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Frank Threatens To Bring Back Cram-Down Legislation
Courtesy of Tom Lindmark at But Then What
Barney Frank is blustering about the slow pace of mortgage modifications again and threatening to bring back cram-down legislation if things don’t start going the way he thinks they should.
From Bloomberg:
“People in the servicing industry and in the broader financial industry must understand that if this last effort to produce significant modifications fails, the argument for reviving the bankruptcy option will be extremely strong, and I think there is a substantial chance that the outcome will be different,” Frank, a Massachusetts Democrat, said.
This is probably a meaningless bluff. The Senate showed it has no interest whatsoever in cram-down legislation and trying to ram it through with so many other things on peoples’ plates is a fool’s errand. There’s also a sense taking hold, whether true or not, that the worst of the housing crisis is behind us and it’s a mopping up action now.
Congressman Franks was probably playing to the cameras and reinforcing his populist bona fides. I doubt either he or any of his colleagues have much stomach for stirring up this hornets nest again.
