Mortgage Lenders Pressed to Cut Balances for Distressed Owners

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mortgage lendersThe nation's five largest mortgage lenders may be forced to reduce loan balances for distressed homeowners as part of an agreement with state attorneys general and the Obama administration to settle claims of faulty mortgage practices, a top state official involved in the negotiations said Tuesday.

The proposal is part of a set of remedies that banks would have to agree to in order to settle the state and federal probes launched last autumn, which found that the largest mortgage firms illegally seized the homes of at least dozens of borrowers and engaged in shoddy practices that short-changed troubled borrowers.

Read the full story at The Huffington Post.

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