Wall Street Journal (05/28/08) P. C1; Simon, Ruth
Unhappy buyers of home equity loans, subprime mortgages and other real estate loans are trying to force the nation's banks and mortgage firms to repurchase a growing number of at-risk loans. For lenders, the pressure can be traced to provisions in many loan sales that require them to take back loans that default unusually fast or are proven to contain mistakes or elements of fraud. Such disputes began to emerge two years ago as large numbers of subprime mortgages began going bad not long after origination and have expanded more recently to include home equity loans and mortgages made to borrowers with relatively good credit. Bond insurers that guaranteed investment-grade securities backed by pools of home-equity loans and lines of credit are also ratcheting up the pressure on lenders.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment