I believe that I also mentioned that the "cramdown" provision has long been available to investment property as well as vacation home owners, and we have not witnessed those people filing for bankruptcy in herds.
Also, I believe that borrowers must show that they have made attempts to negotiate with lenders, prior to going to bankruptcy court.
I'm not sure if this is an ideal solution to the problem, but I do think it might just be a necessary evil.

Some banks will just stop making mortgage loans because of the risk

I believe that if they want to remain competetive and make money, they will continue making mortgage loans - they will just have to do it more responsibly.

I believe that if they want to remain competetive and make money, they will continue making mortgage loans - they will just have to do it more responsibly

Do you know what a yield curve is? Basically it's the profit a bank makes on the difference between what money costs them and what they make in interest on their loans. It's a very narrow spread - usually about 1.5%. There's not much room for a lot of loans getting forced down there.

Smaller banks with little margin for error will do the RESPONSIBLE thing and get out of the mortgage business all together because of the risk. Or, the only people who will be able to qualify will be those who don't need a loan.

Ulya, I have a minor in economics, I'm somewhat familiar with the yield curve. My question is - are you? Am I talking to you or your husband and his masters in finance here? If theory translated into fact, we would have nothing to worry about.
The point I was making was my 3:59 post: "the "cramdown" provision has long been available to investment property as well as vacation home owners, and we have not witnessed those people filing for bankruptcy in herds."

Seriously, without getting into yield curves, spreads, and whatever else... the only thing that this bill is doing, is making available to the rest of the population, privileges afforded to those owning more than one home, rental, and other investment property. In other words - leveling the playing field.
It may not be fair( and I'm kind of inclined to say that I don't think it is), but at least now its available to all.

Nikto zdes' (including me) v ekonomike ne razbiraetsa
Лина, тогда почему вас задело, что я в дала доступное объяснение на английском, чтобы вам и другим кто почитает (и кто не очень разбирается в экономике) было понятно*-). щ

ёNe mozhesh po syschestvy pisat', sidi i ne gavkai.

То, что шуток вы не понимаете я давно поняла (в вашем садике, наверно, это не проходили). *А выходит, если по существу, - вам тоже не нравиться. Т

Seriously, without getting into yield curves, spreads, and whatever else... о

Как же ,without ? Это же очень важно. *шуток вы не понимаете я давно поняла, а кто-то в *щёееещёещё
Also, ya schitau chto ludi dolzhni znat' svoe mesto v zhizni...

Лина, здесь я с вами согласна. Если только и умеешь, что flip hamburgers, не претендуй на зарплату инженера, програмиста, финансиста и т.п. *Как говориться, кто на что учился. А Обама с его программами хочет всех под одну гребёнку.

Поэтому, повторяю, что I want Obama to fail (his programs, all of them), he's destroying this beautiful country.

Лина, тогда почему вас задело, что я в дала доступное объяснение на английском, чтобы вам и другим кто почитает (и кто не очень разбирается в экономике) было понятно

Gde eto menya zadelo?

Как же ,without ? Это же очень важно.

Uliya, you (or rather your husband) are attempting to analyse the impact of something that has yet to happen. We are not discussing projections or forecasts here, so kindly stick to the topic at hand.
Is writing off topic, Ulya, your way of changing the subject? *Because right now youre making almost as much sense as GW. You brought up the cram down bill, and I let you know that it was nothing new... please try to adhere to the conversation at hand.

Поэтому, повторяю, что I want Obama to fail (his programs, all of them), he's destroying this beautiful country.

If anyone is destroying this beautiful country of ours, it is hateful, narrowminded, intolerant people such as yourself, Ulya.

Лина, не показывйте своё истинное лицо (недоброе).
We are not discussing projections or forecasts here, so kindly stick to the topic at hand.

Во-первых, вас никто не заставлял отвечать, а во-вторых, какое отношение к теме имеют ваши пионерские восспоминания и фотография в школе?
И как быстро вы хотите менять тему, после того как я изложила реальные экономические факты.