House Democrats have pushed back a vote on legislation that would allow bankruptcy judges to rework the mortgage loans of troubled borrowers, amid hesitations from moderate Democrats about the measure.

The postponement comes shortly after the legislation's Senate author, Sen. Dick Durbin, D-Ill., said he would be open to limiting the measure to just subprime mortgages, a large concession to the banking industry.

House Speaker Nancy Pelosi, D-Calif., said the vote, which was scheduled for Thursday, would now occur Monday evening after the Democratic caucus meets with Housing Secretary Shaun Donovan to discuss the measure.

However, she said the House would set guidelines to debate the measure and begin that debate Thursday.

Moderate Democrats are wavering partly due to the remarks by Durbin, banking lobbyists said. Durbin on Tuesday told the American Banker, a trade publication, that, "I'm willing to restrict this to subprime mortgages."

Some Democrats began to balk at supporting the broader legislation amid signs the Senate would consider something more narrow, the lobbyists said. Also, the Obama administration has also proposed tighter restrictions for the legislation.

Democrats asked their leaders for more time to consider the legislation at a meeting Thursday morning, according to a House leadership aide.

Under the legislation, strapped borrowers can have the principal balance of their mortgage loan reduced by a bankruptcy judge - known as cram down. Currently only vacation properties, not primary residences, can be crammed down by judges.

The banking industry has been lobbying fiercely against the measure, saying it would raise borrowing costs on all homeowners. The measure has nonetheless gained momentum in recent weeks due to the shift in power in Washington and the perception that mortgage servicers haven't done enough to help strapped borrowers.

The Obama administration has made it a central plank of its plan to prop up the housing market. However, officials have said they view it as a last resort, to be used only when serious attempts at voluntary modifications fail.

The administration proposed that only borrowers who prove they cooperated with requests from mortgage servicers for essential information be eligible for a cram down. It also proposed limiting court-ordered modifications only to mortgages below the size that Fannie Mae (FNM) and Freddie Mac (FRE) are allowed to own or guarantee.

Neither restriction is contained in the House legislation. However, Rep. John Conyers, D-Mich., this week the measure's chief House sponsor, agreed to tighten eligibility requirements slightly. He has offered an amendment requiring borrowers to provide mortgage servicers a written statement of their income and expenses at least 15 days prior to filing for bankruptcy.

Aside from the bankruptcy measure, the legislation also includes provisions to erect a safe harbor against investor lawsuits for servicers that modify loans and to revamp the Hope for Homeowners program.

-By Jessica Holzer, Dow Jones Newswires; 202-862-9228; jessica.holzer@dowjones.com

(Michael Crittenden contributed to this report.)