With pressure mounting for Congress to enact a 90-day moratorium on home foreclosures, mortgage servicers are warning that the move could have the perverse effect of prolonging the housing downturn.

"A foreclosure moratorium would make a correction take much longer and have unintended consequences on servicers who already have liquidity constraints," said Dennis Stowe, the president of Residential Credit Solutions, a buyer and servicer of distressed mortgages.

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