The Federal Deposit Insurance Corp. is in the process of mailing 15,000 loan modification proposals to mortgage customers of IndyMac Bank of California.

The effort is part of the agency's pilot program to help 40,000 mortgagors who are delinquent on their IndyMac home loans.

FDIC chairman Sheila Bair testified before a Senate Committee yesterday that, "Specifically, the government could establish standards for loan modifications and provide guarantees for loans meeting those standards." FDIC has been operating IndyMac as a conservatorship since taking control of the thrift in July. It is in the process of taking bids on the lender/servicer.

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