The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: russwinter who wrote (46962)	12/10/2005 10:50:24 AM
From: Ramsey Su	Read Replies (2) of 110194

I was discussing the upcoming 4 agency guidelines with a friend this week. Here are a couple of random thoughts: The most direct means that the regulators have to curtail this lax underwriting practice is by raising reserve requirements. e.g. if they double the reserve requirements of the IO loans and triple that for the payment option loans, that would make it so much less desirable for any institution to portfolio these products. However, there is no reason why they will not continue to originate these loans, as long as they can sell it to book a gain on sale. The buyers of these loans are likely not regulated by ots, occ, fdic nor the fed. So would any new guidelines have any teeth? Furthermore, we could not find ot quickly if any of the subprime lenders are regulated at all, or by whom. Looking at the website for all four agencies, we did not see any mention of the subprime lenders. So could they be benefactors of regulations that may eliminate the thrifts and the banks as competitors? ots.treas.gov occ.treas.gov fdic.gov federalreserve.gov What else can these agencies do?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next