FDIC Chairman Sheila Bair – a recognized champion of homeownership preservation whose loan modification model has set the standard for the industry – is throwing her support behind the administration’s Home Affordable Modification Program (HAMP).

She also points out that the nation’s mortgage problem has evolved, and it’s underwater mortgages that are now the biggest threat. Bair says the FDIC is actively looking at principal write-downs as one way to encourage borrowers to stick with their mortgages and help mortgage owners avoid costly foreclosures.
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