The US Federal Deposit Insurance Company is set to work alongside the Treasury Department to improve the situation of foreclosures in the country. However, concrete actions are yet to take place.
Foreclosure crisis has grown more and more excessive that even attempts of the banks, community groups and government to address the problem are showing no signs of success.
The suggestion of Republican Senators Richard Shelby of Alabama and John McCain of Arizona to let go of big financial institutions is seen as a way to reduce the number of foreclosure homes in the country.
Congress has been preparing two foreclosure prevention bills that would be presented to Barack Obama as soon as he starts working as president in the last weeks of January.
Fort Worth foreclosure listings now include homes from Franklin Bank which was shuttered last year. FDIC teamed up with Residential Credit Solutions to sell seized and foreclosed properties.
FDIC has asked the newly formed FSOC to help address and regulate problems regarding mortgage lenders' allegedly improper handling of foreclosure documents. Analysts believe that FSOC could bring about more solutions to the issue.
Top government agencies are getting together to investigate the foreclosures crisis. US banks being probed for faulty foreclosure practices could face fines or criminal action, according to the OCC.
FDIC has required more than 5,000 banks and savings and loans associations that received help from the first $350 billion of the Troubled Asset Relief Program in 2008 to report on how they were able to help foreclosure-troubled borrowers.
Chairman Sheila Bair, the frontrunner of FDIC’s proposal for a mortgage-restructuring program to stop foreclosures is targeted out of office by administration people.
Housing advocates and counselors have been complaining that representatives of IndyMac, now OneWest Bank, are very difficult to work with. When OneWest investors bought the bank, they promised FDIC they will help cut down inventories of foreclosed for sale.
FDIC Chairman Sheila Bair explained at a House Financial Services Committee Hearing her agency’s proposal of preventing foreclosures through federal loan guarantees and loan modifications.
Ebank has become the 17th Georgia bank to fail this year because of foreclosure for sale assets. Of Ebank's $95.6 million loans, $89.7 million was used for residential and commercial real estate loans.
Atlanta foreclosed homes lists will soon include condo units developed with loans from failed Corus Bank. The condo units are expected to be sold off after the FDIC finds a buyer for the repossessed properties.
With no clear solution on how to stop the spread of the foreclosure crisis, banks have finally decided to modify their mortgage loans, an approach that they previously refused to do.
The unabated increase in the number of Georgia foreclosure homes and loan defaults has been blamed for the shutdown of Georgian Bank. The bank closing is the 95th case in the United States for this year.
Bank foreclosure sales by banking firms that acquired failed banks are being addressed by FDIC Chairperson Bair. She has been considering asking lenders to reduce principal payments on troubled loans to help jobless homeowners.
Democratic Members from Congress are urging administration officials to utilize part of the $700 billion federal bailout money for foreclosures mitigation.
Obama’s foreclosure plan will be implemented with the help of several federal agencies, government corporations such as Fannie Mae and Freddie Mac and the mortgage banks.
Precautions taken by the government to address the worsening foreclosure crisis does not seem too promising, and even appears useless, as it is lacking direct support for troubled homeowners.
FDIC Chairman Bair has been working with the Treasury Department and the White House Office of Management and Budget to launch a foreclosure rescue scheme that will help troubled homeowners in a realistic manner.
Many analysts point to the continued growth of foreclosure listings as the reason for the continued economic downturn. Expected results of the federal foreclosure prevention program are not yet being felt in many areas of the country.
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