WASHINGTON — House Financial Services Committee Chairman Barney Frank (D-Mass.) and Housing and Community Opportunity Subcommittee Chairwoman Maxine Waters (D-Calif.) have asked President Bush to appoint FDIC Chairwoman Sheila Bair to supervise a government-wide effort to reduce foreclosures.

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

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

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