Sheila Bair, Federal Deposit Insurance Corp chair, called for a new commission that would compensate home owners who have lost their homes to foreclosure because of mistakes lenders made.
She suggested the claim's commission be modeled after ones created to compensate victims of the BP oil spill and the Sept. 11, 2001, terrorist attacks.
Her plea for a commission is to address accusations in recent months that banks have taken illegal shortcuts in foreclosure proceedings and robo-signing hundreds of unread foreclosure documents a day.
Every time servicers have delayed needed changes to minimize their short-term costs, they have seen a deepening of the crisis that has cost them - and the rest of us - even more, Bair said at a Mortgage Bankers Association event.
Source: FDIC's Blair Calls for Foreclosure Claims Commission, Reuters News (Jan. 19, 2011)