Category Archives: fdic

Government Intervention To Stem Foreclosures

From Boston.com: A group of Bay State religious leaders and community activists will meet today in Washington, D.C., with officials from President-elect Barack Obama‚Äôs transition team, the Treasury Department and members of Congress to push for more loan modifications to … Continue reading

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FDIC Revamps Proposal

Report: The Federal Deposit Insurance Corporation (FDIC) proposed on Friday to spend $24 billion of the $700 billion bailout package to help 1.5 million households avoid foreclosure. This new plan is a mild deviation from the FDIC’s $40 billion incentive-based … Continue reading

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Another Attempt To Reduce Foreclosures

In 2005, we had a massive housing bubble. Since then, housing prices have plunged and foreclosures have soared. We’ve had massive government intervention into the free market and we’re likely to get more. The most likely next step is the … Continue reading

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FDIC Offers To Insure Mortgages

The federal government wont offer to make up for the loss lenders will take when they restructure loans, but these losses will be less than mass foreclosures. Expect a cash-flow test. From the Financial Times: The US government and federal … Continue reading

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FDIC To The Rescue?

Politicians are looking into all sorts of ideas for channeling aid to distressed homeowners. All of these plans however give aid and succor to those who’ve made bad decisions. America already does more to enable mortgages than any other country … Continue reading

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Sheila Bair Getting Mad Props

Will Sheila Bair become the Treasury Secretary? Bair was the FDIC to play a bigger role in this mortgage mess. Politicians want bold and dramatic action and Bair has a plan to give it to them. Bair has had an … Continue reading

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FDIC Plan Likely To Fail

Mortgage bonds are going to need government support in these times of stress says Ben Bernanke, Federal Reserve chief. There’s also the option of covered bonds. Real estate values are plunging and foreclosures are way up. Irwin Nowick writes: First, … Continue reading

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IndyMac As The Model For A Mortgage Turnaround

ABC News reports that the US Treasury is looking at a new proposal from the FDIC to insure mortgages. Lenders would modify loans and in exchange those loans would be insured. More: FDIC chairwoman Sheila Bair touted the benefits of … Continue reading

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Should Lenders Revise Troubled Mortgages?

The Federal Reserve cut its funds rate (the rate at which it lends to banks) to one percent yesterday. The stock market jumped 200 points today. Oil dropped to $65 a barrel. Good news. Should the FDIC insure mortgages? The … Continue reading

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Building Up The Federal Housing Administration

Here are some options: The FDIC could guarantee home mortgages in exchange for banks giving lower interest rates and adjusting troubled loan deals. Servicers could be paid to change loan terms. Use Fannie Mae/Freddie Mac to reduce foreclosures. Michael Barr … Continue reading

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