WASHINGTON — House Financial Services Committee Chairman BarneyFrank (D-Mass.) has sent a letter to several of the nation'slargest mortgage servicers urging them to “engage in an intenseeffort” to modify troubled mortgages.
Franks told the servicers to use the billion-dollar Bank ofAmerica settlement of predatory lending claims against subsidiaryCountrywide Financial Corp. as a template for wide-scale loanmodification. Franks said substantial interest rate reductions,reductions in principal and waivers of late fees prepaymentpenalties should be employed.
Franks wants immediate and specific action. He told theservicers to get back to the committee no later than Oct. 17.
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