Citi Reaches Deal With Lawmakers on Home Loans

Democratic lawmakers have reached a deal with the banking giant Citigroup on a plan to let bankruptcy judges alter home loans in an effort to prevent foreclosures and urged other lenders to follow suit. The so-called “cramdown” proposal has been backed by Democrats in the last year as a potential solution to the foreclosure crisis. Consumer advocates and Democrats say it would prod the lending industry to be more aggressive about modifying loans because of the looming threat of having a bankruptcy judge involved. But the lending industry has battled fiercely against the idea, arguing it would force lenders to raise mortgage rates because they would have to charge more for loans that could be altered later by a judge.

Click here to enter the Tampa Realtors MLS (updated daily)
Register to receive an email every morning of today's new listings
Visit my website or contact me by email