Work with default risks, Fed urges

By The Associated Press

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WASHINGTON — The Federal Reserve and other banking regulators issued special guidance Tuesday urging loan service companies to work with borrowers in danger of defaulting on their home mortgages.

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The new guidelines are not mandatory, but the regulators expressed the hope that companies that collect payments on mortgages would heed the advice.

Sheila Bair, chairman of the Federal Deposit Insurance Corp., said that mortgage collectors have the authority under existing accounting and tax rules to help deserving borrowers.

For more information see today's Arkansas Democrat-Gazette. Subscribers can read the story here on ArkansasOnline.

This article was published Wednesday, September 5, 2007.

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Work with default risks, Fed urges

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