by Calculated Risk on 11/01/2008 05:00:00 AM

Back in August, Tanta wrote: FDIC Mod Plan: Welcome to the Real World

I'm going to go out on a limb here and suggest that the FDIC's plan for modifying IndyMac loans is, overall, a great thing. I am glad it is happening and I truly look forward to snickering over the results.

And snicker she did just last week: IndyMac-FDIC Mortgage Modification Plan: Still in the Real World

The WSJ has another update: FDIC Plan Tests Limits of Leniency

The new entity, called IndyMac Federal Bank, has become a laboratory test of whether the FDIC's program can keep people in their homes. While it has already seen some success, the agency has also run into obstacles familiar to private lenders and loan servicers. The upshot: there are no easy solutions to the foreclosure crisis.
...
The agency found plenty of bad loans to work with. IndyMac's specialty was Alt-A mortgages, a category that frequently includes loans made with little or no documentation and exaggerated borrower incomes.
...
[T]he FDIC has sent letters to ... 19,000 borrowers for whom it had no recent financial information. It asked them to get in touch with IndyMac and provide financial information to determine if they qualify for a fast-track modification. So far, just 10% have responded, less than what the FDIC would like to see.

Is anyone other than Sheila Bair surprised that so few borrowers responded? These were called 'liars loans' for a reason!

P.S. Tanta is home and recovering from her treatment this week. Hopefully she will feel up to posting next week.