Posted on 09/12/2009 10:50:00 AM PDT by Libloather
Frank Considers Cramdown Law
Rep. Barney Frank, D-Mass., said slow progress in assisting troubled homeowners could lead to a new push to change bankruptcy laws.
By United Press International
September 10, 2009
WASHINGTON, Sept. 10 (UPI) -- Influential congressman Barney Frank, D-Mass., said slow progress in assisting troubled homeowners could lead to a new push to change bankruptcy laws.
Frank, chairman of the House Committee on Financial Services, said Congress should revisit the issue of allowing bankruptcy judges to modify mortgages if the banking industry does not increase the pace of its help to homeowners, The Washington Post reported Thursday.
The federal Making Home Affordable program, relying on industry cooperation, has lowered payments for 360,165 homeowners since March, the Treasury reported. Its goal was to help 500,000 homeowners by Nov. 1.
**SNIP**
An effort to provide bankruptcy judges with the power to modify home loans -- a practice called "cramdown" -- failed earlier this year, passing narrowly in the House, but failing in the U.S. Senate, the Post said.
The possibility of allowing judges permission to modify loans has met with opposition from lenders.
A cramdown provision would "seriously prolong our housing recovery by decreasing mortgage credit," said Rep. Spencer Bachus, R-Ala.
(Excerpt) Read more at financetech.com ...
Certain words involving Barney Fag shouldn’t be used in the same sentence, especially headlines- cramdown, stuff, swallow, pack, etc.....
Do they really want to post Barney Frank and Cram Down in the very same headline?
If you need anything crammed down or jammed/shoved up, Barney’s your man!
More stimulus, MORE of the same, good ole Barney. He won´t let us down, until we ALL go down.
go down. Ha!
When Barney starts talking about cramming anything I start to worry. Yes, that’s a gay reference.
Doesn’t Barney have someone else he could be doing? He needs to go away. It’s going to take decades for us to clean up the mess he has already made.
Oh no she didn’t!
A Cram Down law would raise the bar and the cost of all other home mortgages,,it would backfire. Banks would start asking for higher down payments or lower appraisals. Plus they will charge higher rates and try to get more variable mortgages.
They are a bit paniced because the residential realestate bomb still has a few more bomblets left to go off.
And if anyone know about cramming things down the throat, it would be Barney Frank.
Cant believe it took so long.
They did save the new "push" for the first line.
"Barney Frank Leads New Push for Cramdown" would have been just too graphic.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), was one of the worst, most destructive, and downright evil pieces of legislation ever visited on our nation.
It’s primary function was to protect credit card companies, based in very heavy lobbying by those companies, against people deeply in debt, to avoid their having the ability to get structured relief from that debt in bankruptcy court. Whereas before, if a judge ruled that a family was impoverished, often by catastrophic medical bills, the judge might direct relief from a portion of those debts, and an orderly reimbursement of the rest.
What the credit card companies wanted was perpetual and growing indebtedness, so that people could never escape the ever growing debt, and its interest, until they died.
But the even more insidious part of BAPCPA, was how it affected corporate bankruptcy. Before, when a corporation went into Chapter 7 bankruptcy, its assets would be divided among its creditors for goods and services.
With BAPCPA, now leverage derivatives corporations, who are responsible for much of our current economic catastrophe, get first call for all corporate assets, even *before* a judge can place controls on those assets. Thus, any company that goes bankrupt gets utterly looted, and sticks its creditors with great losses.
Doing so can cause a domino effect among businesses. One goes bankrupt, and the others cannot recover their credit, which drives them into bankruptcy as well.
This is why nobody will loan anybody money right now. Nobody will extend credit, because they could lose 100% of that loan, if whoever they give it to goes bankrupt. This also means that corporations have to hoard their money, and build up liquidity, just to keep operating, because nobody will loan them money to operate.
And don’t blame the Democrats for this monstrosity. The Republican leadership, especially Tom DeLay and Chuck Grassley, tried to push this through for five years before they finally won in 2005.
Barney Frank is another reason masses of people are marching on Washington today. He is a filthy, corrupt congressman who is responsible for part of the Fanny Mae & Freddie Mac meltdown...a private sand box for ‘ol Barney and pals. He also pitches a fit anytime a conservative tries correct wrongs made by this man. Barny Frank is one of the most problematic people in congress, a pimp for the Progressives.
Do they really want to post Barney Frank and Cram Down in the very same headline?
They did save the new “push” for the first line.
“Barney Frank Leads New Push for Cramdown” would have been just too graphic.
Well, the package is going to be hard to swallow if it includes a cram down, but Bawney is the man to do the job, because Obama won’t want it blown...oh, brother, this is too much...
Somebody needs to ask Bawney Fwank if gential warts of the anus and throat are covered by Obomma Care!
Must...not...make...obvious...joke...
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