The Hill: Financial groups push back on ‘cramdown’ mortgage measure

AFR was mentioned in this article in The Hill.  Here is an excerpt:

Financial industry groups are launching a broadside against an amendment to financial overhaul legislation that would empower bankruptcy judges to alter home mortgages.

The industry for years has fought against the policy, which it calls “cramdown”, and argues that the change would hamper the housing market’s ability to recover. Supporters, including a range of consumer advocacy groups, say it is a necessary shift to force mortgage lenders and servicers to rewrite the terms of mortgages and reduce the foreclosure rate.

The House earlier this year passed legislation on the bankruptcy provision, but the Senate fell 15 votes shy.

Consumer advocacy groups and labor unions, including the AFL-CIO, are strongly supporting the bankruptcy measure. Americans for Financial Reform, a group of 200 groups, is planning to send a letter on Wednesday in support of the measure.