FDIC ADMITS SERIOUS TITLE PROBLEM IN TRANSFERS

A separate report from the Congressional Oversight Panel, also being released Tuesday, raises questions about whether improper document transfers could create additional liabilities for the biggest U.S. banks. The consequences could be “severe,” the report said, “if documentation problems prove to be pervasive and, more importantly, throw into doubt the ownership of not only foreclosed properties but also pooled mortgages.”

BEND OVER FDIC LOSS SHARE AGREEMENTS

http://www.scribd.com/doc/42817901/National-Mortgage-News-Bair-Has-Multiple-Housing-Worries

Bair has some concerns about recent foreclosure process problems and reviews due to some loss-sharing arrangements the FDIC is in, even though the agency is not the primary regulator in the matter.

She told the Securities Industry and Financial Markets Association meeting in New York that the matter is a “serious problem” that may go beyond the initial affidavit-related concerns.

Bair, who said she plans to step down from her post when her term ends, said while not all information is in from the file-level reviews major servicers are doing yet, it currently looks like there could be title transfer concerns.

In addition, she said there could be problems with mortgage modifications being consistent with the rules in cases where servicers that participate in the Home Affordable Modification Program are involved.

While the FDIC is not the primary regulator in the matter, Bair said she is suggesting to those that are that the issue be handled in a matter that does not slow the foreclosure process down too much.

“The market does at some point have to clear,” she said.

http://www.scribd.com/doc/42795768/Securitization-Industry-Set-to-Defend-Practices-WSJ

The securitization-industry defense doesn’t address the problem of “robo-signing,” in which employees falsely asserted that they had personally reviewed the details of foreclosure cases.

Still, the report is aimed at countering claims made by critics that the rush to feed demand for securities led banks to cut corners in assigning and tracking ownership of mortgages, just as they did, critics claim, when buying and making mortgage loans.

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