.A consortium of trade associations sent a letter to Congress today, urging its members to drop the proposal to include a bankruptcy “cram down” or the ability to allow judges to reduce the balance owed on a mortgage and to rewrite the terms of mortgages.

The implications of such a plan, they said, would increase the cost of credit and reduce its availability for consumers, as well as fuel the credit crunch by making MBS harder to value and sell.

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