Federal Deposit Insurance Corporation (FDIC) Chairman Sheila C. Bair has called for more modifications and fewer foreclosures during her Wednesday, Jan. 19 presentation before the Summit on Residential Mortgage Servicing for the 21st Century, sponsored by the Mortgage Bankers Association (MBA) in Washington, D.C.
"The bottom line is that we need more modifications and fewer foreclosures. When foreclosure is unavoidable, we need it to be done with all fairness to the borrower and in accordance with the law," said Bair. "Only by committing to these principles can we begin to move past the foreclosure crisis and rebuild confidence in our housing and mortgage markets."
MBA's Council on Residential Mortgage Servicing for the 21st Century (Servicing21 Council) organized the Summit to explore the issues that have shaken the mortgage industry and challenged the system in which mortgages are repaid and managed. The Summit on Residential Mortgage Servicing for the 21st Century assembled industry professionals, economists, academics, consumer groups and policymakers in a forum to debate the way mortgage loan administration and servicing should be performed in the future.
"In order to remedy failures endemic to the largest mortgage servicers, I hope to see enforceable requirements that will significantly improve opportunities for homeowners to avoid foreclosure," commented Bair. "The first such requirement is that servicers must provide a single point of contact to assist troubled borrowers throughout the loss-mitigation and foreclosure process. In order to prevent costly miscommunication, this person - and it does need to be a real person - must be well trained and adequately compensated. This person must have access to all relevant information and be authorized to put a hold on any foreclosure proceeding while loss-mitigation efforts remain ongoing."
Click here to view a full copy of Chairman Bair's prepared comments for presentation at the Summit on Residential Mortgage Servicing for the 21st Century.
For more information, visit www.fdic.gov.