BREAKING ALL THE RULES Forum

Full Version: “Shadow Banks” Dominate Mortgage Lending by Piling on Risks. FHA on the Hook.
You're currently viewing a stripped down version of our content. View the full version with proper formatting.

BlackListed News

“Shadow Banks” Dominate Mortgage Lending by Piling on Risks. FHA on the Hook.

<p>Lovingly known as “shadow banks,” nonbanks have come to dominate the mortgage market. And they originate the riskiest mortgages. The government — mostly the Federal Housing Administration (FHA) — is on the hook. Nonbanks do not take deposits and are not regulated by banking regulators (Federal Reserve, FDIC, and OCC). Their funding is derived mostly from selling the mortgages they originate, but also from bank loans and other sources. During the mortgage crisis, a slew of them got in trouble and, because they did not hold deposits, were allowed to collapse unceremoniously.</p>


http://feedproxy.google.com/~r/blacklist...n-the.html