In 2000, Congress revisited the subprime problem. Once again, the concern was more info on predatory financing methods than systemic risk. But, like in 1998, there have been warnings about bigger issues.

In 2000, Congress revisited the subprime problem. Once again, the concern was more info on predatory financing methods than systemic risk. But, like in 1998, there have been warnings about bigger issues.

In 2000, Congress revisited the subprime problem. Once again, the concern was more info on predatory financing methods than systemic risk. But, like in 1998, there have been warnings about bigger issues.

Ellen Seidman, manager associated with workplace of Thrift Supervision, testified that predatory financing had been a problem of severe concern into the OTS in component since it raised safety that is major soundness issues for banking institutions. Seidman, talking prior to the home Banking and Financial Services Committee in might 2000, said investors needed more education about mortgage-backed securities, because “predatory loans aren’t good company, not merely simply because they can damage reputations and harm stock costs. Since they’re unethical, but”

Cathy Lesser Mansfield, a legislation professor at Drake University, introduced the home committee with certain and alarming information on the attention prices and foreclosure rates of subprime loans nationwide. “Probably the scariest information for myself, ” Mansfield testified, “was an individual pool property property property foreclosure price. ” Mansfield had viewed the rate that is foreclosure one pool of loans that were bundled and obsessed about Wall Street. Of a 12 months. 5 following the pool was made, nearly 28 per cent regarding the loans had been in delinquency or property foreclosure, she stated. Czytaj więcej about In 2000, Congress revisited the subprime problem. Once again, the concern was more info on predatory financing methods than systemic risk. But, like in 1998, there have been warnings about bigger issues.