United States Call Strengthening Mortgage Loans Business Regulation
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Including analysts, investors and economists, including more than 50 leading U.S. industry December 21, "a joint letter," urged the U.S. regulatory authorities on the mortgage securitization market for fundamental reform, strengthen supervision of the mortgage business . These people believe that business should be for mortgage fraud that exist in the development of national normative standards, because it is such a drag on fraud recovery in U.S. housing market.
Urged regulators to attack
By "Dr. Doom" Roubini and economist John Kenneth Galbraith, and former U.S. Housing Finance Committee more than 50 people in the industry such as the joint letter signed by 21, to submit to federal regulators. These people have asked regulators to develop as soon as possible the terms of service on how to deal with the mortgage foreclosure case, the loan modification and other related activities to regulate, and that if the mortgage loans continue to have problems, the holder for housing, investors and the wider extremely detrimental to economic development.
The open letter urged the regulatory authorities in the "Dodd - Frank Act" under the framework, and take the responsibility to develop new regulatory standards, and as part of the work to deal with risks. The "joint letter," one of the initiators of action, institutional risk analysis PVA founder Christopher said: "The real estate market is collapsing. We want to tell regulators is that you have statutory powers to take action."
Federal Reserve, the SEC, the Federal Deposit Insurance Corporation (FDIC), the U.S. Comptroller of the Currency and other agencies have received this open letter.
With the mortgage file error exists in the service process, terms such acts of abuse or evidence of fraud continue to be disclosed, regulators have called for regulations that mortgage provider. In the Dec. 1 meeting of the Senate Banking Committee hearing, FDIC Chairman Bell says that rule-making will give regulators "to better adjustment loan providers and mortgage portfolio held by investors interested unique opportunity. "
However, because regulators were unable to administrative privileges, the relevant regulatory measures has not been introduced. U.S. Treasury for its loan service provider that does not have administrative rights, although it has taken over the two largest U.S. mortgage providers Freddie Mac and Fannie Mae.
"Foreclosure door" results released next month
This year in October, the U.S. media revealed that some banks and mortgage service providers approved by the foreclosure machine signature files, large files may cause errors in the content of the message, a time of public outrage on a broad surge in the banking industry, Wall Street Buzz " foreclosure door "storm. So far, including Bank of America, Citibank, JP Morgan Chase, Wells Fargo and other large financial institutions, including Wall Street are involved.
According to the U.S. Treasury Secretary Timothy Geithner and the Minister of Housing and Urban Development Shaun Donovan, 20, of the position, responsible for "foreclosure door" special team investigating the Obama Administration will release the results next January. Special group of 11 federal government departments by the officials, the survey focused on whether there is a foreclosure document processing alleged irregularities.
Moreover, 50 states are on the banks of the Prosecutor failed to properly audit the foreclosure process, the error file may be submitted to the lender was forced to lose their homes lead to foreclosure joint investigation of allegations.
Prior to the market are concerned that some mortgage bond investors, or to file foreclosure problem on the grounds bonds to require banks to buy back issues, once the buy-back size than expected, the banks fear facing enormous pressure on cash flow, the U.S. banking industry may appears similar to the 2007-2009 financial crisis, a new round of difficulties. However, Donovan 20, Geithner and have said that regulators did not find foreclosures so far a "systemic", and may threaten or weaken the financial stability of the U.S. real estate mortgage investment risks related clues. |
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Author Resource:-
Chris Holigan a professianl writer from , it provides the high quality products, such as China GPS Pet Locator, China Package Tracker, Mini Pet Tracker, and many more.
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By :
Jessie Stone
Submitted
2010-12-27 21:29:12 |
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