The settlement noted that the subprime MBS from ResCap included mortgages with looser underwriting standards than the underwriting guidelines that were disclosed to MBS investors.
The HFPC noted that most of the potential mortgages would have gone to borrowers with credit scores below 660, and to a lesser extent, to borrowers with credit scores between 660 and 700.
The MBA is considering its options to appeal the FTC's decision regarding the trade group's request for a mortgage-servicing exemption under the Telephone Consumer Protection Act.