Bowing to intense lobbying pressure from the mortgage industry, the U.S. Senate killed a bill Thursday to allow bankruptcy judges to modify loan terms on primary residences the way they can on second homes, yachts, cars and other pieces of property.
U.S. Sen. Mark Udall voted to give relief to financially-pinched homeowners trapped in overvalued mortgages, while his counterpart Sen. Michael Bennet sided with the Scrooge McDucks.
The American News Project caught mortgage bankers in a celebratory mood as it geared up to kill the homeowners bankruptcy protection, known as cramdown, in an episode that could only be called “Take Your Banking Lobbyist to Congress Day and Let Him Stomp All Over Your Right to the Courts.”
A spokeswoman for Udall told The Colorado Independent, “This was a vote about fundamental fairness for Coloradans. Sen. Udall voted to help thousands of hardworking Colorado families get the chance to stay in their homes, which would help stabilize the housing industry and help restore our economy.”
Bennet’s office hasn’t yet responded to a request for comment.