Imagine this headline “[Banks, Regulators, and Execus] Trying to Keep Borrowers in Homes” rewritten to be about credit cards. Would it be different than what is being proposed by some to save home-owners in over their heads on subprime mortgages?
A high-level group of federal officials, bankers and mortgage industry executives meeting Monday agreed on a goal of keeping deserving borrowers with high-risk mortgages in their homes at a time of rising foreclosures, a key banking regulator said.
Bair organized the unusual seven-hour meeting at FDIC headquarters on the turmoil in the market for so-called subprime mortgages, which are higher-priced home loans for people with tarnished credit or low incomes who are considered greater risks. In recent weeks, the distress has roiled financial markets and stoked anxiety that it could spill over into the broader economy.