Inman News (07/31/08)
Mortgage standards were relaxed after Fannie Mae and Freddie Mac were forced to take on less of a role in the home loan market in 2003 following accounting and management scandals, according to a new study from UC Irvine. "Aggressive" private-label issuers of mortgage-backed securities stepped in to fill the void and are largely to blame for the new credit environment that ultimately allowed subprime lending to flourish and led to the escalation in home prices with "momentum characteristic of a bubble." The Mortgage Bankers Association, the National Association of Realtors' Subprime Crisis Research Consortium and Freddie Mac helped fund the study.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment