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Senate 'cramdown' bill ready by next week

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Published: April 18, 2009 at 1:12 PM

WASHINGTON, April 18 (UPI) -- U.S. Senate Democrats backing a law to allow judges to write down the principal on some home mortgages hope to have a compromise next week, sources say.

Financial industry sources told the Washington publication The Hill Friday that backers of the so-called cramdown legislation -- which seeks to aid homeowners who owe more on their homes than their market value -- are looking to overcome vociferous opposition from the banking industry and have a measure ready for a vote by Tuesday.

So far, however, the main backer of the legislation, Senate Majority Whip Dick Durbin, D-Ill., has yet to find any Republican votes after the measure passed the House of Representatives last month. Durbin has been in negotiations with JPMorgan Chase & Co., Wells Fargo and Bank of America in seeking a compromise, The Hill said.

"We don't have a deal, and there is not a deadline," Durbin spokesman Max Gleischman said.

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