Cramdown is Coming!
Cramdown provisions – allowing bankruptcy courts to adjust the amount owed by homeowners – is coming to the House floor this week.
This is a great idea – not just because it has the potential to keep a lot of people in their homes, but because it’s the first major reversal of the anti-consumer practices of the last two decades in bankruptcy and banking regulation.
It will also be important as a means of evaluating the reliability of our new Democratic Congress – this is the one item that the lenders that kicked off our current crisis don’t want to see passed. It’ll be interesting to see if the “New Democrats” caucus has the stones to try and stop it.