The "Cramdown" Mortgage Bill

Discussing the serious ramifications of the House "Cramdown" mortgage bill. This bill is the vehicle to pass bankruptcy cramdown which will allow bankruptcy judges to modify the terms of residential mortgages. In turn, this will increase interest rates for all homebuyers as lenders increase rates to price for this risk.

Category:

News & Politics

Tags:

• Michele Bachmann
• repmichelebachmann
• cramdown
• mortgages
• Congress

[AlanCom1]

She is just amazing.

Good luck congresswoman!!! We need defenders of freedom amongst the crooks in Washington!

[itscrucial]

LIARS LIARS LIARS!!! The numbers are updated and the truth is starting to come out. They promissed faster modifications. This scam the mortgage lenders are pulling will soon make headlines. Just wait and see, along with the calapse in the industrial lending, those foreclosures have not yet posted either.. keep a close eye...

[itscrucial]

Remember people in part why AIG was failing. Mortgage companies have insurance on 95% of there portfolios. Example. Joe buys home for 600k in 2004. Its now 2008 he gets laid off, later finds another job with about 40% cut in pay. He can no longer afford his 600k home , is facing foreclosure. The value is now 300k, the bank will not modify his loan even at $400k. Why? They would rather foreclose because when the insurance kicks in they get there loss back. Bank sells for 300k, insurance pays 300k

[itscrucial]

Pathetic, oh yes overy american is a scam artist! This is rediculous. She makes it sound like everyone is trying to get a free. The truth is this economy has affected many people and their incomes. So even if Joe bought a home for $1.5 mil and he can no longer afford it. Why shouldn't he be able to keep it for fair market value. The would rather foreclose and have someone else buy it at the fair market value. The worst Republican liar yet next to Bush!

[tprice11murrieta]

Hey you are ridiculous! Ivicerrate this! That's why it's called Bankruptcy protection...cram down your yacht and I'll be living on the streets

[jsb94510]

Way to be a shill for the banking industry. If cram downs would really raise loan costs or cut availability, why has that not happened with other home loans that are already subject to cram downs? Professor Adam Levitin from Georgetown's Law Center found that loan pricing and terms are identical between owner occupied residential loans (no cram down), second home loans (cram down), and 2 to 4 unit home loans with 1 owner occupied unit (cram down). Stop lying for the banks!

[LetUsSeeHere]

So, someone who bought $300K house in 2005 should not be able to reduce their mortgage to the fair market value of $200K and stay in their house? Instead, home should go into foreclosure, so that a bank can sell it for $180K to someone else?How does it help either the homeowner or the bank?

[dareeair]

It's a ridiculous jump to claim lending will stop with the ability for loans to change in bankruptcy court. It's obvious Rep. Bachmann has no clue how the mortgage industry works.

[zeecee1]

It's got be difficult for the banks to even keep track of everything the gov't is throwing at them, on top of running their own company - with all the new forms, new regulations, etc., mistakes are bound to be made and rates will end up being unfairly adjusted (on top of how unfair it is, anyway!) and that's going to hurt everyone in the long run.

[Auggie56]

This purley is being done to break American into a "two and one third world." See you all out there with shovel in hand, digging ditches.