Adult Political Discussion

[DewDiligence]

Should Sheila Bair Be In Charge of Cleaning Up the Toxic Mortgage Crisis?

http://loanworkout.org/2008/08/the-fdic-sheila-bair-to-be-in-charge-of-cleaning-up-the-toxic-mortgage-crisis

›By Moe Bedard
August 27, 2008

This blog and my life has been dedicated to following what lenders, servicers and our government have done and are doing to assist the millions of Americans that are facing foreclosure as a result of being sold defective credit instruments. A.K.A. subprime and ALT A mortgages.

In my hundreds of hours of research and work, only one agency and person seems to have a “true” grasp of reality and what needs to be done in order to help clean up the mortgage and housing mess.

That agency is the Federal Deposit Corporation (FDIC) and that person is the Chairwoman, Ms. Sheila Bair.

The recent takeover by the FDIC of Indymac Bank and the subsequent immediate changes to their loss mitigation and loan modification policies shows just how powerful and effective government intervention can be. Prior to the takeover, Indymac Bank was one of the absolute worst banks to deal with for struggling homeowners.

Now, Indymac borrowers are getting the help and answers they deserve. Instead of cold shoulders and abusive collection techniques that was the norm before the FDIC came to town.

There has not been one agency or person more vocal about helping struggling Americans with government intervention then the FDIC and what disturbs me is that they “know” more about the “true state” of the US banking system, and the warning signs coming from Ms. Bair and the FDIC have been loud and clear.

Attention Congress!! Are you listening?

We are going on more than a year of warnings from the FDIC to step up pressure on loan modification efforts by servicers and now they are warning of more bank failures to come. Today in the New York Times, it was reported that the FDIC may need to borrow money themselves to insure the potential of trillions of dollars in losses for US banking customers.‹