In 2000, Congress revisited the subprime problem. Once again, the concern was more info on predatory financing techniques than systemic danger. But, as with 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 techniques than systemic danger. But, as with 1998, there have been warnings about bigger issues.

Ellen Seidman, manager regarding the workplace of Thrift Supervision, testified that predatory lending had been a concern of severe concern into the OTS to some extent as it raised major security and soundness issues for banking institutions. Seidman, talking ahead of the House Banking and Financial Services Committee in might 2000, stated investors required more training about mortgage-backed securities, because “predatory loans aren’t good company, not only since they are unethical, but simply because they could harm reputations and harmed stock prices. ”

Cathy Lesser Mansfield, a legislation teacher at Drake University, delivered your house committee with certain and data that are alarming the attention rates and foreclosure rates of subprime loans nationwide. “Probably the scariest data for me, ” Mansfield testified, “was an individual pool property foreclosure price. ” Mansfield had looked over the rate that is foreclosure one pool of loans that were bundled and in love with Wall Street. Continue reading “In 2000, Congress revisited the subprime problem. Once again, the concern was more info on predatory financing techniques than systemic danger. But, as with 1998, there have been warnings about bigger issues.”