- - Wednesday, January 19, 2011

FDIC

Bair: Foreclosure commission needed

The mortgage-servicing industry should fund a new commission to compensate homeowners who may have wrongly been kicked out of their homes, a top U.S. banking regulator said Wednesday.

Federal Deposit Insurance Corp. Chairman Sheila Bair said this claims commission could be modeled on those created to compensate victims of the BP oil spill and the Sept. 11, 2001, terrorist attacks. She said the size of such a claims fund would have to be negotiated.

The biggest U.S. mortgage servicers, including Bank of America, Wells Fargo and JPMorgan Chase & Co., have been accused of taking possibly illegal shortcuts in some foreclosure proceedings, such as using “robo-signers” to sign hundreds of unread documents a day and advancing foreclosures without proof they held the mortgages.

The allegations have been a reputational and financial hit for the companies. They are facing repurchase demands from investors in mortgage-backed securities and multiple probes from bank regulators and all 50 state attorneys general.

The attorneys general have already been negotiating with the big banks to set up such a nationwide fund for wrongful foreclosures.

ALABAMA

Bentley apologizes for recent remarks

MONTGOMERY | Alabama Gov. Robert Bentley is apologizing for his remarks about only Christians being his brothers and sisters.

Mr. Bentley said Wednesday he didn’t mean to insult anyone with the comments he made at a church in Montgomery after his inaugural address on Monday. He says no one should hate anyone else because of color or religion.

Mr. Bentley spoke with reporters after meeting with several members of Alabama’s Jewish community and other faith leaders at his Capitol office.

AFL-CIO

Trumka: Spend more to spur growth

Politicians are too obsessed with budget cuts when they actually should spend more on public works projects that would create jobs, the head of the nation’s largest union federation said Wednesday.

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