SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: russwinter who wrote (48723)1/4/2006 12:52:19 PM
From: Ramsey Su  Read Replies (1) of 110194
 
The race is on.

Listened to a Leh conf call this morning. Someone at OCC (I did not catch her name) was presenting on the subject of mortgage guidelines released last month.

Very few questions but very good questions. Here are a couple:

1. a caller asked about how much teeth does the guidelines have? The presenter said guidelines are one notch below regulations. Since they are not regulations, the institutions would not be violating laws. They will be regulated via the supervisory powers of the various agencies.

2. a caller asked about the mortgage originators, such as the subprimer lenders who are not regulated. The presenter basically said they are on their own. The regulating agencies have no jurisdictions over them whatsoever.

The more I think about it, the more I dislike this scenario.

These guidelines in essence is removing a bunch of competition in the subprime world. Big boys like Wamu (Long Beach Savings) are regulated. Their presence in the subprime world is going to be curtailed by these guidelines.

Now the race is on. If the subprimers can grab more market share and defaults do not go up for a few more months, they could be in great shape. Loan originations may go up along with a higher WAC.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News