Chronicles of Subprime’s return – First new reg coming down the pike
Many of you are aware "… the House Financial Service Committee has approved an amendment to a mortgage reform and anti-predatory lending bill that would give federal regulators the discretion to make exceptions to a 5% credit risk retention requirement. The bill requires lenders to retain 5% of the credit risk on non-prime mortgages that are sold or securitized. The amendment would allow …." We all know Committee chairman Barney Frank, D-Mass., and his love for our industry; this quote is from a news story today about securitizing subprime in the newly regulated secondary … do ya see the NON-PRIME reference there? You know why that’s there? Because Barney and the dudes in his committee know (like me), it’s just a matter of time – right around the corner is how that translates – says ME.
PS: IF your read about anybody else telling you brokers are toast, and/or that subprime is dead – I want you to Laugh Out Loud at them – ’cause you’re paying attention!
