FDIC chief urges stepped-up foreclosure prevention
Posted: Thu Feb 09, 2012 9:48 amFDIC chief urges stepped-up foreclosure prevention
« Thread Started on Dec 2, 2008, 8:38pm »
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FDIC chief urges stepped-up foreclosure prevention
Posted: 05:21 PM ET
WASHINGTON (CNNMoney.com) — The nation’s top banking regulator warned Tuesday that help for troubled homeowners is failing to keep pace with the foreclosure crisis.
“We’re definitely behind the curve, and we fall further behind the curve every day,” FDIC Chairwoman Sheila Bair told an audience at the Fortune 500 Forum in Washington.
Nearly 280,000 struggling homeowners received some kind of foreclosure notice during October, according to RealtyTrac, a 25 percent increase over October 2007, and nearly 85,000 families actually lost their homes, an increase of 59 percent from the previous year.
Those increases illustrate the difficulties in getting foreclosures under control, including resistance from the investor community — the individuals and organizations that purchased many of these at-risk loans as mortgage-backed securities.
“The legal authority is there to modify loans but there are conflicting economic interests on the part of investors” in mortgage backed securities, Bair said.
« Thread Started on Dec 2, 2008, 8:38pm »
--------------------------------------------------------------------------------
FDIC chief urges stepped-up foreclosure prevention
Posted: 05:21 PM ET
WASHINGTON (CNNMoney.com) — The nation’s top banking regulator warned Tuesday that help for troubled homeowners is failing to keep pace with the foreclosure crisis.
“We’re definitely behind the curve, and we fall further behind the curve every day,” FDIC Chairwoman Sheila Bair told an audience at the Fortune 500 Forum in Washington.
Nearly 280,000 struggling homeowners received some kind of foreclosure notice during October, according to RealtyTrac, a 25 percent increase over October 2007, and nearly 85,000 families actually lost their homes, an increase of 59 percent from the previous year.
Those increases illustrate the difficulties in getting foreclosures under control, including resistance from the investor community — the individuals and organizations that purchased many of these at-risk loans as mortgage-backed securities.
“The legal authority is there to modify loans but there are conflicting economic interests on the part of investors” in mortgage backed securities, Bair said.