National News

FDIC proposes new loan modification process

      Drawing on its experience with IndyMac, the FDIC proposed a sweeping loan modification process that could affect more than 2 million non-GSE problem mortgages nationwide. The proposal, which seeks to spur foreclosure mitigation efforts, could drop mortgage payments down to 31 percent of borrowers’ monthly income. The government would also share up to 50 percent of losses if borrowers re-defaulted after their loans were modified. The loss-share guarantee on re-defaults “may provide the necessary incentive . . .

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