FDIC Chair Warns of Government "Exposure" in MortgagesSubmitted by bobbyw24 on Thu, 09/09/2010 - 12:58
A key U.S. banking regulator raised concern on Wednesday about the risk of "exposure" the government is taking on in the mortgage market and urged more stringent standards for underwriting mortgages.
"We should all be concerned about the type of exposure that the government is taking on through guaranteeing so many mortgages right now and make sure that we do have some prudent underwriting standards," Federal Deposit Insurance Corp Chairman Sheila Bair suggested in an interview on CNBC.
"The government is taking on a lot of exposure and guaranteeing most mortgages that are being originated these days," she said. "And I think the policymakers here are trying to balance the need for prudent underwriting with a need to support... what is still a very distressed housing market."
To see just how deeply into the mortgage market the Fed Govt is, go to: