The foreclosure crisis has frustrated and puzzled everybody, especially the homeowners who wonder why the banks often appear to be acting against their own best interest in pushing foreclosure when a settlement with the homeowner would be cheaper and faster.
Well, the head of the FDIC — Independence Kan.’s, own Sheila Bair — said the problem is, as always, a matter of screwed up incentives. Here’s her recommendation on how to fix it.