With foreclosures at record numbers and the steady decline in housing prices, the bill would also give the Federal Deposit Insurance Corp the
ability to focus on failing banks. Foreclosures are the main cause of the recession and continue to wreak havoc to an already ailing
economy. The continued efforts are being done in hopes of unclogging the financial system, allowing loans to flow more freely.
Up to now, the efforts have done little to encourage banks to once again resume normal lending.
In addition to the previous legislation, the bill will also feature a safe harbor provision offering to protect those who alter the loans in order to help keep
homeowners from facing foreclosure.
Legislation is also expected to raise the current insured deposit limit to $250,000. Toward the end of 2007, the limit was increased, however, it was due
to reset to one hundred thousand dollars.
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