San Diego Housing Market News and Analysis
Mortgage Guidelines Moving Forward
Submitted by Rich Toscano on March 29, 2006 - 6:03pm
You may recall that at the end of 2005, the OCC and friends released a proposed set of rather stringent lending guidelines. (See Is This the End of E-Z Credit? for a summary). The publication in question did not put guidelines into place, but rather explained the guidelines being discussed and requested comments from the banking community.
The draft rules didn't seem to scare anyone straight. Some lenders tightened up, but that seemed as much a symptom of credit conditions as anything. Meanwhile, in a desperate bid for more market share, some lenders have gotten even more risky since the document's original publication.
Now, as my man Calculated Risk points out, the comment period has come to an end. His article includes a link to all comments, for those intrepid folks who wish to read them. Most of the comments seem to be a request for an extension of the comment period from back when the original period was slated to end a month ago. Many of these entities have not followed up, which is very surprising. as a matter of fact, I'll be they did follow up but that the comments haven't made it to the FDIC website. I will check back next week.
More to the point of this post is the fact that the comment period has ended. The threat of regulations didn't seem to do anything... we are now moving to the next stage of getting actual regulations, instead of proposals thereof. I do not know how long it will take, or for that matter whether the guidelines will end up as stringent as what was found in the draft document. But the process is moving forward and it is something we would do well to watch in the coming months.
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