Wanted: Default Relief.

Washington -- Rising subprime foreclosures are forcing lawmakers and regulators to look for ways to help delinquent subprime borrowers avoid foreclosure and they are turning to industry experts and lenders for answers.

The Federal Deposit Insurance Corp. is hosting an interagency forum on April 16 to meet privately with servicers, lenders, lawyers and investment bankers to solicit their advice.

"The FDIC is committed to finding solutions for borrowers already trapped in mortgages they cannot afford," FDIC chairman Sheila Bair said in telling a congressional panel about the forum.

She said the forum is designed to develop alternatives to foreclosures and strategies to implement those alternatives. "We look forward to comprehensive discussions and creative approaches at this meeting."

Meanwhile, Senate Banking Committee chairman Chris Dodd, D-Conn., is planning to hold a summit to address what he calls the "subprime crisis" and he is expected to put pressure on securitizers to do more to prevent foreclosures.

The presidential candidate blames predatory and irresponsible lending practices for rising defaults and he wants to provide relief for homeowners facing foreclosure. Senate Democrats have been considering a rescue fund to provide temporary assistance. But now it looks like the committee chairman is looking for a private sector solution.

"The solution to this problem may not be legislative. Instead, I intend to ask leaders from all the stakeholders - regulators, investors, lenders, GSEs, FHA and consumer advocates - to come together and try to work out an efficient process of providing relief to homeowners," Sen. Dodd said. He is expected to announce the date and location of the summit soon.