Senate Kills Mortgage ‘Cramdown’ Amendment

Law360, New York (April 30, 2009, 12:00 AM EDT) -- The U.S. Senate voted Thursday to block an amendment to a housing bill that would have allowed bankruptcy judges to modify mortgage terms on homes nearing foreclosure.

The Senate shot down the proposal in a 45-51 vote, killing the measure that would have authorized judges to “cramdown” mortgages in bankruptcy proceedings by lowering interest rates and overall mortgage amounts for homeowners facing foreclosure.

Sen. John Thune, R-S.D., said the Senate had acted correctly in voting against the measure, which he believes would cause a spike in...
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