Lawmakers Hail Mortgage Deal With Citigroup

Law360, New York (January 8, 2009, 12:00 AM EST) -- Democratic lawmakers say they have reached an agreement with financial giant Citigroup Inc. over proposed legislation to change the Bankruptcy Code to allow courts to alter the terms of mortgages, calling it a “breakthrough” deal that will help reduce foreclosures.

Sen. Richard Durbin, D-Ill., said during a news conference Thursday that Citigroup — one of the nation's largest mortgage lenders — had dropped its previous opposition and had agreed not to challenge the bill, which will give bankruptcy courts the authority to set new repayment terms...
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