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The oversight panel argues in a recent report that the Treasury’s current mortgage modification program focuses on the problem evident early in the financial crisis – subprime mortgages that people can’t afford. Panel member Richard Neiman said the second wave of foreclosures is coming more from a loss of income and unemployment.
“The mortgage crisis may have begun with unaffordable subprime or exotic loans, but it has expanded to capture an increasing number of homeowners with traditional, prime loans as the recession lingers,” said Neiman.
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