One of the flames that ignited the Great Recession may be weakening.

Last month, the volume of private-label securitized mortgages that were liquidated through foreclosure was nearly as high as the amount that defaulted for the first time, according to Amherst Securities Group LP. The pace of first-time defaults in this sector has been falling since January, Amherst's data showed. If the trend persists, liquidations could soon be outpacing new defaults.

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