FDIC’s Bair: Subprime Fixes Slow, Defaults Ahead

Friday, Feb. 1, 2008 5:05 p.m. EST

The mortgage industry has been lax on modifying loans for subprime mortgages, says U.S. Federal Deposit Insurance Chairman Sheila Bair..
So lax that new regulation might result, she told the U.S. Senate.

"Unfortunately, at this point, the available information seems to show that foreclosures continue at an unacceptably high level while true loan modifications are lagging,â€