cramdown
cram down

Many market participants believe that some form of bankruptcy cramdown law will be passed in 2009.

An attempt to include cramdown in a continuing resolution got the same response from the president.

Four months later, the stimulus bill presented another potential vehicle for cramdown.

For example, lenders want the cramdown authority to expire by 2014.

It makes no mention of cramdown as being needed to compel compliance.

Democratic leaders offered to exempt the politically popular smaller banks from the cramdown law, but no deal was reached.

Treasury also stressed the effects of cramdown on the nation’s biggest banks, which were still fragile.

Cramdown is already allowed for other forms of consumer debt, such as mortgages on holiday homes.

Only mortgages closed before the date of enactment will be eligible for a cramdown.

Will creditors stand for more of a cramdown?

If Congress had passed the bankruptcy cramdown, it would have set the precedent that the rules of the game can change, retroactively, at any time.

It's a process known as a cramdown.

Under the change, known as 'cramdown,' bankruptcy courts could alter the terms of mortgages, subject to certain conditions, the senators said.

Even some financial services industry executives privately acknowledged that cramdown was likely to be enacted and worked instead to limit its scope.

When Obama unveiled his proposal to stem foreclosures a month after taking office, cramdown was a part of the package.

Although it calls the new compromise a good step, the industry is still opposed to the measure it brands the "cramdown."

We still can't rule out a cramdown solution from the court for the pari passu saga.

The Task Force did not endorse the cramdown concept for the Canadian system.

Bankruptcy law provides for the possibility of a "cramdown," in which the judge would force the plan through despite the objection of the parties.

The sides remain far apart; some close to the negotiations characterize the county's efforts as a "cramdown" that provides little for the note holders.

Department of Transportation concurred with this assessment in urging the end of "cramdown" authority.

But Democratic majorities are now large enough to virtually guarantee passage of cramdown legislation, maybe as early as this month.

The administration has called the cramdown provision the stick that lenders will face if they do not do enough to help troubled homeowners.

It not only has the bankruptcy cramdown in it, but it also does some things that are so important (inaudible).

The bill passed 91-5 after an amendment to allow bankruptcy judges to modify mortgages, known as "cramdown," was stripped from the legislation last week.

A large percentage of delinquent borrowers could benefit from cram downs,' the report states. '

That said, emerging legislation on Cram downs poses a material threat to US capital, over and above the $5bn we identified, in our view.

It also suggested allowing courts to reduce the amount homeowners in personal bankruptcy owe on their mortgages without the consent of their lenders — so-called cram downs.

Bankruptcy mortgage reductions – known by the pejorative term "cram downs" by the banking industry -- could help 1.7 million consumers avoid foreclosure, according to the Center for Responsible Lending.

THANKS largely to the ever expanding pension debacle, we are in the middle of "the Decade of the Cram Down," declares Daniel Gross, who writes the Moneybox column for Slate (slate.com).

As a potential solution to the subprime mortgage crisis, legislators and consumer advocates have advanced a proposal to allow cram downs on these loans, and legislation to that effect was introduced for potential inclusion in the Emergency Economic Stabilization Act of 2008.

Any such increases or special assessments would affect Bank Mutual's results of operations in future periods. -- The current economic turmoil has increased the potential for federal or state governments to legislate foreclosure forbearance, forced loan modifications, or "cram downs" of losses to lenders in bankruptcy proceedings.