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2003 Testimony On Securitization And Predatory Lending In A Hearing On 'Protecting Homeowners: Preventing Abusive Lending While Preserving Access To Credit', Kurt Eggert Nov 2003

2003 Testimony On Securitization And Predatory Lending In A Hearing On 'Protecting Homeowners: Preventing Abusive Lending While Preserving Access To Credit', Kurt Eggert

Kurt Eggert

This 2003 Congressional Testimony warns of the dangers of securitizing subprime loans. After defining "predatory lending" and describing the process of securitization, it argues that securitizing subprime loans has many dangers. While some have claimed that securitizing loans lowers loan costs to borrowers, the reverse might be true and securitization may actually increase the costs of loans to borrowers. This testimony states that securitization undermines loan underwriting. As originators immediately sell their loans and so face less risk of loss even if a borrower defaults, the originators naturally will spend less time and effort screening potential loans for default, thus …


Keynote Address, Susan S. Bies, Alan Rechtschaffen Jan 2003

Keynote Address, Susan S. Bies, Alan Rechtschaffen

Fordham Journal of Corporate & Financial Law

No abstract provided.