[ConorMacNessa]

What bank is going to make mortgage loans if the terms are subject to arbitrary change by some bankruptcy judge?

Lamh Foistenach Abu!

[DonaldC]

Maybe this will drive banks to be more flexible in tougher times. While lower down on the list of causes to this, banks could have stemmed the depth of this mess by being more willing to work with borrowers rather than against them.

[Old North State]

You are right. A mortgage is a contract, if a judge can arbitrarily change the terms of a contract to the benefit of one party then all contracts become suspect. Ask anyone who has tried to do business in a third world country where contracts cannot be enforced. We are either going to be a nation of law or we are not. The function of a court is to administer the law as it is written not to promote social policy or ‘help’ certain groups of people.