Bair has a reputation as a consumer advocate who hasn't always won the praise of the lending industry. Two years ago, when the economy and housing were booming, she warned lenders that they needed to rework subprime loans -- or risk damaging the economy.

It wasn't a popular position at the time, said Ellen Seidman, a former director of the Office of Thrift Supervision and now a fellow at the New America Foundation.

"To some extent, she was getting the 'Hey lady, you're not supposed to be talking about this' reaction," said Seidman. "She began very early saying we have a problem here." LINK to audio