Sentences with phrase «of irresponsible lending»

The primary mortgage market in the United States was unfortunately experiencing a high level of irresponsible lending and borrowing in prior years, ultimately becoming the cause of our great recession.

It puts behind us once and for all the kind of irresponsible lending that disrupted the housing market and so badly damaged our economy, and it provides strong new consumer protections while preserving needed access to mortgage credit,» he said of the rule and its Qualified Mortgage standard.

High default rates are merely a symptom of irresponsible lending practices.

During the past decades of irresponsible lending, creditors threw credit around like candy in markets where the credit was dischargeable in bankruptcy (such as credit cards) and those where it was harder to write off debts in bankruptcy.

«But the G - 8 must recognize that the issue of irresponsible lending and illegitimate debt begins first and foremost with themselves.»

Not exact matches

As part of the rules to define what constitutes «fraudulent» or irresponsible lending, mortgage debt service should be reduced to the rate that FDIC head Sheila Bair recommended: 32 percent.

The # 2 billion payday loan industry was accused by its regulator of widespread irresponsible lending earlier this year.

[26] Maude, «who has railed against irresponsible lending by banks and mortgage companies», was accused of hypocrisy for receiving more than # 100,000 as a director of a company that has profited from sub-prime mortgages.

Interest Only Loans were viewed as one of the worst of the irresponsible loan lending practices.

In efforts to prevent losses associated with irresponsible lending practices, FHA is emphasizing enforcement of FHA requirements and is increasing its review of FHA approved lenders.

The lenders have brought this upon themselves because of years reckless, irresponsible and, in many cases, predatory and fraudulent lending.

Irresponsible lending caused problems for lenders and borrowers: problems worsened by the effect of complex financial instruments created out of the packaging of bundles of often worthless sub-prime or «toxic» loans.

There is, however, a dark side to the consumer credit market, fuelled by convenient access to credit, eg record levels of consumer debt, an increase in irresponsible lending practices, ineffective legislative protection of consumers and financial exclusion.

«This underscores the importance of mortgage availability to creditworthy home buyers, and the need to return to the safe, sensible underwriting standards that were in place before irresponsible lending led to the boom and bust cycle,» Phipps said.