Citigroup has reached a deal with key senators that may pave the way for judges alter mortgage loans to help homeowners stay in their homes.

Cramdowns as they are called, are when judges force lenders to modify the original terms of a loan.

This is the breakthrough we've been waiting for, to have a major financial institution support this legislation will create an incentive for others to come our way, said Sen. Durbin, the author of a bill involving bankruptcy judges and loan modifications, according to the Wall Street Journal I want to congratulate Citi for being open-minded about this [and] playing a major leadership role.

The legislation must still be approved by both houses of Congress. The Durbin bill is supported by Sen. Christopher Dodd of Connecticut, Senante Banking Committee Sen. Chuck Schumer.