Executives from the nation's four largest residential servicers told Congress on Tuesday that their firms will accept "proportional" modifications on second liens but only when a first mortgage is modified and the principal reduced in a similar fashion.

The four mega-servicers signing on to the government's second lien modification program (2MP) include Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. Together, these four firms control 60% of the residential servicing market, according to figures compiled by National Mortgage News.

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