Governor Randall S. Kroszner
At the American Securitization Forum 2008 Conference, Las Vegas, Nevada
Governor Kroszner presented identical remarks at the Women in Housing and Finance Subprime Symposium, Washington, D.C., on February 6, 2008
Protecting Homeowners and Sustaining Home OwnershipFebruary 4, 2008
Quote: "Challenges remain, for example, with respect to ongoing constraints on servicing capacity to expedite work outs. Servicers must undertake the investment to overcome the capacity challenges and provide transparent and timely measures of the results."
Quote: "Our public hearings and our analysis identified problems not just in higher-priced loans, however, but in the broader mortgage market. Thus, our proposal addresses unfair or deceptive practices for the vast majority of mortgage loans secured by a consumer's primary home. Areas targeted this broadly include broker steering, appraisal coercion, unwarranted servicing fees, and deceptive advertising. I'll touch on broker steering toward the end of my remarks."
There are more elements of our comprehensive proposal that I do not have time today to discuss, such as a prohibition against coercing appraisers and restrictions on unwarranted servicing fees. We anticipate vigorous public comment on this proposal, and once we have carefully considered all the input we receive, we will move expeditiously to a final rule. As I noted at the outset, effective consumer protection can help to restore confidence in the mortgage markets and help to preserve the flow of capital to consumers who wish to purchase a home.
It is not too early to emphasize that the effectiveness of the final rule will depend critically on effective enforcement. The Federal Reserve will do its part to ensure compliance among the institutions it supervises."
Emphasis added... I wonder if anyone made any odds on whether the FRB would actually take any action since this speech was made in Vegas....