04 August 2010

Fed Research Backs Home Mortgage Cramdowns

A research report from the Fed looking at the effects of allowing cramdowns (i.e. reductions of mortgage amounts to the value of the collateral in bankruptcy) in the agricultural area shows that they would have a positive effect if allowed in an ordinary bankruptcy.

A difference of opinion on whether cramdowns of home mortgages should be allowed in bankruptcy (Romanoff supports them, Bennet opposes them) is a key different in the Democratic race for the nomination to the United States Senate race in Colorado.

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