A securitization servicer's controversial decision to sell a chunk of performing mortgages along with nonperforming ones at a loss underscores why investors want to better understand actions affecting their returns.

Last summer, SN Servicing Corp., based in Baton Rouge, La., sold an undisclosed number of loans at a loss from a real estate investment conduit created back in 2002. The company says it sold some good loans along with bad ones to get a better price for the package, mitigating the loss to investors.

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