Lawmaker Puts Mortgage Servicers On Notice

Law360, New York (April 9, 2008, 12:00 AM EDT) -- A top U.S. House of Representatives lawmaker warned mortgage servicers Wednesday that they must either show support for proposals aimed at helping homeowners or face more government regulation.

Rep. Barney Frank (D-Mass.) is pushing a plan, the FHA Housing Stabilization and Homeownership Retention Act of 2008, that aims to provide a less costly alternative to foreclosure for mortgage lenders.

Under the plan, the borrower and mortgage holder would voluntarily negotiate a deal to reduce the mortgage principal down to a point where the borrower could reasonably...
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