FDIC Proposes Loss Sharing Plan to Promote Mortgage Modifications
The FDIC's proposed mortgage modification plan targets both home owners and mortgage servicers. Mortgage servicers would be paid $1,000 per modified loan and, if the modified loan later defaults, the FDIC would cover up to 50% of the losses. The modification plan only applies to mortgages for owner-occupied properties, but those home owners could have their mortgage payments modified to 31% of their monthly income. Click here for all the details of the FDIC's new proposal.
