Rep. Barney Frank (D-Mass.) has demanded that the country’s four largest banks take “immediate steps” to write down second mortgages. In a letter to the ceos of Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, Frank, chairman of the House Financial Services Committee, warned that that banks’ failure to address the second-mortgages issue is hurting efforts to reduce first-lien mortgage balances of borrowers who are underwater. The result, said Frank, is that “homeowners are increasingly deciding to walk away and thus foreclosures continue to mount.”
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