Bankruptcy Changes in Mortgage-Market Stabilization Plan

SIFMA and 11 other associations provide comments to the U.S. Congress on bankruptcy provisions in the U.S Department of Treasury’s mortgage-market stabilization plan.  The pending legislation includes bankruptcy provisions that would allow bankruptcy judges to reduce the balance owed on a mortgage (cram down) and to rewrite the terms of mortgages.  The group believes that the provision will have negative consequences for the taxpayers, mortgage lending, and the credit markets.

SIFMA co-signed the letter with: the American Bankers Association, the American Financial Services Association, the American Securitization Forum, the Consumer Bankers Association, the Independent Community Bankers of America, the Manufactured Housing Institute, the Mortgage Bankers Association, the National Association of Home Builders, The Financial Services Roundtable, The Housing Policy Council, and U.S. Chamber of Commerce.