WASHINGTON, D.C. — The Senate killed an amendment today that would have allowed bankruptcy judges to modify home mortgages for people facing foreclosure.
A version of the controversial provision known as a “cramdown” passed the House in March and was supported by President Obama as a last resort for keeping people in their homes.
Sen. Majority Whip Richard Durbin, D-Ill., who sponsored the legislation in the Senate, said it would have helped about 1.7 million borrowers.
But, in the end, vehement opposition from the banking industry, Republicans and even some Democrats prevented the measure from passing for the second time in two years.
Only 45 Senators voted for the provision, including Minnesota’s Democratic Sen. Amy Klobuchar.
Meanwhile, 51 senators rejected it, including all the Republicans voting and 12 Democrats.