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"The median monthly payment reduction for borrowers enrolled in
the (HAMP) program is $522" - DSnews.com

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Shelia Bair Says Lenders Should Modify Home Loans


The Chairman of the Federal Deposit Insurance Corporation Shelia Bair stated at the Consumer Federation of America conference that lenders needs to determine if borrowers qualify for a loan modification before beginning the  foreclosure process.  Blair went on to say that the lenders need to try and modify the homeowner loan in a timely manner. Blair continued to state that there is a misconception about loan modifications. Many people, including lenders believe those homeowners need to be delinquent to receive a loan modification. This is a false impression with loan modifications and Blair believes that this is a "perverse incentive" for lenders as well.