FDIC Statement on Reporting of Securitized Subprime
Adjustable Rate Residential Mortgages
The Federal Deposit Insurance Corporation (FDIC) strongly encourages state nonmember institution mortgage servicers to utilize the HOPE NOW 1 alliance's loan modification reporting standards for subprime adjustable rate residential mortgages. This standard reporting format will help investors in securitization trusts, including financial institutions, monitor foreclosure prevention efforts related to subprime mortgage loans. Consistent loan modification reporting will foster transparency in the securitization market and provide standardized data across the mortgage industry. The FDIC also encourages state nonmember institution mortgage servicers to be responsive to other ongoing data and information requests designed to track loss mitigation efforts, including the State Foreclosure Prevention Working Group.2
The FDIC supports the HOPE NOW alliance, and believes that long-term sustainable loss mitigation techniques that preserve homeownership are generally in the best interest of borrowers, servicers, and investors because such strategies are typically less costly than foreclosure, particularly when applied before default.
The contact information for reporting is HOPE NOW - Mr. Trey Barnes, McDash Analytics, email@example.com, or (904) 285-6220.
||Sandra L. Thompson
Division of Supervision and Consumer Protection
1 HOPE NOW is an alliance between counselors, mortgage market participants and mortgage servicers to create a unified, coordinated plan to reach and help as many homeowners as possible. The Department of the Treasury and the Department of Housing and Urban Development encouraged the formation of this alliance. HOPE NOW, and its latest report on loan modification activity, is on the web at www.hopenow.com.
2 The State Foreclosure Working Group was formed in the summer of 2007 by the offices of 37 state attorneys general and several state banking regulators to encourage solutions to the growing foreclosure crisis. The groups latest report on subprime mortgage servicing is available at www.csbs.org.