Fed's Bies speaks out about mortgage risk ... again
"Bies says regulators concerned about mortgage underwriting."
"Fed's Bies calls subprime mortgage market 'very problematic'"
"Bies points to 'transaction-based mentality' among lenders"
Bies also spoke out in mid-January on this topic. I posted some comments about that address at the time.
The fact of the matter is, the Fed and other banking regulators are a day late and a dollar short. Rather than just introduce and debate weak-kneed "guidance" about high-risk lending -- starting back in December 2005 -- they should have done all they could to crack down on it. Because they didn't, we're experiencing the worst mortgage delinquency and foreclosure rates on high-risk loans in years.