On November 14, 2008 FDIC announced a loan modification program that attempts to keep people in their homes at lower mortgage payments by extending the terms of loans and lowering interest rates. They appear to be relying heavily on BPOs.

The Appraiser Coalition has written a response stressing why this is a misguided procedure which violates the law in several states plus federal bank regulations.

Click here for the letter response to FDIC.