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April 21, 2009

Update on Cramdown Bill in the Senate

The Washington Post article today by Renae Merle can be accessed here.  Lenders are putting up a pretty good fight in the Senate.  Among the concessions demanded is a sunset provision in 2014 when the legislation will end, and a requirement that the debtor accept a loan modification without cramdown if offered.  What's most interesting is who is not negotiating.  "[T]he Mortgage Bankers Association and American Bankers Association, major industry groups, are not part of the current negotiations, and congressional Republicans continue to resist the provision."  "The Independent Community Bankers of America had been observing the negotiations, but walked away last week, said Camden Fine, president of the group. 'Basically we were told by the senators that are involved that we either had to agree in principle to some sort of cramdown provision or we couldn't stay in the room,' Fine said. 'And we could not agree to that because we don't agree in principle.'"  
  

April 21, 2009 in Legislation | Permalink

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Comments

Google online petition S61 and sign it..... sign
for cram down..... Help families stay in their homes..

Posted by: kateb | Apr 21, 2009 6:08:23 PM

As an individual who is stuck ina 12.12 % sub-prime loan with Nationstar lending, I must attempt to convince you to consider an up vote on the cramdown bill. Nationstar lending agreed to a modification on this sub-prime loan at 12.12% down to 9.12%, but then they forced an escrow account on my loan which would saved me a grand total of less than 90.00 a month if I would agree. They were also going to moved the principle of each payment that was modified for only two years to the end of the loan to be compounded. My monthly payments on a $168,400.00 balance on a home now valued at $209,000.00 are now at $1755.22 monthly on a 30 year fixed. If I could negotiate a 5% loan on a 30 year fixed, my payments would be lowered to $969.00 monthly. I need some assistance, I have been professionally out of work for a year and therefore I started cutting grass months ago which will allow me to pay a 5% loan without any problems, I am still paying $1755.22 at the present but my funds are exhausted. Because there is some equity in my home it seems I have no options before me and I have only been late on one payment since the beginning of this loan. Doom is just around the corner if options do not prevail for me and my sons. The passing of a cramdown bill would possibly allow me some leverage with this lending institution, I might possibly be able to enter into a decent interest rate which is not the case at the present. If all else failed a bankruptcy judge could see the facts amd might entertain a court ordered reduction in interest only allowing me and my two sons to not become victims of an unnecessary forclosure. I am a single parent with a son who has a tumor at the stem of the brain which was the reason of entering into this sub-prime loan in the first place. I needed cash out of home for medical and educational expenses for my son. The loan was to have been for 1 year only and reduced pauments were to follow if no payments were missed. No payments were missed or late but Nationstar stated I did not qualify for a lower interest rate, so I was stuck in this sub-prime loan. No I do not qualify for a 5 or 6 percent loan but I still qualify for to pay 12.12% interest rate on this loan? I need help, and this bill would stop this forclorsure which is just around the corner. I am sure there are more like me out there with similar situations. I have witnessed stories simular to mine on CNN, HLN and Fox and MSNBC networks, hopefully someone is listning. There has got to be a middle of the road for those of us who were not irresponsible but lured into an intentional misrepresented loans.

Posted by: Dennis Rose | Apr 22, 2009 6:40:44 AM

I agree! Sign it big babies. The government is buying them off anyway! Modify those stupid PSAs while your at it!

Posted by: Patches | Apr 24, 2009 10:37:26 AM

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