WASHINGTON - U.S. Senator Sam Brownback today commented on the cram down amendment to the Housing Bill currently being debated in the Senate. The cram down amendment last night was voted down, with a vote of 45-51.
"I am pleased the cram down amendment failed to pass the Senate," said Brownback. "While I certainly sympathize with homeowners who are facing foreclosure, allowing bankruptcy judges to cram down on interest rates or principal for delinquencies is not the right approach to solving this problem. This approach would result in higher interest rates and fees across the housing industry. Allowing judges to cram down on mortgages is a bad precedent to set, and my colleagues were wise to reject the amendment."
The cram down amendment to the Housing Bill, offered by Senate Dick Durbin (D-IL) would have amended current law to allow cram down for primary residences under certain circumstances.