Tread Lightly on Secondary Market Issues Related to Nontraditional Mortgages, BMA Warns Regulators
April 7, 2006
Proposed guidance on nontraditional mortgages needs to do more to protect the secondary market and ensure that loan buyers aren’t held liable for the actions of originators, a Wall Street trade group has warned. The warning came in a comment letter filed by the Bond Market Association in response to a proposal, issued in December by the Federal Financial Institutions Examination Council, which would set new underwriting, marketing, disclosure and consumer protection standards for…