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| Secretary of the Treasury, Henry Paulson, is promoting a plan to freeze perhaps 1.2 million loans out of the 2.5 million that will adjust. Resistance is building from the securities industry to limit adjustments because investors purchased securitized packages based on the return. The servicers fear lawsuits over reduced investor returns. The industry is trying to balance the proposals to create relief without devaluing the securities.
Some 1 million loans will not see relief and perhaps fall to foreclosure. Finding people who need help, short sales or other opportunity seems likely to continue. Lenders Portfolio will continue monitor the trends as these mortgages adjust and report the findings to you. Related Links http://www.latimes.com/business/la-fi-subprime3dec03,1,2060412.story?coll=la-headlines-business |