Modifying loans on a case-by-case basis and fixing rates for limited periods won't avert enough foreclosures."With this type of cooperation from loan servicers, we can save tens of thousands of people from being added to the foreclosure lists. This common-sense approach does not involve a government subsidy or bailout,"

said Governor Schwarzenegger

"We are falling behind the curve, we are way above where we need to be. There are a lot of unnecessary foreclosures going on that can be prevented through more aggressive loan modifications."

FDIC Chairwoman       Sheila Bair's.