Jumbo Mortgage Risk Will Topple the Teetering GSEs [View article]
The GSE's guarantee loans they don't originate, and therefore don't adequately understand. The originators are in a better position to understand the loans, but don't care enough about loan quality because to loans are sold without recourse.
Requiring all loan sales to GSE's to be with recourse would do much to solve the associated problems.
-
The GSE's guarantee loans they don't originate, and therefore don't adequately understand. The originators are in a better position to understand the loans, but don't care enough about loan quality because to loans are sold without recourse.
Feb 29 17:47 pm
|Rating:
0
0
All Comments by Geronimo »Jumbo Mortgage Risk Will Topple the Teetering GSEs [View article]
Requiring all loan sales to GSE's to be with recourse would do much to solve the associated problems.