The Federal Deposit Insurance Corporation (FDIC) on May 5 announced the creation of a new unit within the FDIC's Office of the Ombudsman specifically designed to assist customers with loans at failed banks. The FDIC's Division of Resolutions and Receiverships (DRR) will continue to have primary responsibility for working with customers of failed banks to address their concerns and transition them to new banking and lending relationships. This new unit will give borrowers an additional venue for having their concerns addressed by the FDIC. The FDIC Office of the Ombudsman has a nationwide presence in each of the agency's six regions and helped resolve more than 1,100 cases in 2008. The FDIC stated that “[a]s the pace of failures increases, additional staffing in the office will help provide service and clear communication between all parties.”
The FDIC has also produced “A Borrower's Guide to an FDIC Insured Bank Failure.” This guide will help inform customers that had loans with failed institutions about what they can expect to occur in the receivership process, including the disposition of loans, workout steps taken on delinquent loans and an explanation of borrower rights.
