Big banks push back against pressure to cut loan balances

04/13/2010 | Wall Street Journal, The

Some of the nation's largest mortgage lenders are raising concerns about an effort to reduce the principal on some borrowers' home loans. In written testimony for a hearing of the House Financial Services Committee, the banks sought for the focus to shift to other methods of curbing foreclosures, including a reduction in interest rates. Bank executives say reducing the principal on some borrowers' loans would raise other issues and could ultimately increase costs for other borrowers.

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