Dispute among Wall Street titans could affect millions of mortgages at risk of foreclosure
June 14th, 2007 . by Brecht PalomboTuesday, June 12, 2007 By ALAN ZIBEL AP Business Writer
WASHINGTON (AP) Millions of Americans with weak credit who took out mortgages the past few years are caught in a tug of war between Wall Street firms, banks and hedge funds.
Who wins the dispute could have more impact on how many homeowners get financial help to avert default and foreclosure than anything Congress or regulators are contemplating in the near term.
Washington seems to be taking a wait-and-see approach even as the housing market’s woes worsen. Foreclosures in 2007 are twice what they were two years ago at this time.
And monthly payments on more than 8.4 million adjustable-rate mortgages issued since 2004 will be affected by rising interest rates on reset dates the next few years. Research firm First American CoreLogic predicts $326 billion, or 13 percent, of outstanding loans will default. (Click here to read the full article)
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