Thursday, January 08, 2009

Citi Supports Mortgage Cram-Downs

by Calculated Risk on 1/08/2009 03:51:00 PM

From CNBC: Citi Supports Plan to Adjust Mortgages in Bankruptcy

Citigroup has agreed to a plan that would let bankruptcy judges alter mortgages in an effort to prevent more housing foreclosures.

Until now, the banking industry has been ardently opposed to the proposal, which key Democratic lawmakers aim to attach to President-elect Barack Obama's economic stimulus legislation.
...
The National Association of Home Builders has dropped its opposition to the plan and the National Association of Realtors is debating whether to end its opposition.
Cram-downs makes sense. For a discussion of the cram-down issue, see Tanta's: Just Say Yes To Cram Downs Oct, 2007