The nation's foreclosure crisis has resulted in loan closings being scuttled in some regions of the nation and fears are mounting that if the situation isn't rectified soon it will damage the one area where lenders are posting stellar profits: new originations.

John Walsh, CEO of Total Mortgage Services (TMS), Milford, Conn., said Connecticut's recently installed 60-day voluntary moratorium on foreclosure sales caused his firm to scuttle REO-related closings over the past two weeks with more cancellations in store for this week.

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