Thursday

Tougher Rules For US Mortgage Industry?

US financial regulators are recommending a series of tougher new regulations for mortgage brokers and financial institutions as part of their efforts to minimize the risk of repeating the mortgage and credit crisis. Treasury Secretary Henry Paulson outlined policy recommendations from the President's Working Group on Financial Markets (PWG) with the aim of creating more transparent, better-functioning and better-managed markets. The report recommends higher capital requirements and better disclosure of risky investments. It also outlines new consumer protections for the mortgage lending industry. Implementing national licensing standards at the state level for mortgage originators and encouraging credit ratings agencies to differentiate between ratings on structured products and traditional bond ratings are also among the recommendations.

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