FDIC loan mod plan flawed

Negative equity, repayment among key worries

Big plans for business in 2018?
Give yourself the tools to own the new year at Connect SF, July 17-20, 2018

"Do you have an opinion about the FDIC plan to jumpstart loan modifications as a way to reduce foreclosures?"

Yes, I admire FDIC, under the leadership of Sheila Bair, for taking the lead in attacking the root source of the financial crisis: the vicious cycle of declining home prices and foreclosures. I share FDIC’s view that the way to break that cycle is to modify mortgage contracts in ways that enable borrowers in distress to return to good standing and stay there — AND to do enough of them to make a difference.