re still allowed for investment property.
