FDIC’s Bair: Lending Industry Should Compensate Consumers

The mortgage industry should compensate consumers harmed by shoddy foreclosure practices and is in need of far-reaching reforms to ensure that homeowners get better treatment in the future, Sheila Bair, chairman of the Federal Deposit Insurance Corp said Wednesday. Bair called for a “foreclosure claims commission” to handle complaints from homeowners who say they have lost their homes through errors made by their mortgage companies. The commission, she said, could distribute claims to affected borrowers–much like Gulf Coast oil spill fund–and would be paid for by the mortgage industry. – WSJ