Bankruptcy Forced Loan Modifications Gets Booted Off Stimulus Bill
President Obama kicked Senator Durbin’s bankruptcy bill with it’s “cramdown” forced loan modification provisions to help foreclosure victims, off his economic stimulus package. Friday, in a meeting the two decided Durbin’s bill could derail the passage of the more important recovery bill.
Cramdown Bill Ousted
The part of the bankruptcy bill President Obama was afraid of was the provision giving bankruptcy judges the power to “cramdown” the rate in a forced loan modification which has received a lot of cricism lately.
Many special interest groups are weighing in on this fight. The largest lobbyists opposing this new bankruptcy bill is the US Chamber of Commerce. We also know both the Mortgage Bankers Association and the Mortgage Brokers lobby oppose the bill as well. All told, over 10 special interests are against giving the bankruptcy court to “re-write” the mortgage terms of defaulting loans.
Senator Dick Durbin said on Friday in an AP story, that even though the bill won’t make it onto the stimulus package, Obama promised “…to attach the proposal to other “must pass” legislation-with the hope that supporters of the overall bill would not vote against it because of the bankruptcy provisions.”
I’ve got news for Durbin, Obama, foreclosure victims, and anyone else who thinks the bankers will let this “cramdown” bill pass…Keep Dreaming.
Well, this another indication, that everything is “business as usual” when this administration is leaving foreclosure victims out in the cold as much as the previous one.
Do we all still think an Obama administration is all that different?
Good Luck!
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Tags: Bankruptcy Bill • Cramdown • Forced Loan Modifications • Senator Dick Durbin
On a calmer front, I wrote to two of the three representatives last night while I was adequately alarmed at the probable derailment of our economies by yet another attempt to derail one of the most helpful forms of legislation put forth in the new Congress.
Personally I feel that Brad Miller should be Speaker of the House instead of the failed speaker who failed to get this measure put forth before the 110th Congress.
Brad Miller pushed forward with legislation which would both help those in Bankruptcy to be free from the anti-modification clause inflicted on homeowners and also authored legislation which would set standards that would detour these types of loans from ever being originated in the future.
I trust him to be one to represent main street over wall street, however I concur that the to the left or to the right package products is all we have to choose from currently.
I believe he authored a lot of laws when at the state level which were consumer protection oriented. The last I checked NC was less affected by the fallout compared to other states because of state level legislation.
I wrote to the clown in Washington about the foolish derailment of the anti-modification removal from the title 11 section 1322(b)(2). hopefully he will not be a blasted imbecile and destroy our nation with his ridiculous ideas. There is nothing in the TARP2 proposal which will help our economy move forward. The TARP2 should be scrapped and this measure should be marked as must pass within a very short time. If it does not pass, we should fire the whole lot in DC for their incompetence.
The last law where this type of legislation was removed from was when Public Law 110_289 was being drafted.
With the mixture of the house and senate being more heavily Democratically influenced, it would simply be efforts of the government to knowingly perpetuate the destruction of world economies and to start a world war where we all may be in danger of nuclear cellular damage, chemical weapon genetic damage and will become a land of mutants as depicted on some of the most poorly produced science fictions out on the market.
I guess I should not be alarmed since it is highly unlikely there will be anything left of mankind to be been remotely close to the beings that evolved over time before the world was set off into a nuclear and chemical wars to end all of humanity as we knew them prior to the coming wars worldwide.
The passage of the TARP is in danger more because of the plan itself. TARP2 probably will not make it out without real financial recovery incentive such as the modification of loans on primary residences.
Do I think the new administration is any different? No, they have the power to pass the TARP2 with this measure included.
In my view, the priority should first be on getting the modification of home mortgages straightened out. Ruining the country further with TARP2 when the first TARP did not go toward its “The economy is burning, we need to rid the toxic assets.”
Hopefully TARP2 goes down to defeat since it has little change of baling out our economy when the primary cause of the economic disaster is not being addressed.
Durbin should tell Obama to go mind his business. Will he sign a bill with BK loan modification if it reached his desk?
If Obama thinks this provision would endanger his TARP2 plan, it sure would not do any better riding on any other legislation.
Round an round and round we go. Down to the bottom where no economy will grow. … Sigh!