WASHINGTON — House Financial Services Committee Chairman BarneyFrank (D-Mass.) and Housing and Community Opportunity SubcommitteeChairwoman Maxine Waters (D-Calif.) have asked President Bush toappoint FDIC Chairwoman Sheila Bair to supervise a government-wideeffort to reduce foreclosures.

The politicians said recent actions by the government–thetakeover of Fannie Mae and Freddie Mac, the Oct. 1 implementationof the Hope for Homeowners program and language in the EmergencyEconomic Stability Act–allows the feds to have a major impact instabilizing the housing market and preventing foreclosures.

Frank and Waters said in the letter they sent to Bush that theywere impressed with Bair's work on foreclosure mitigation and thatgiving one official clear responsibility on the subject wouldimprove the effectiveness of the federal government's efforts.

When the FDIC took over IndyMac, the agency suspended mostforeclosure actions so it could evaluate the portfolio of 742,000loans that it inherited. The agency modified 40,000 of the 60,000delinquent loans serviced by IndyMac through interest ratereductions, extended amortizations and forbearances. Borrowers'monthly payments were cut by more than $430.