Loan Risks To Be Passed On To Lenders

This certainly makes a lot of sense and we will find out more today.

“Proposed guidelines aimed at restoring credibility to the market for mortgage securities would switch more of the risk to lenders that originate loans and investment firms that package them into securities.

The guidelines, expected to be announced Wednesday by the American Securitization Forum, a trade group that represents lenders, servicing companies and investors, are intended to set standards for when mortgage companies should buy back delinquent loans because of violations of representations and warranties made at the time the mortgages were packaged into securities.”