Long Beach, CA.  We are very concerned about this development for future mortgage pricing.  In what appears to be a reversal in position for the banking industry, Citigroup Inc. is in talks with lenders regarding legislation to permit mortgage restructuring in bankruptcy court. The industry previously has warned that "cram downs" would boost borrowing costs, but such bankruptcy reform has the support of many Democrats as well as President-elect Barack Obama. Sen. Dick Durbin, D-Ill., introduced a bill on Jan. 6 to allow bankruptcy judges to restructure mortgages, and similar legislation was also raised in the House. Some estimates say this will increase the cost of a mortgage by 50 basis points in rate to one point.  The Mortgage Bankers Association is opposed to this, but given the dem... 01/08/2009