Grab an airsickness bag for this one! Legal scam in a town near you!

Thank you for the comments, I hope you will all share the video, as I believe that we have got to pay attention to this kind of thing.

Julia: This video is a very clear and simple explanation of a much larger problem. It is not the newest one on the block but it is still going on and as banks fail there are more deals being made. The reply you saw from the FDIC was it this video Loss Sharing explained an FDIC production

It made sense to you because losses were not clearly defined by their argument only the simple statement that if there are no losses then they do not have to pay, see below - stated threshold  and generally would be the operative terms.

"On March 26, 2010, the FDIC indicated that it would no longer offer 95 percent loss coverage for losses above a stated threshold, but generally would offer 80 percent reimbursement for all losses, as defined in the LSA, on covered assets. Thus, in some cases, the FDIC may enter into an LSA that provides reimbursement for losses at a percentage other than 80 percent (e.g., 50 percent). These changes do not alter the terms of earlier LSAs that provide for 95 percent loss coverage above a stated threshold." - FDIC Loss-Sharing Agreements: A Primer

The stated threshold is the original loan balance.