Definitions
from The American Heritage® Dictionary of the English Language, 5th Edition.
- noun A court-ordered reduction in the periodic payments on the balance of a debt, usually in line with a lower interest rate, sometimes granted to bankrupt debtors.
from Wiktionary, Creative Commons Attribution/Share-Alike License.
- noun law A court settlement in
bankruptcy in whichcreditors receive less than they were owed
Etymologies
from The American Heritage® Dictionary of the English Language, 4th Edition
from Wiktionary, Creative Commons Attribution/Share-Alike License
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Examples
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The term cramdown refers to the judge's ability to lower the value of the secured debt to the current appraised value of the home.
t r u t h o u t 2009
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The cramdown is a controlled method of forcing down asset prices to where they should be in the first place, because the alternative is for them to get repriced through foreclosure.
Matthew Yglesias » Taking on the Banks With Mortgage Cramdowns 2010
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HAMP has, indeed, been largely a failure, partly because the administration opposed congressional efforts to pass "cramdown" -- which would allow homeowners to renegotiate mortgages in bankruptcy and give banks greater incentive to negotiate modifications.
GOP Oversight Chair Calls For Probe Of Obama Foreclosure-Aid Program's Failure Ryan Grim 2011
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Small banks and credit unions had opposed letting judges reduce a mortgage to reflect a home's market value -- known as a "cramdown" -- despite weeks of wooing by Democrats.
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Homeowners, in particular, will be helped by the "cramdown" - a new form of court-ordered debt relief truly crammed down the lenders 'throats.
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Talking about the financial regulatory reform bill that moved through the House last week without any GOP support, Connolly referenced the flipping of 40 Democrats on a controversial amendment to give judges new power to rewrite home mortgages - known as "cramdown" - to showcase the approach vulnerable members have been taking on issues that the Senate has shown little appetite for.
One Old Vet 2009
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The House had passed virtually the same measure -- known as mortgage "cramdown" -- in March, but it died in the Senate.
Reuters: Top News 2009
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Talking about the financial regulatory reform bill that moved through the House last week without any GOP support, Connolly referenced the flipping of 40 Democrats on a controversial amendment to give judges new power to rewrite home mortgages - known as "cramdown" - to showcase the approach vulnerable members have been taking on issues that the Senate has shown little appetite for.
One Old Vet 2009
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Allowing judges to reduce the principal owed on a mortgage -- lenders call this a "cramdown" -- would lower the overall value of mortgage instruments, as a built-in bankruptcy discount would have to be applied, which would, in turn, harm consumers by restricting the flow of credit, banks say.
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People keep pretending that cramdown is going to cause housing prices to rise dramatically – either that, or they don’t know what the word “bubble” means.
Matthew Yglesias » Taking on the Banks With Mortgage Cramdowns 2010
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