May 14, 2009

Banks: 1; Borrowers: 0 -- Senate Defeats Mortgage Modification Measure

A measure to allow bankruptcy judges to re-write the terms of mortgages on principal residences died in the Senate. This is particularly frustrating in light of the current overwhelming numbers of home foreclosures. Bankruptcy judges are allowed to change the terms of many other types of loans, inluding those on second homes, also known as "cram down". The fact that this measure failed just shows that the banks are still running Capitol Hill. I guess the $56 million dollars the banks spent lobbying Congress really paid off for them. I wonder if any part of that money was from the bailout funds?