FDIC Summit Looks to Help Subprime Borrowers

The Federal Deposit Insurance Corp and other regulators are looking for ways to help delinquent subprime borrowers avoid foreclosure and have invited Wall Street bond market officials to a forum on April 16 to help."We are inviting the participants in the subprime securitization market to join us in trying to come up with some constructive ideas," FDIC general counsel Sara Kelsey said. In taking an enforcement action against Fremont General Corp., FDIC directed the California subprime lender to develop a plan to work with its delinquent borrowers. "The goal is to restructure the loans so that the borrowers would be able to repay them," Ms. Kelsey said at a Women in Housing and Finance meeting.

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