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Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

Winter 2007/2008

Help for Mortgage Borrowers: An Update

In our Fall 2007 issue, we reported that the FDIC and other government agencies were encouraging mortgage lenders and their loan servicing companies to modify the terms of unaffordable loans to keep people from defaulting and losing their homes when interest rates reset significantly higher. Now here's an update.

On December 6, 2007, the U.S. Treasury Department announced that a number of lenders and loan servicers had agreed to freeze interest rates for five years for certain homeowners who could lose their homes if their payments reset to a higher interest rate. FDIC Chairman Sheila C. Bair has publicly supported this plan, which will streamline the loan-modification process and free up resources to help other troubled borrowers.

Homeowners having difficulty paying their mortgage should contact their loan servicer to find out if they qualify for loan modification. Those who do not qualify may want to ask about other plans or options for revising or renegotiating their loans.

Borrowers may first wish to seek help from a trained homeownership counselor. To find a reputable counselor, contact the Homeowner's HOPE Hotline at the Homeownership Preservation Foundation (1-888-995-4673 or www.995hope.org) or the U.S. Department of Housing and Urban Development for a referral to a HUD-approved homeownership counseling agency (1-800-569-4287 or www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm).

If you are having difficulty reaching your servicer, you can call the FDIC Call Center at 1-877-ASK-FDIC (1-877-275-3342). Although you will need to discuss your particular situation with your servicer, the FDIC can help you contact your servicer or the appropriate state or federal regulator.

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Last Updated 2/12/2008