Would the Financial Reform Bill Amendment Have Saved the Real Estate Industry?

The mortgage cramdown

The financial reform bill amendment, a measure that would have allowed bankruptcy judges to change the terms of mortgages for troubled homeowners (known as the “mortgage cramdown”) was shot down with a 188-241 vote in the House of Representatives on Friday. This spring, The House had approved the “mortgage cramdown” (opposed by conservatives and bankers) but it never went past the Senate.

Advocates of the amendment said the cramdown would help distressed homeowners while opponents claim it would raise costs for all homeowners. The cramdown has been a sticking point in Washington as bankruptcy filings skyrocket and the state of foreclosures is still grim and politicians are looked to for the answer.

Ultimately, what is the answer for distressed homeowners and the state of the real estate industry overall? Is it homesteads being claimed in bankruptcy filings, is it a surge in jobs or is it more regulation on lending? Tell us in comments what you think!