The banking agencies have been focused for some time on the problems related to modifying mortgage loans and the large number of consumer complaints by homeowners seeking loan modifications. It has now become evident that significant parts of the servicing industry also failed to handle foreclosures properly.
It is important to note that the ability and willingness of the central bank to provide liquidity may be useful in reducing market  BIS Review 115/2007  1  uncertainty and bolstering investor confidence, even if the actual amount of liquidity provided turns out to be rather modest.