U.S. House rejects mortgage "cramdown" measure

WASHINGTON Dec 11 (Reuters) - In a win for the banking industry, the U.S. House of Representatives voted on Friday to reject a measure that would have allowed bankruptcy judges to change the terms of mortgages for distressed homeowners.

Known as "mortgage cramdown," the measure was defeated as a proposed amendment to a broader financial reform bill that was expected to win House passage later on Friday.

The House had approved a "cramdown" measure in March over the objections of Republicans and bank lobbyists, but it died in the Senate. (Reporting by Kevin Drawbaugh; Editing by Leslie Adler)