FDIC Gains Private Partner for Toxic Loans

The Federal Deposit Insurance Corp. has named the first winning bidder under a test of the government's program to back private purchases of toxic mortgage assets and get them off banks' balance sheets.

Fort Worth, Texas-based Residential Credit Solutions Inc. is paying $64.2 million for a 50 percent stake in a new company that will have about $1.3 billion in home mortgages from the failed Franklin Bank.

The FDIC took over Houston-based Franklin Bank in November. Under the test sale to RCS, the new company will issue a note for $727.8 million to the FDIC.

The program is part of the government's public-private partnership to guarantee private investors' purchases of toxic assets to help banks raise new capital, get credit flowing and aid the economic recovery.

[SkirtLifter]

Lynne127,

If you are serious about pursuing this, I highly recommend a digital audio recorder. They cost about $60 and are powerful tools. Record all of your conversations. I think VA is a 'one party state' and you can legally record the conversations without the other parties consent (unless it crosses state lines)

Once you have many recordings, go to your local news outlet and find a young, assertive, female reporter, whose looking to make her mark. Get her on your side.

Then hold these bastard companies' feet to the fire. The shenanigans mortgage holders are performing on their clients are inexcusable.

Please consider getting one of these e.g. Olympus ws-400.

Good Luck!

[Lynne127]

Where is the assistance??? That lady is not the only one! I have a home loan with Bank of America[Countrywide]. I fulfilled the agreement and now it is as if we did not do anything at all to keep the house. It is as if the bank just wants this house. I am going to call the local TV station to let them know. No one will talk with me and each time I talk to someone different, it is a different amount that I need to restructure the loan and put the rearege at the end of the loan[as what was supposedly to be done after payment in May 2009]. Bank of America/Countrywide instructed me to talk to the VA representative and the VA representative told me to talk to the lender. I called the local democrat office to complain, and they were the most willing to give assistance. I was given the refinancing/modification number [888-995-4673] talked with Green Path and Green Path attempted to talk to the lender with me and the lender disconnected the call. I had no idea that something was wrong after completing the workout that began May 2008 and ended May 2009. I kept making payments via Western Union, until I received a letter from Western Union concerning the refusal of the funds that were sent. That is correct; Bank of American/Countrywide [800-669-6607] refused a payment to my account. Bank of America/Countrywide keeps saying that our loan is further behind and further behind; [because they do not accept any kind of payment to keep moving forward to get a work out from Bank of America/Countrywide that will be recognized by Bank of America and not get lost in the transition]. Now looking at foreclosure in the face it is becoming more and more likely filing for bankruptcy to keep our house is becoming the only options. There is no recognition that we attempted to anything; to show that we can make the payment and would like to keep this residence. It is as if Bank of America/Countrywide Wants the loan to FAIL so the bank can get more money from federal funds and Bank of America/Countrywide does not truly want to help people who just want to have the loan on a bi-weekly auto withdraw from their bank account that has auto deposit of two paychecks! There is nowhere and no one to reason with a person from Bank of America/Countrywide concerning the previous workout; to get a straight answer from Bank of America/Countrywide; or to obtain additional financial restructuring the loan. Green Path was very helpful in personally assisting in creating a budge and reminding me how important the proper handling of funds is.

[roach9703]

This happened to me on a tax payment. Fortunately, I was able to work out of this. Did you contact your State Attorney General? You may have fraud complaint here. Good Luck