At this moment Senator Dodd is working on a compromise with Republicans on a plan to deal with the housing crisis that has resulted from the sub-prime debacle. Republicans oppose a portion of the bill that would enable bankruptcy judges to cut interest rates on troubled subprime mortgages written in recent years. Judges are currently prohibited from doing so for a person's principal residence. President Bush and other Republicans argue that giving judges this power would prompt lenders to tighten their standards and raise interest rates. (The above is paraphrased from a Washington Post article by Lori Montgomery.)
The CFL would like to urge Senator Dodd to work towards a compromise that would grant judges this power on a temporary basis, perhaps for one year. This would accomplish the goal of allowing judges to help alleviate the current foreclosure crisis, and should remove the fears of the long term effects the GOP are using to argue against it.
(Posted by your chair, with approval from the State Central Committee.)
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