U.S. Agency Proposes Relaxed Rules On Mortgage Risk, Underwriting

wochit business
August 28, 2013 AT 8:23 AM
U.S. regulators on Wednesday unveiled a reworked proposal to reduce risk in the mortgage market by requiring lenders to keep a stake in the loans they bundle and sell as securities. The Federal Deposit Insurance Corp. approved a new version of the stricter 2011 proposal designed to limit the type of shoddy underwriting practices that fueled the housing bubble.