Mortgage crisis

Subprime Bonds Are Back With Different Name Seven Years After U.S. Crisis

By: Bloomberg

“The reason that investors haven’t come back to the market in general is that the problems related to conflicts of interest and the lack of transparency haven’t been solved,’ said Chris Ames, head of securitized products at Schroder Investment Management North America Inc.”

Mortgage Investors Aren’t Sold On Subprime Loans

With TRID implementation just weeks old, the mortgage industry continues to search for ways to bring investors back into the fold. While the new regulations are making the process safer for consumers, investors still aren’t convinced.

Having a signed copy of the transaction is a start, but they must be able to follow the money. They must also be assured that every part of the mortgage process was done according to regulation, so it doesn’t pose undue risk.

To regain investor confidence, the mortgage industry needs to improve transparency by adopting a process in which all entities involved can see that the file is handled properly at every step.

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