Now this will add plenty of uncertainty to an already nervous business climate. My guy and superanalyst Pete Davis tell me:
Senate Majority Whip Dick Durbin (D-IL) plans to introduce his bill from last year, S.2136, and a similar bill is expected to be introduced in the House. It would allow non-traditional and subprime first mortgages to be rewritten by bankruptcy judges. President-elect Obama endorsed the idea during the campaign, so there is a good chance for enactment. The mortgage industry has fought hard against the idea, saying it would reduce mortgage availability and would increase mortgage interest rates, but that doesn't seem to have persuaded supporters, who include some Republicans.