Investors Raise Pressure on Mortgage Lenders

Banks face mounting claims over losses tied to ‘faulty’ loans

By John W. Schoen

Senior producer

Since the housing bubble burst more than three years ago, lenders have been fending off legal challenges from homeowners who say they were duped by bad mortgages. Now the industry faces a potentially more formidable adversary: investors who bought bonds backed by those bad loans.

 

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