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Improving home equity risk management practices.(Retail Risk)
- Article from:
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The RMA Journal
- Article date:
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March 1, 2005
- Author:
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Copyright informationCOPYRIGHT 2005 The Risk Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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With market risk rising and compliance requirements likely to expand, home equity lenders must act now to improve their risk management capabilities by enhancing underwriting guidelines, continually evaluating market risk, tightening internal review processes, and taking steps to mitigate inadvertent risks. This article tells why--and how.
In many markets across the U.S., the risks are high for home equity lenders. Economic conditions are changing, housing price appreciation continues at a record pace in many markets, new and more aggressive competitors are entering the market, and regulators are paying increasing attention to lender activities.
Indicators of Trouble ...
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