House Financial Services Chairman Barney Frank urged four of the nation's top banks to adopt principal writedowns on second-lien mortgages to allow borrowers to keep their homes.

In a letter dated March 4, Frank said many investors in first-lien mortgages are willing to accept losses, but modifications are still being held up because second-lien holders are not budging.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.