Reuters

Stimulus Package to Include Cram-Downs: Report 

The latest round of economic stimulus currently being crafted by Senate Democrats is likely to include controversial legislation allowing so-called “cram-downs” of mortgage debt in bankruptcy, according to a Reuters report Monday evening. The proposal, long opposed by key lobbyists in the mortgage industry, would allow judges to reduce mortgage debt on primary residences as part of a bankrupt borrower’s debt restructuring plan.