Regulator Warns of Mortgage Losses for U.S. Banks
Regulator Warns of Mortgage Losses for U.S. Banks
U.S. banks could suffer fresh mortgage losses over the next five years on home equity loans made a decade earlier, with more than half the amount borrowed from national banks leading to higher payments from 2014 to 2017.
The Office of the Comptroller of the Currency (OCC) warns that equity borrowers whose incomes and property values have plunged may default, exposing banks to more losses. An OCC report identifies other risks facing banks, including a glut of distressed properties and a profit squeeze stemming from costs tied to flawed foreclosure procedures.
Source: “Regulator Warns of Mortgage Losses for U.S. Banks,” NASDAQ (July 5, 2012)
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