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FHA Commissioner Dave Stevens, speaking at a conference for the loan service of the Mortgage Bankers Association today in Washington DC. We talked a lot on this blog about the lack of consumer confidence in housing, especially in the context of declining home prices. His point, however, is that the loan service is equal to the fault.

Stevens told the conference that you can not underestimate the "reputational challenge" facing the mortgage industry, that the echo boomers "who have to buy new homes, but now choose to rent. This generation heard all sorts of stories about troubled borrowers can send to their banks, mortgage payments that have been seized, Robo-signatories sitting in tiny cubicles pushing papers, or later at JP Morgan Chase Military overload their loans. This is not an attractive market to enter, regardless of the generation that is assigned.

Today, the chairwoman of the FDIC, Sheila Bair has proposed a foreclosure "Complaints Committee" to deal with borrowers who have been unjustly confiscated. She suggested that the model based on BP or 9.11 according to the Commission "and is funded by the technicians. Lasted more like a lead balloon in the room full of banks, mortgage, and the Bair knew.

"Many in the maintenance industry to resist a deal like this, as it would create too much of the immediate financial cost of major repair itself, but it would be shortsighted," said Mike Bair.

There is no doubt that more Americans are turning to rental units in more home ownership, either by necessity or by choice. All you need do is look at building new housing for the Commerce Department figures today. Single-family starts fell to 9 percent the month month, when many families increased by 25 percent. Permits for multifamily buildings, a sign of future construction, rose by over 50 percent. Builders know that the demand is and where it comes.

The national rate of homeownership has declined dramatically since the height of the housing boom, and while the fear of house prices and credit availability are the push factors, mistrust of the mortgage industry is there same with them.

"Remedial not to increase their operational capacity, not enough to treat consumers with adequate trained personnel with the right process to help in difficult times and face a large number of nonperforming loans is happening today," Stevens said.

The banks argue that they have built their ranks, adding hundreds or even thousands of workers respond to calls and help borrowers in trouble, but we have seen the result of a lot of that. untrained employees, lawyers paid additional incentives to adopt entered into the system, and a process of loss mitigation that no matter how "streamlined" now claims to be, is far less.