Senate Votes Against Cramdown

Posted by Orb Staff on May 01, 2009 No Comments
Categories : Mortgage Servicing

S. Senate has voted down the hotly contested bankruptcy cramdown amendment by a 45-51 vote. Despite having the support of the Obama administration, the provision fell short of the 60 votes needed to break a threatened filibuster. Cramdown sponsor Sen. Richard Durbin, D-Ill., and his staff had been trying to secure support from the banking industry, holding meetings with major banks like JPMorgan Chase and Bank of America, but several of the largest trade groups, including the Mortgage Bankers Association and the American Bankers Association, have campaigned against the cramdown provision. In a statement on his Web site, Durbin expressed disappointment, but vowed to continue bringing the issue to the Senate floor. "When I first proposed this legislation two years ago, nearly 2 million homeowners were at risk of losing their homes," he wrote. "Today, that number has skyrocketed to over 8 million homes, with nearly one in six mortgages in America on the verge of foreclosure. We've given the bankers who got us into this crisis every opportunity to responsibly address this crisis, and they have failed. I'll keep working to give homeowners every legal means to save their homes." SOURCE: Office of Sen. Richard

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