New Rule: Banks Exempt from New Mortgage RulesSubmitted by bobbyw24 on Tue, 03/29/2011 - 06:25
I tell ya, that president whom liberals blindly worship sure is tough on those Big Banks he lambastes in the press
Long awaited FDIC "skin-in-the-game" mortgage rules are out. Amusingly, banks are largely exempt from the new rules. On one hand it's hard to make this stuff up, on the other hand it seems laughably easy to believe. My ears say the proposal sounds like it came straight from "The Onion".
Please consider FDIC’s plan for ‘skin-in-the-game’ loans
Federal regulators drafting tighter underwriting standards for mortgages are planning to exempt banks from a key rule if they sell loans to two seized mortgage-buying giants.
The long-awaited proposal is due to be publicly released by the Federal Deposit Insurance Corp. Tuesday, and the proposal was obtained ahead of that by MarketWatch. At issue is a provision in the Dodd-Frank Act that requires banks to have “skin in the game” — namely, by retaining 5% of the risk of loans they package and sell.