FDIC Proposes Guaranty Program for Modified Mortgages, But Can’t Get Treasury to Pay for It
November 20, 2008
The Federal Deposit Insurance Corp. this week detailed a loss-sharing proposal for modified home mortgages that would cost an estimated $24.4 billion, but the agency hasn’t convinced Treasury it should pay for the program with money from the Troubled Assets Relief Program. Based on its experience with a mass-modification program for IndyMac mortgages, the FDIC estimates...