Sheila Bair recently proposed to reduce foreclosures by 1.5 million. In addition, the loan modification program that she introduced before is also getting some attention from the Obama administration, wherein it is stated that under the plan, participating lenders would be rewarded by sharing the cost of defaults on modified loans with the FDIC. Despite criticisms she received about the FDIC’s loan modification program, she remains relentless in speaking out what she thinks is right. And that is to save homeowners from undergoing foreclosures. Many people will benefit from this program. First, the homeowners, then the lenders and finally, companies that sell loan modification leads.

Another newsworthy material to be attentive about is the plan to create a “bad bank” that would buy out toxic assets to infuse more capital to banks and make them start to lend again. Financial institutions have become increasingly reluctant to lend money that homeowners and businesses depend highly upon to keep the economy stable. Lending money to homeowners and businesses will fuel the economy by purchasing merchandise and services and providing jobs and income to whom they bought the products and services.