IndyMac Plan Could be Model for Recovery

The FDIC seems to be doing good by the customers of my old company:

Under the FDIC's orders, about 4,000 IndyMac borrowers have been given more affordable mortgages so far. By this weekend, the bank expects to have sent out more than 15,000 modification offers to borrowers, who are saving $430 a month on average.

IndyMac's efforts, which are designed to save the FDIC money by curbing losses on foreclosed homes, are being closely watched nationwide. In fact, Bank of America Corp. is taking a similar approach with newly acquired Countrywide Financial Corp. as part of an $8.4 billion, 12-state legal settlement reached this month.

And now some Congressional Democrats and state officials say the FDIC's approach should be replicated as the Treasury Department buys billions in troubled mortgage debt as part of a $700 billion financial industry bailout.

"The country is in crisis," said Iowa Attorney General Tom Miller. "This is something that everybody should do."