A new government push to clean up bad home loans could dent bank earnings because the industry may have to take losses on the assets sooner than some investors expect.

The new effort, called Home Affordable Foreclosure Alternatives, or HAFA, kicks in April 5. Some banking and real-estate industry experts see it as a response to the limited success of a government loan modification drive known as the Home Affordable Modification Program, or HAMP.

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