WASHINGTON – Credit unions will be put on the defensive at today’s opening of the 111th Congress with the introduction of new bills that would allow bankruptcy courts to restructure at-risk mortgages.
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Lawmakers in the House and Senate said they will introduce the bills that would empower bankruptcy judges to lower principle and interest payments for troubled homeowners-so-called cram-downs–as the numbers of home foreclosures are expected to surge in the coming months.
The cram-down bill is one of several consumer measures expected to be launched in the coming weeks opposed by credit unions, including a bill to create government oversight of credit card interchange fees and additional credit card reforms.
