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Lenders Bracing For More Defaults.(Brief article)

Mortgage Servicing News

| November 01, 2006 | COPYRIGHT 2006 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

PHILADELPHIA -- A survey by Phoenix Management finds a majority of lenders expect to see "softening" in their loan portfolios over the next six to 12 months.

In addition, 43% of lenders participating in the quarterly survey said their lending institution would likely allocate more resources to distressed portfolio management in the coming 18 months. The rest predicted that they would make no change in this area.

"This quarter, a number of indicators that we track through lender surveys are beginning to trend downward, most notably lenders' predictions about softening ...

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