OTS Recommends Proceeding with Caution When Dealing with Losses
June 4, 2009
The Office of Thrift Supervision last week cautioned lenders to take extra care in calculating loan loss reserves in a mortgage market that continues to suffer from slumping house prices, rough economic conditions and rising default rates. The agency recommends that thrifts use both lagging data, such as historical loss rates, and leading data, such as migration analysis, to predict loss...