FDIC Pilots Legacy Loan Sale

deral Deposit Insurance Corp. (FDIC) will launch a test sale of troubled assets that is designed to ‘help guide and build the foundation’ of the FDIC and Treasury's [link=http://www.mortgageorb.com/e107_plugins/content/content.php?content.3208][u]legacy loans program[/u][/link]. FDIC Chair Sheila Bair says the regulator has received positive interest from the institutions contacted to participate in the pilot. The FDIC hopes to have the first sales package available to investors in June, she adds. The legacy loan program is one-half of the government's public-private investment plan for tackling toxic assets. The plan also features a legacy securities program. ‘In the near term, we will be issuing the necessary requests for proposal for the various contracts that will be needed to complete this work," Bair says. "In addition to testing the mechanics, this pilot program will allow for public observation and input – consistent with the FDIC's commitment to openness and transparency throughout this process.’ SOURC

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