FDIC's Bair sounds alarm on foreclosure litigation

[dkf]

ARLINGTON, Virginia (Reuters) - Litigation arising from foreclosure paperwork problems could be "very damaging" to the housing market, a top U.S. banking regulator said on Monday.

Federal Deposit Insurance Corp Chairman Sheila Bair said she did not believe legislation would be needed to address concerns over whether the paperwork was properly done so long as investigations show the issue was mostly "procedural."

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Bair argued it is important to move foreclosures quickly because until they have been cleared out of the system, the housing market will continue to struggle.

She said the volume of foreclosures requires a "global solution" that involves all interested parties.

Those parties often include servicers, borrowers, lenders, second-lien holders and investors in securities backed by troubled mortgages. Foreclosures and modifications can be held up when the interested parties do not reach agreement on how to handle a delinquent mortgage.

Bair said one part of a global solution could be extending legal protection, providing a "safe harbor," to foreclosure proceedings if the property is vacant or if the servicer offered a meaningful payment reduction, such as 25 percent, and the borrowers could still not perform on the loan.

http://us.mobile.reuters.com/article/idUSTRE69O3YP20101025?ca=rdt

[Angry Dragon]

1. NO ........ fraud needs to be investigated before anything else

It is the government's job to protect the people

[dkf]

2. I wonder if Elizabeth Warren can do anything.

It looks like Shiela Bair isn't expecting much.

[Owl]

3. Agreed. Bair's supposed logic is total BS. This crap needs to see the light of day.

All of it.

[sabrina 1]

4. So, she's for corruption so long as it is profitable.

Why is this becoming the norm for U.S. officials? This, 'let's ignore the crimes because really, prosecuting criminals might interfere with profits'.

What a despicable statement from her.

Bair argued it is important to move foreclosures quickly because until they have been cleared out of the system, the housing market will continue to struggle.

'Foreclosures' means homes, families. But she says, 'let's clear them out of the system' so we don't interfere with the housing 'market'. I thought the market could take care of itself???

Contrast this cold, cruel attitude towards the American people not rich enough to be considered important in this society, to that of Iceland.

In Iceland, on a smaller scale obviously, but just as devastating, these geniuses who wrecked this economy and theirs, ARE being held accountable.

The banks have been nationalized. The leaders are being prosecuted.

But most importantly, UNLIKE Ms. Blair, the people of Iceland are demanding that ALL DEBT be forgiven.

They want all those in foreclosure to be forgiven their debt by the crooked banks who caused the problem and left in their homes.

In Iceland, PEOPLE matter. They understand that people fell behind on their mortgage payments because of the corruption at the top. The loss of jobs eg.

This woman should be fired she is a disgraceful example of a human being.

This fraud was massive, and if she thinks that Congress can sweep it all under the rug or they can make these mortgages right with MORE fake documents, I hope, sincerely hope, she will be sadly disappointed.

They are heartless, robotic, excuses for human beings. Disgusting!

[Angry Dragon]

5. She needs to be fired Now

[DCKit]

6. Well said Sabrina. I think you speak for quite a few here. n/t

[dkf]

7. I would say she has a conflict of interest in that she would need the FDIC to cover any bank that

Failed due to this. The amount they are predicting they will need is small potatoes compared to one large bank failure.

[w4rma]

8. Bair had better not be an Obama appointee. Her corrupt butt needs to be sacked. (nt)

[depakid]

9. Nope- a Bush appointee often lauded by Democrats

I think she's basically telegraphing what's coming from Congress and the administration, so I'm so sure how much we can fault her personally for that at this point.

http://en.wikipedia.org/wiki/Sheila_Bair