Bair lets latest foreclosure wrinkle slip
By: PAUL JACKSON
October 23, 2008
While we focused on Sheila Bair’s update to IndyMac Federal’s loan modification program, the FDIC chairman also let fly in Congressional testimony today with a few sentences that foreshadow what may be yet to come under TARP:
The statute grants authority to the Secretary of the Treasury to use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.
Loan guarantees could be used as an incentive for servicers to modify loans. Specifically, the government could establish standards for loan modifications and provide guarantees for loans meeting those standards. By doing so, unaffordable loans could be converted into loans that are sustainable over the long term. The FDIC is working closely and creatively with Treasury to realize the potential benefits of this authority.
Think Hope for Homeowners, but without the strings attached. BusinessWeek’s cover this week spelled capitalism with a K, and this is part of the brave new world in mortgage lending and servicing, too.
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Events
2009 Feb 08 -- 2009 Feb 11
ASF 2009
The largest U.S. conference by and for the securitization industry. This year's agenda takes on added importance given financial turmoil. For more information: http://www.americansecurization.org
2009 Feb 17 -- 2009 Feb 19
MBA Mortgage Servicing Conference & Expo
The MBA's annual event for residential mortgage loan servicers is likely to be pretty well-attended this year. For more information: http://www.mortgagebankers.org
2009 Feb 25 -- 2009 Feb 28
MidWinter Executive Housing Conference
FHFA's James Lockhart keynotes this long-running independent event, now in its 38th year. As famous for skiing as for its sessions. For more information: http://www.midwinterconference.com/
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