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sheila bair on loan modifications

FDIC chief: Banks need to be willing to modify loans

by Moe Bedard

“Banks don’t want to acknowledge losses,” she said. “They need staff. And there’s fear of redefault risk,” since about 40 percent of loans that are modified end up back in default, she said.

Perhaps the biggest obstacle to resolving delinquent mortgages has been persuading investors who purchased the loans to go along, since many of them [...]

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FDIC’s Bair says loan modifications working

by Moe Bedard

CHICAGO, May 7 (Reuters) – Efforts at mortgage loan modification are having positive results, but their ultimate success will depend on the trajectory of the economy, Sheila Bair, chairman of the Federal Deposit Corp., said on Thursday.
“My sense is that it’s having an impact,” Bair said in answering questions after a speech to the Chicago [...]

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FDIC Chairwoman Says Loan Modification Plan Being Developed

by Moe Bedard

Sheila Bair, Chairwoman of the Federal Deposit Corporation (FDIC) is leading the loan modification charge in Washington and is gaining increasing support from Congress in her efforts.

Bair said in prepared remarks delivered before the Senate Banking Committee that the FDIC is working with the Bush administration to create a loan guarantee program that would serve as [...]

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Bair, “Permanently modify it, get people in a mortgage they can afford.”

by Moe Bedard

FoxBusiness – Let me begin with the FDIC Chair Sheila Bair who is featured on the cover of today’s Wall Street Journal criticizing the federal government’s plan for failing to address homeowners at risk of foreclosure. Her comments could not be better timed. Thankfully someone within the economic team is saying what certain members of [...]

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Statement of Sheila C. Bair Chairman FDIC on A Review of Foreclosure Mitigation Efforts

by Moe Bedard

Applying workout procedures for troubled loans in a failed bank scenario is something the FDIC has been doing since the 1980s. Our experience has been that turning troubled loans into performing loans enhances overall value. In recent years, we have seen troubled loan portfolios yield about 32 percent of book value compared to our sales [...]

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