The jury is still out on whether the government’s Home Affordable Modification Program has been a success, according to Sheila Bair, chairman of the Federal Deposit Insurance Corp. Speaking at a real estate conference in Washington, Bair said that while it is true that the number of trial and permanent modifications have “lagged behind the program projections,” there also has been a slowdown in the pace of new foreclosures in the second half of the year. She also proposed that securitization was a way to improve mortgage financing.
Click here to read the release from the FDIC.