House Panel approves bill allowing cramdowns for mortgagesMortgagePress.comHouse of Representatives, HR 200, Helping Families Save Their Homes in Bankruptcy Act of 2009
A U.S. House of Representatives panel has reportedly approved HR
200, the "Helping Families Save Their Homes in Bankruptcy Act of
2009." The bill, among other things, would:
• Allow bankruptcy judges to reduce ("cramdown") the
principal balance for certain mortgages, and
• Require a bankruptcy court to disallow a claim that is
subject to any remedy for damages or rescission due to violations
of, among other laws, the Truth in Lending Act, notwithstanding a
prior entry of a foreclosure judgment.
Thus far, a cramdown provision has not been included in the
omnibus HR 1, "The American Recovery and Reinvestment Act of 2009,"
which the U.S. House of Representatives passed on Jan. 28.
For full text of HR 200, click here.