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By Luke Mullins
US News & World Report
November 5, 2008
"Expect the Obama Administration and the Democrats in Congress to get more aggressive in their efforts to keep struggling borrowers in their homes. Here’s an example of one controversial idea that has a much better shot at becoming law in the current political landscape.
"Bankruptcy Reform: With the democrats running the government, the odds of bankruptcy judges obtaining the authority to modify distressed home loans on primary residences become significantly better. ... Under such a plan, bankruptcy judges would have several ways to modify mortgages to prevent foreclosures. They could lower the interest rate, extend the payment terms--say, from 30 years to 40--or even approve a reduction in the outstanding loan balance to reflect the current--lower--value of the home, in what’s known as a 'cram down.'
[ ... ]
"[W]ith foreclosures mounting, look for the Democrats use bankruptcy reform as a populist vehicle to make good on their campaign promises."
To read the full article, click on the Title Line, above.
Background - Prior Statements:
- Obama Vows to Change Bankruptcy Laws
Xinhua News Agency and Free Republic.com
January 18, 2008
"Senator Barack Obama ... vowed to change bankruptcy laws and cap interest rates during his campaign tour in Southern California, the Los Angeles Times reported [on Thursday, January 17, 2008].
"During what his campaign dubbed a 'Roundtable on Economic Opportunity' there, Obama called for an exemption in the 2005 bankruptcy bill for people who can persuade a bankruptcy court that they filed for bankruptcy because of debts caused by medical expenses.
"His proposal also includes extending the 36-percent limit on payday loans to military members to all Americans; encouraging banks, credit unions and community development financial institutions to provide affordable short-term and small-dollar loans; establishing a credit card bill of rights and significantly increasing emergency pre-foreclosure counseling resources[.]"
- Obama Calls for Bankruptcy Overhaul, Offers Tuition Plan
Associated Press and Sioux City Journal
November 8, 2007
- Barack Obama – Positions on Poverty and Economic Opportunity
Focus on Poverty and Opportunity
(Updated November 4, 2008)
(From "About Spotlight"): "Starting with the presidential primaries, Spotlight [has] served as a 'one-stop shop' for information on what each candidate was saying about poverty and how he orshe would address the problem as president. ... With the culmination of the presidential race, Spotlight’s focus will include monitoring efforts by the Obama Administration and Congress to fight poverty, while providing a non-partisan platform for innovative ideas, programs and practices at the federal, state and local levels."
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