FDIC's Blair: Millions of Foreclosures Could be "Infected&...

The issues present in the many of the mortgages that are part of today's mortgage crisis have been much debated. It appears that there is much more yet to be debated or learned. In order to help resolve the mortgage crisis, many have urged mortgage servicers and the state Attorney Generals to reach a "global settlement." Among those is Chairman of the FDIC, Sheila C. Bair who testified on May 12, 2011 before the Senate Committee on Banking, Housing and Urban Affairs.

Chairman Bair states that one reason that she has "urged the servicers and the state Attorneys General to reach a global settlement" was that the

"Flawed mortgage banking processes have potentially infected millions of foreclosures, [emphasis added] and the damages to be assessed against these operations could be significant and take years to materialize. The extent of the loss cannot be determined until there is a comprehensive review of the loan files and documentation of the process dealing with problem loans."

Chairman Bair also stated that it is important for the mortgage lenders to "remedy the foreclosure backlog, which has become the single largest impediment to the recovery of the U.S. housing markets."

Jordan E. Bublick, Miami-Dade, Broward, and Palm Beach, Florida, Attorney at Law, Practice Limited to Bankruptcy Law, Member of the Florida Bar since 1983