Banks balk at US Treasury mortgage loss guidance

Some of the biggest mortgage companies are balking at the U.S. Treasury’s guidance to recognize losses after making certain loan modifications.

Mortgage servicing companies, including Bank of America Corp (BAC.N) and JPMorgan Chase & Co (JPM.N), said in a survey by investors they do not plan to mete out losses when forbearing principal for homeowners, as is recommended in recent Treasury guidance, Amherst said in an Aug. 18 report.

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