This is good news for America and the average person long-term: Plan to Let Judges Alter Loans Stalls

If this legislation passes, mortgage rates for everyone, everyone, will be higher to accomodate for a percentage that could be subject to a cramdown.

From The Wall Street Journal:

Opposition from the banking industry and moderate senators of both parties has stalled a proposal to let judges modify mortgage terms in bankruptcy court.

The judicial maneuver, known as a "cramdown," is endorsed by President Barack Obama and the Democratic leadership as part of a sweeping plan to help strapped homeowners.

The cramdown issue has become a flash point for lawmakers who seek to aid homeowners -- in particular those who owe more than their house is worth -- and lawmakers who feel such aid penalizes people who have kept up with their debts.