Washington, D C - Credit risk analysts recently told a Senate banking subcommittee that mortgage servicers are in the best position to stave off foreclosures. The servicers can offer borrowers loan modifications, forbearance agreements, extending amortization terms, adding balloon payments or restructuring or decreasing mortgage interest rates, panelists said. But some structured finance transactions have provisions that limit a servicer's ability to restructure the mortgage loans to a certain percentage of the loans, one panelist said.
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