Deputy Chairman of the U.S. Federal Reserve Elizabeth Duke said that the country will soon set up a special compensation fund for those borrowers who have lost their homes because of abuse in mortgage lending.
Duke has actively supported this idea at a meeting with state prosecutors and the heads of the banking sector. Previously, the big banks were accused in the fact that they used the shortcomings of documents to evict borrowers having problems with payments on housing loans.
"I think that the creation of new fund will impact very positively, if passing is a mechanism to deal with these problems" - said Duke. This fund could be created following the example of a similar fund created for victims of oil spills in the Gulf of Mexico after a crash on the drilling platform to BP. The solution to financial problems of borrowers should not turn into a huge cost to the banks.
Managers of large mortgage companies have promised that the eviction of the borrowers, the current overdue payments on loans will be made only in extreme cases.