Treasury Skips Cramdown Hearing

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Thursday, July 09, 2009 at 7:06 pm

Hoping to bring “cramdown” legislation back onto Congress’ radar, a House Judiciary subpanel met this afternoon to re-examine whether bankruptcy judges should be empowered to alter mortgage loans in order to prevent foreclosures.

Witnesses included the obligatory consumer advocates, a conservative think-tanker and a university professor. But the Treasury Department, although asked to send a representative of its own, declined to do so.

A Democratic aide said the agency was simply too slammed this week with other hearings to meet the request (and the Treasury didn’t respond to requests for comment), but the pattern is getting suspicious.

President Obama campaigned in support of cramdown last year, and endorsed it again in February when he unveiled the administration’s foreclosure mitigation plan. But since then, the White House has done very little to ensure the bill’s success. In April, for example, Treasury Secretary Tim Geithner was hardly enthusiastic when asked if bankruptcy changes were a vital element of the administration’s plan to stem foreclosures.

More recently, the White House watched in silence as the cramdown bill was obliterated in the Senate, where 12 Democrats voted against it. Some Democrats said later that they interpreted the president’s silence to mean they were free to oppose the measure.

And now here’s the Treasury, in the middle of the continued foreclosure crisis, saying it’s too busy to talk with Congress about ways to keep folks in their homes?

Are we missing something?

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Comments

11 Comments

Treasury Skips Cramdown Hearing
Pingback posted July 9, 2009 @ 8:23 pm

[...] News Sources wrote an interesting post today onHere’s a quick excerptHoping to bring “ cramdown ” legislation back onto Congress’ radar, a House Judiciary subpanel met this afternoon to re-examine whether bankruptcy judges should be empowered to alter mortgage loans in order to prevent foreclosures. Witnesses included the obligatory consumer advocates, a conservative think-tanker and a university professor. But the Treasury Department, although asked to send a representative of its own, declined to do so. A Democratic aide said the agency was simply too slamm [...]


Treasury Skips Cramdown Hearing | Foreclosures For Profit
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berntlovenberg
Comment posted July 10, 2009 @ 3:48 am

I am now against Obama!


kb123
Comment posted July 10, 2009 @ 4:09 am

If Obama wants another term, he had better support cram down…..I have followed cram down all the
way through and saw how he did not promote it. It just made me sick to see all of his agenda pass, but
nothing to help people stay in their homes. I WISH JOE LIEBERMAN WOULD RUN FOR PRESIDENT, HE
WOULD HAVE MY VOTE. NOT PRESIDENT OBAMA, OR ANY REPUBLICAN OR BLUE DOG DEMOCRAT
THAT VOTED AGAINST HELPING PEOPLE HAVE SOME LEVERAGE AGAINST THESE GREEDY BANKS.
OUR ECONOMY WILL NOT RECOVER UNTIL BANKRUPCY REFORM HAS PASSED……..


Doogie
Comment posted July 10, 2009 @ 6:30 am

Shame on OBAMA, the Government and our Senators. The government is for the banks not the little people like myself who voted these fools in. My bank, my brothers bank and my sisters bank wont even modify our mortgages, they basically told me to go to hell and let the home go into forclosure. Wow thanks government go ahead and hand these precious banks more money. Each one of us are negative $279,000 K after puting down $200,000 when we bought. Shame on these banks. We need a whole new elected government including new Senators. NEW SENATORS that is what we need, VOTE FOR NEW SENATORS! May my bank go to He__!


Apt604
Comment posted July 10, 2009 @ 6:56 am

I suppose Geithner has a better idea for dealing with foreclosures??


treetracker
Comment posted July 10, 2009 @ 7:10 am

I guess when enough people are without jobs and are homeless and without health care, we can all go camp on the Washington Mall. Perhaps, only then, might the American people get the attention THEY deserve.


shanefax
Comment posted July 10, 2009 @ 12:10 pm

Actual Guidelines From the Treasury
http://www.treas.gov/press/releases/reports/mod…

I just love this part that specifically tells the mortgage company they don't have to reduce principal:
Principal Reduction Option:
There is no requirement to use principal reduction under the Home Affordable Modification program; however, servicers may forgive principal to achieve the Front-End DTI Target.

Here is A Modification Calculator:
http://www.hughchou.org/calc/hasp.php

The only way to get help from our government is to CALL or Write Then: Calling is better.

The bill allows for some payment relief by getting to a 2% rate for a 40 Year Term. But if you live in places where home prices are upside down like Florida, Nevada or California its probably just not going to work. What good is this program when 1 in 10 people are upside down in there mortgages?


strangely_enough
Comment posted July 10, 2009 @ 3:59 pm

“Some Democrats said later that they interpreted the president’s silence to mean they were free to oppose the measure.”
That's a shocker. “More Dems” just keeps paying dividends. Just not to the voters.


kathleengrassoandersen
Comment posted July 13, 2009 @ 8:50 pm

I'm not at all surprised that the Obama adminstration is soft-pedalling something that he campaigned on…he's mesmerized by the myth of bi-partisanship. Transparency and accountability…remember those quaint concepts??? Well, it takes two to tango and the GOP can only square dance. They act like brats in a sandbox and will continue to do so until they receive the spanking they so richly deserve.

Our hard earned tax dollars went to banks and Wall Street by the billions only to be used as bonuses to reward the CEO's who brought us this crisis…while we got a whole $250…whooppeee. they're hanging on to our tax dollars instead of easing credit so they can swoop in and take everyone's home to boot. What's wrong with that picture?For shame!!!!

Consummate consumer advocate Ralph Nader would never have let this happen.


jjohnson85249
Comment posted July 18, 2009 @ 11:13 pm

wall street lackeys now include the white house

When Geittner and Obama had the chance to push for loan modifications through the courts (bankruptcy judges)they chose wall street over main street. housing would have already started to recover if the legislation would have passed. Obama and Geittner chose to join a group of wall street lackeys – senators kyl, bayh, martinez,spectre and others rather than give homeowners a negotiating tool that would have been far more effective than anything thats been tried.Obama and Geittner are trying to save face by threatening the loan servicers (much the same way that they did with the banks that the taxpayers have bailed out)and no one is intimidated by this.The banking / mortgage interests are running this country and you can look at your elected officials campaign contributions to verify it. as long as wall street continues to pay for our elected officials votes- we don't stand a chance.perhaps next elections we (voters) should VOTE OUT all the incumbents and start over


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