Lower mortgage rates may be good news for refinance-savvy consumers. But for the nation's portfolio lenders and investors in mortgage-backed securities, it's another story.

Claus Lund, senior vice president and head of mortgage asset management at BankAmerica Mortgage Co., is predicting another "nasty experience" for investors in mortgage-backed securities, as low rates trigger a new round of refinancing by the nation's homeowners.

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