U.S. Warns Lenders To Elevate Home Equity Lending Standards
Kirsten Downey writes for the Washington Post on new guidelines from federal banking regulators regarding home equity lending.
The regulators' warning came in what is called a "guidance" to the lending institutions, issued jointly by the Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the National Credit Union Administration. They told the lenders they regulate that the institutions' "credit risk management practices have not kept pace with the products' rapid growth and easing of underwriting standards."The text of the new guidance (PDF) is available online.
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