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The FDIC is reducing mortgage payments and interest rates for delinquent borrowers at the federally-controlled IndyMac Bank. FDIC spokesperson Shelia Bair said that the FDIC hopes to keep nearly 30,000 delinquent borrowers in their home with the changes.
Must be nice though. If you’re in trouble with your mortgage I’m sure you’re rooting for an FDIC take-over. They seem to be far more willing to work with delinquent borrowers than traditional, private servicing companies.
More from Bloomberg:
The Federal Deposit Insurance Corp. may lower mortgage interest rates for delinquent IndyMac Federal Bank FSB borrowers a month after suspending foreclosures on $15 billion in loans it’s managing as successor to a failed lender.
The FDIC, which is running IndyMac while seeking a buyer, may also extend repayment terms or base payments on reduced principal to help borrowers, FDIC Chairman Sheila Bair said today in a conference call with reporters. The program might serve as a “catalyst to promote more loan modifications for troubled borrowers throughout the country,” Bair said.
“We hope to keep tens of thousands of troubled borrowers in their homes and avoid the negative consequences that foreclosures can have on the broader economy,” she said.
Bair has led regulators in pressing mortgage-servicing companies to modify loans amid rising foreclosures in the worst housing slump since the 1930s. IndyMac Federal has about 740,000 mortgages that it owns or services for other companies, the FDIC said. The bank services $184 billion in mortgage loans.
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