FDIC Consumer News Pub Has Credit Card and Mortgage Change Explanations.

PDF of latest FDIC Consumer News publication is HERE.

It includes information about credit card and mortgage regulatory changes, along with explanation of varied implementation dates. (Explanation of Mortgage changes begins on page 3).

Originally created and posted on the Oregon Housing Blog.

FDIC Indy Mac Loan Modification Redefault Rate Better than Others?

Housing Wire story HERE says redefault rate for modified FDIC Indy Mac loans was 15.6% vs much higher rates reported by other loan modification programs.

(Caveat: I couldn't find any relevant report from FDIC website that provided details sufficient to see if this is an "apples to apples" comparison).

Oregon Banking Profile from FDIC.

Through 2008, 1 pager is available HERE.

FDIC Loan Modifications: Almost Half Had Life of Loan Reductions >10%; But 1/4 Were Not Fully Amortizing.

I extracted FDIC IndyMac reported loan modification data from recent Congressional Oversight Panel report I previously posted about HERE.

The table I constructed HERE shows the results of more than 7,400 FDIC loan modifications as of Dec. 31, 2008. As the table shows:

• 94% of Loan Mods Had a Lower Payment for Life of Loan.
• 45% Had Payments Reduced by 10% or More for the Life of the Loan.
• Another 24% Had Payments Reduced by 10% or More for first 5 Years.
• 24% Were NOT Fully Amortizing (likely with balloon payment).

Note: A later chart indicates in the source document (p.186) indicates that 5,440 (73%) of the loan modifications had an interest rate reduction.

Details and Tools for Understanding FDIC Loan Modification Program.

While there has been much general information discussed about the FDIC loan modification process, I have found a link to some important new information posted by FDIC HERE.

The New FDIC Mod in a Box Includes Net Present Value Excel Spreadsheet.
Much more detail is found in the "Mod in a Box" FDIC link HERE. Perhaps MOST importantly, FDIC has included an Excel spreadsheet HERE which allows a comparison of net present value of a loan modification with costs of a mortgage foreclosure. This is the first tool from any agency or lender that I have seen that allows that comparison to be made.

Kudos to FDIC leadership and staff for the transparency that these materials provide.

(I would next like to see a side by side comparison of the various mortgage modification proposals that have been announced to date from Bank of America, Wells Fargo, FHFA, FDIC HUD, etc.There appears to be significant variation on qualifying ratios, whether interest rate adjustment is permanent or temporary and other important differences).