In 2000, Congress revisited the subprime problem. Once again, the concern was more about predatory financing techniques than systemic danger. But, like in 1998, there have been warnings about bigger problems.

In 2000, Congress revisited the subprime problem. Once again, the concern was more about predatory financing techniques than systemic danger. But, like in 1998, there have been warnings about bigger problems.

Ellen Seidman, manager regarding the workplace of Thrift Supervision, testified that predatory financing had been a concern of severe concern towards the OTS to some extent given that it raised major security and soundness issues for banking institutions. Seidman, talking ahead of the home Banking and Financial Services Committee in might 2000, stated investors required more training about mortgage-backed securities, because “predatory loans aren’t good company, not merely simply because they are unethical https://speedyloan.net/installment-loans-ar/, but simply because they can harm reputations and harmed stock prices. ”

Cathy Lesser Mansfield, a legislation teacher at Drake University, introduced the home committee with certain and data that are alarming the attention prices and foreclosure prices of subprime loans nationwide. “Probably the scariest information for me, ” Mansfield testified, “was an individual pool property foreclosure price. ” Mansfield had viewed the foreclosure price for one pool of loans that were bundled and in love with Wall Street. About an and a half after the pool was created, almost 28 percent of the loans were in delinquency or foreclosure, she said year. Fortsett å lese «In 2000, Congress revisited the subprime problem. Once again, the concern was more about predatory financing techniques than systemic danger. But, like in 1998, there have been warnings about bigger problems.»