Federal Deposit Insurance Corp. Chairman Sheila Bair warned Wednesday that regulators must add new servicing standards to a pending risk retention rule to ensure there is not a double dip in the U.S. housing market.

"Because effective servicing of problem loans is so important to preserving value for investors and preventing systemic instability, it is imperative that the Dodd-Frank risk-retention rules also create financial incentives that promote effective loan servicing," Bair said in a speech to the Mortgage Bankers Association.

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