Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Inside Washington (01/11/2011)
* WASHINGTON (1/12/11)--The Federal Deposit Insurance Corp. is considering a proposal to require big banks that own both servicers and home equity loans to disclose to potential investors—prior to the packaging and sale of the loans--what would happen to the second-lien if the first mortgage comes under distress (Marketwatch Jan 11). Holders of the home equity loans often fail to disclose to investors what their arrangement is on the home equity loans with the corresponding owner of the primary loans. Critics say this lack of transparency is among the reasons why large servicers block modifications to mortgages even when bondholders agree to lower payments for borrowers. Most home equity loans are held by large banks, which also own the large servicers. Observers argue this creates a conflict of interest within the marketplace because banks veto the proposed modifications to primary loans to preserve the home equity loans. Regulators are considering addressing this issue by requiring banks issuing primary mortgages for securitization to disclose what would happen to the second lien if the first mortgage becomes distressed …


RSS





print
News Now LiveWire
.@NACHAOnline report: ACH volume increases to 23B payments in 2014 http://t.co/va2WYMh4Zv
15 hours ago
.@CUNA's @HampelBill in @washingtonpost on options for wary mortgage borrowers: http://t.co/CPSgTNgwmm
20 hours ago
Housing starts thaw, mortgage rates stand pat #Market #NewsNow http://t.co/hhPj5v5AH3
21 hours ago
.@CUNA files #RBC2 comment, urges #CU system to be heard #NewsNow http://t.co/yfoZHAMlZc
21 hours ago
#NewsNow Youth Month attracts 100,000th member for Mich. CU http://t.co/cgF5o83XlK
22 hours ago