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Loan Modification
: Mortgage Lender Implode-o-MeterFDIC proposes new rules on asset-backed securities
By Implode-Explode Heavy Industries
"The securities, which may contain mortgage, credit card or auto loans, would have to meet the Federal Deposit Insurance Corp.'s requirements so the government wouldn't seize them if the bank failed.
Banks would be required in most cases to hold at least 5 percent of the securities on their own books to qualify for a guarantee against seizure. The idea is that banks with such exposure to risk would be more careful about properly screening borrowers."
Full post as published by Mortgage Lender Implode-o-Meter on May 11, 2010 (boomark / email).
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