FDIC: Work Together

FDIC Chairman Sheila Barr: “More and more consumers with subprime and hybrid mortgage products are facing the very real prospect of losing their homes through foreclosure as their payments reset and become unaffordable. It is vital that mortgage servicers work proactively with borrowers facing much higher payments as their interest rates reset.”

The FDIC’s attitude is correct. Lenders should compromise. They should relent. Simply foreclosing is futile.