FDIC Head Warns of Mortgage Credit Losses Ahead

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00012989-fdic-head-warns-of-mortgage-credit-losses/

Residential mortgage lenders should be prepared for an increase in credit losses as interest rates rise and pull the reins on a years-long boom in the U.S. housing market, the chairman of the Federal Deposit Insurance Corp. said on Tuesday.

Donald Powell, in comments to the America’s Community Bankers conference in Orlando, said record home price increases have led to nontraditional mortgage products, such as loans that require little documentation and interest-only loans. But as interest rates begin to climb, borrowers will face higher debt service on some of those products.

For this complete story, please visit FDIC Head Warns of Mortgage Credit Losses Ahead.

FDIC Head Warns of Mortgage Credit Losses Ahead

Unknown Author

Featured Resources

Webinars

RA Compliance Corner: Managing Your Service Providers- Do you really have it all in order?

About