Group Pushes For National Mortgage Standards
A group of prominent academics and investors on Tuesday urged the creation of a set of national standards for residential mortgages in the US to assist borrowers who are finding difficulty obtaining financing to purchase a home. In a letter addressed to Fed Chairman Ben Bernanke, Treasury Secretary Timothy Geithner, and other officials, the group said that the recent foreclosure document scandal underscores an urgent need for action.
"Problems of this magnitude are a threat not only to the economic recovery, but to the safety and soundness of all insured depository institutions. The chaotic situation in the mortgage market today demands immediate action to ensure all parties are treated fairly and to restore the confidence needed to support a recovery in real estate markets and the entire U.S. economy," the letter read.
The group is asking officials to act quickly in finalizing rules to govern the way that residential mortgages are originated, sold, and serviced. Those rules have already been mandated, as part of the recent Dodd-Frank Act which overhauled regulation of activity on Wall Street.
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