WASHINGTON - Companies that collect mortgage payments could earn $500 for every loan they modify to avoid default under a plan developed by the federal regulator of the nation's savings and loans.
As millions of adjustable-rate loans approach reset dates on which mortgage payments will soar, John Reich, director of the Office of Thrift Supervision, says the plan, which would be funded from surpluses in mortgage-backed securities, could lower the default rate for homeowners. If the plan is adopted, it could help offset a worsening credit crisis.
ASSOCIATED PRESS
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