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FDIC Plan Tests Strategies for Keeping People in Homes

Systematic reworking faces typical hurdles

By Matt Cantor, Newser Staff

Posted Nov 1, 2008 6:48 AM CDT

(Newser) – The first large-scale experiment in how to keep struggling borrowers in their homes is being run by the FDIC at seized mortgage lender IndyMac, the Wall Street Journal reports, and the results are mixed. Of some 65,000 borrowers with “seriously delinquent” mortgages, about... Read full story »

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IndyMac • FDIC • mortgage lender • refinanced mortgages • subprime crisis • mortgage delinquency

More Newser Stories

Wreck of IndyMac Sold for $13.9B

Soros, Dell among the players in FDIC's damaged-goods sale

(NEWSER) - A team of high-profile investors has bought the remains of failed bank IndyMac from the FDIC for $13.9 billion, the Wall Street Journal reports. The investors, including George Soros and computer tycoon Michael Dell, have agreed to share the losses from IndyMac's portfolio of troubled mortgages in a deal expected to cost the FDIC around $9 billion. More»

Failed FDIC-Run Bank Added Fuel to Subprime Fire

Feds seized Ill.-based Superior in 2001, but it continued to write, sell off bad loans

(NEWSER) - An Illinois bank seized by regulators in 2001 continued to write risky subprime mortgages for months after it was put under the day-to-day supervision of the Federal Deposit Insurance Corporation, the Wall Street Journal reports. Many of the loans—some with interest rates above 12%—have been foreclosed; a Texas bank that bought a portfolio of the loans is suing the government. More»

FDIC Hunts for IndyMac Buyer

Feds want to see it as a whole; see more small banks failing in future

(NEWSER) - The Federal Deposit Insurance Corporation is looking to sell recently capsized IndyMac as a whole to one healthy bank, an executive told Reuters today. The FDIC took over IndyMac on Friday after nervous customers withdrew more than $1.3B in 11 days. "I don't expect there will be large bank failures," COO John Bovenzi said. "There will be small bank failures." More»

Feds Seize Failed IndyMac Bank

Senator's comments led to takeover, regulator says

(NEWSER) - As mortgage lenders Freddie Mac and Fannie Mae crowded the headlines today, Washington snatched up IndyMac Bank in the second-largest US bank failure in history, the Wall Street Journal reports. The Pasadena, Calif. savings and loan, which owns about $32 billion in assets, saw stocks fall from $45 last year to 28 cents this week as mortgage defaults piled up. It will reopen Monday under federal supervision. More»

Lenders Turning Blind Eye to Overdue Payments

Overwhelmed banks taking much longer to foreclose on homes

(NEWSER) - With foreclosures skyrocketing, overwhelmed mortgage lenders are turning a blind eye to homeowners who haven’t paid up, letting them live in their houses despite delinquency, Bloomberg reports. The 3.6% of borrowers at least 90 days behind is almost twice the percentage foreclosed upon. Lenders’ delays are skewing foreclosure records and means even more homes could soon clog a flooded market. More»

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FDIC Plan Tests Strategies for Keeping People in Homes

Systematic reworking faces typical hurdles

IndyMac • FDIC • mortgage lender • refinanced mortgages • subprime crisis • mortgage delinquency

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More Newser Stories

Wreck of IndyMac Sold for $13.9B

Soros, Dell among the players in FDIC's damaged-goods sale

Failed FDIC-Run Bank Added Fuel to Subprime Fire

Feds seized Ill.-based Superior in 2001, but it continued to write, sell off bad loans

FDIC Hunts for IndyMac Buyer

Feds want to see it as a whole; see more small banks failing in future

Feds Seize Failed IndyMac Bank

Senator's comments led to takeover, regulator says

Lenders Turning Blind Eye to Overdue Payments

Overwhelmed banks taking much longer to foreclose on homes

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