Professor Eggert Quoted on Loan Modification Legislation
January 8, 2009
Professor Kurt Eggert was quoted in a story in Business Week about potential federal legislation that might allow borrowers to modify their home loans in bankruptcy, entitled “Does Citigroup Stand Alone? Industry Balks at Bankruptcy Bill.” In the piece, Professor Eggert stated, “Having bankruptcy cramdowns is a way of instilling discipline to subprime lenders.” Investors could be more vigilant because they “aren’t going to want to buy bad loans where there’s going to be a cramdown.” Read story…