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. Executives from JPMorgan Chase, Citigroup, Bank of America and Wells Fargo said in their testimony that reducing the principal on some borrowers loans would raise other issues and could ultimately increase costs for other borrowers.

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