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Article: Predatory pandemonium. (Cover Report: Secondary Market).
- Article from:
- Mortgage Banking
- Article date:
- April 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 Mortgage Bankers Association of America. 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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A harsh antipredatory-lending law in Georgia has triggered a revolt by the rating agencies over something called "assignee liability." It puts secondary market investors at risk if a loan covered by the law finds its way into a pool of securitized loans. It's gumming up the works in the secondary market and raising the call for a federal pre-emption.
AFTER YEARS OF WORKING ON PREDATORY LENDING issues, Donald Lampe, compliance attorney with Womble Carlyle Sandridge & Ricke PLLC, Greensboro, North Carolina, likes to tell a joke that perfectly sums up the industry's frustration with the Georgia Fair Lending Act (GAFLA): Most people in Georgia thought S&P was a ...