Number: RS22722
Title: Securitization and Federal Regulation of Mortgages for Safety and Soundness
Authors: Edward V. Murphy, Government and Finance Division 
Abstract: There is some evidence that the underwriting standards of non-banks that chose to securitize loans outside of Fannie Mae and Freddie Mac became weaker as the housing boom progressed. Indicators of excessive debt appear to have weakened more than indicators of weaker borrower payment history. Potential reforms of securitization and the non-bank lending channel are now under consideration.
Pages: 6
Date: October 31, 2008