Date:   11/3/2014 11:05:38 PM ( 10 y ago)
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URL:   https://www.curezone.org/forums/fm.asp?i=2216832

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Looks like CONgress and the federal reserve board agree with me on securitized mortgages. CONgress passed a bill saying securitized mortgage sponsors (mortgage lenders) have to retain at least 5% of the risk in the securities they create. I think it should be 100%, but at least 5% makes them think twice when they create this toxic waste. When you're creating a 50 billion dollar securitized pool of mortgages, 5% is a lot of money that you could get nailed for. Plus this doesn't just go for mortgages, it's all securitized transactions. Naturally they give exemptions for certain types, but it's definitely a step in the right direction. Knowing the lending snakes though, they'll probably figure out a way around it (not by transferring the risk though) and continue business as usual. Here's pictures of the meeting.
http://news.xinhuanet.com/english/photo/2014-10/23/c_133735725.htm


And here's the memo from the meeting.
http://www.federalreserve.gov/aboutthefed/boardmeetings/risk-retention-memo-2...



 

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