Pelosi sees bankruptcy bill this week

WASHINGTON (Reuters) - The leader of the U.S. House of Representatives said on Monday lawmakers expect to begin debating legislation this week that would let judges erase some mortgage debt for borrowers who file for bankruptcy.

U.S. House Speaker Nancy Pelosi said Democratic leaders hope to bring mortgage bankruptcy legislation known as the "cramdown" bill to the House floor on Thursday.

"Hopefully Thursday," the speaker said to a reporter who asked when the bill would come to the floor, adding that the legislation should be introduced later on Monday.

The legislation would permit bankruptcy judges to erase some principal from troubled home loans just as they are able to adjust other consumer debt.

A Democratic Senate aide said the change would be matched with other housing initiatives that President Barack Obama believes are needed as part of his housing market rescue plan announced last week.

(Reporting by Susan Cornwell and Patrick Rucker; Editing by Andrea Ricci)