Bondholders Gain Standing to Demand Action on More Mortgages

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A group of mortgage-bond holders has expanded to give members stakes of at least 25 percent in more than 3,000 securitizations, potentially putting them in a stronger position to force lenders to buy back soured home loans, lawyer Talcott Franklin said.

The number of deals the RMBS Investor Clearing House now has a big enough interest in to request action by bond trustees has climbed about 30 percent since a July statement by Franklin. The clearing house allows bondholders to coordinate without divulging to each other which securities they own.