FDIC MAY HAVE STRICTER SERVICING RULES IN THE WORKS FOR BANKS

Reports have surfaced that the FDIC is contemplating stricter requirements that would force banks to disclose what potential ramifications a loan modification on a first lien they service would have on an underlying lien. Industry analysts have speculated that servicers may be reluctant to modify a primary loan because the bank that services the loan also holds the second lien. Such an arrangement could be considered a conflict of interest and prompts some to wonder if investors would be swayed if they knew of the arrangement beforehand.

http://www.dsnews.com/articles/fdic-may-have-stricter-servicing-rules-in-works-for-banks-2011-01-11