Kohn on Fed's recent regulatory initiatives

The Fed and other banking agencies have encouraged mortgage lenders to pursue prudent loan workouts in order to help struggling homeowners, said Donald Kohn, the vice chairman of the central bank.

Lenders should take measures such as modification of loans, deferral of payments and extension of loan maturities, Kohn said. The Fed had also collaborated with community groups to help homeowners avoid foreclosure.

The Fed had taken action to protect consumers in their mortgage transactions in the

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