The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Advanced Search What's New · What's Next · Site Map · A-Z Index · FAQs · Careers About the Fed News & Events Testimony and Speeches Press Releases Banking Information & Regulation Monetary Policy Payment Systems Economic Research & Data Consumer Information Community Development Reporting Forms Publications Home > News & Events > 2007 Banking and Consumer Regulatory Policy Joint Press Release Print Conferences Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of the Comptroller of the Currency Office of Thrift Supervision National Credit Union Administration Conference of State Bank Supervisors For immediate release September 4, 2007 Federal Financial Regulatory Agencies and CSBS Issue Statement on Loss Mitigation Strategies for Servicers of Residential Mortgages The federal financial regulatory agencies and the Conference of State Bank Supervisors (CSBS) on Tuesday issued a statement encouraging federally regulated financial institutions and state-supervised entities that service securitized residential mortgages to review to determine the full extent of their authority under pooling and servicing agreements to identify borrowers at risk of default and pursue appropriate loss mitigation strategies designed to preserve homeownership. Significant numbers of hybrid adjustable-rate mortgages will reset throughout the remainder of this year and next. Many subprime and other mortgage loans have been transferred into securitization trusts that are governed by pooling and servicing agreements. These agreements may allow servicers to contact borrowers at risk of default, assess whether default is reasonably foreseeable, and, if so, apply loss mitigation strategies designed to achieve sustainable mortgage obligations. Servicers may have the flexibility to contact borrowers in advance of loan resets. Appropriate loss mitigation strategies may include, for example, loan modifications, deferral of payments, or a reduction of principal. In addition, institutions should consider referring appropriate borrowers to qualified homeownership counseling services that may be able to work with all parties to avoid unnecessary foreclosures. The statement, which was issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, and CSBS, is attached. Attachment (21 KB PDF) Media Contacts: Federal Reserve Board Susan Stawick 202-452-2955 FDIC Andrew Gray 202-898-7192 OCC Kevin Mukri 202-874-5770 OTS William Ruberry 202-906-6677 NCUA John McKechnie 703-518-6331 CSBS Mike Stevens 202-728-5701 2007 Banking and Consumer Regulatory Policy Last update: September 4, 2007 Home | News & Events Accessibility Contact us External Linking Policy FOIA PDF Reader