Us lenders push for court control

US mortgage lender Citigroup, along with several other large providers, are in talks with the US Attorney to allow judges to modify mortgages in bankruptcy court...

The Wall Street Journal has revealed that Citigroup has not definitely confirmed that it is fully behind the "cramdown" legislation, but it is keen to be a leading voice in the matter before Barack Obama takes office in two weeks.

The Democrats brought the idea for judges to take control of repossessions before Congress on Tuesday. The party wants judges to be able to cancel some of all of a mortgage debt in an attempt to curb rising repossession rates across the USA.

The WSJ says the move may come on its own, or may be part of a larger stimulus package.

New York Democrat Senator Charles Schumer told the WSJ, "We think it would be great to put this on the stimulus, and the bank support will make it all the easier to accomplish that."

Source: Money Marketing