A proposed settlement with the top five mortgage servicers could prolong the foreclosure crisis, drive up mortgage interest rates, slow new home construction and cost $7 billion to $10 billion a year, according to a study from three top economists.

The study, which was commissioned by the financial services industry — including some of the servicers involved in negotiations — unequivocally states that terms sought by the 50 state attorneys general and a host of federal agencies would do more harm than good.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.