Washington, D.C. - Treasury Secretary Henry Paulson proved Thursday the response to the credit crunch and mortgage crisis is becoming as muddled as the problems they're trying to alleviate.
Along similar lines, Kurt Eggert, a law professor at Chapman University in California and a former member of the Fed's Consumer Advisory Council, is a proponent of "assignee liability," requiring mortgage brokers to keep a minimum amount of assets on their balance sheets before they can be licensed.
"With assignee liability, investors would demand greater supervision of originators to ensure that borrowers were not victims of misrepresentation," he says. Being required to hang on to some of their loans would do wonders for lenders' risk-assessment as well.
To read this entire article, please visit: http://www.paradigmshiftpr.com/skinin.htm
Posts
0 comments:
Post a Comment