RichardfromHB

Citi's Flip-Flop on Mortgage Cramdowns: A Really Bad Idea

Only one other commenter had it right. This is not an issue about sanctity of contract. Corporations and high asset individuals have had the ability to ask a bankruptcy judge to modify their loan agreements for many years. Current law allows cram downs for mortgages on vacation properties, but not for those on first residences. Applying the same rules to first homes is NOT socialism, just an end to hypocricy. It also wouldn't be the end of the world as we know it since banks still wrote loans for yachts and vacation homes until the greedy guys broke the system.