Public Interest Comment on Subprime Mortgage Lending

The subprime mortgage market is relatively new, and some lenders and borrowers misjudged the risk of loans and originated overly-risky loans—but most borrowers are now better off because of their subprime loans. The financial regulatory agencies should consider the unintended consequences of possible rationing or tightening of lending standards due to any restrictions on mortgage loans. They should also consider the cumulative effect of disclosure regulations on the ability of consumers to understand the information in front of them when applying for a loan.

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