Mortgage Servicers Urged to Head Off Foreclosures

September 4 2007 CNBC.com U.S. banking regulators Tuesday urged mortgage servicers to be proactive and contact borrowers at risk of default to help them avoid foreclosure and keep their homes. The regulators, headed by the Federal Reserve, said mortgage servicers should try to help troubled borrowers who face drastically higher payments refinance into fixed-rate loans and take other steps to make the mortgages sustainable. "We encourage servicers of securitized mortgages to reach out to financially stressed homeowners," Fed Gov. Randall Kroszner said in a statement. "Keeping families in their homes is matter of great importance to the Federal Reserve."

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