RMA Journal Cover-Story on a More Balanced Lending System

[Note: This is a departure from my usual Enterprise GRC rants. I wanted to share a nice New Year's surprise that greeted me on a related topic, namely a new lending system that I have been socializing since early 2008.] Last year, Dr. Rick Buczynski (SVP and Chief Economist, IBISWorld) […]

Post a Comment

Financial Reform Now a Focus for Congress & The White House

With healthcare legislation now behind us and headed to the President for his signature, the biggest domestic priority for the President and Congress will likekly become reform of the nation's financial system, especially those areas that fall into the Wall Street Arena. It was three and a half years ago […]

Post a Comment

New Lending System (CCAF) in Line with OCC Thinking on Strengthening Loan Underwriting -- Bottom Line: CCAF Would Have Prevented The Crisis

In his remarks before the American Securitization Forum on February 2, 2010, Comptroller of the Currency John C. Dugan made the case that minimum underwriting standards could play a major role in reforming securitization markets, and, in fact, he went much further and made far greater assertions -- assertions that […]

Post a Comment

Chairman Bernanke, Tear Down That Wall!

I read David Lightman's piece yesterday in the Raleigh News & Observer about the long shadow on the Fed Chairman's confirmation that is cast by The Wall . That's right, I said "The Wall," and by that I am talking about the unnecessary obstruction that is effectively separating borrowers and […]

Post a Comment

The Plain and Simple Truth About Consumer Lending

Lending is a noble profession. It is integral to the operation of a free society and free markets. If we are to achieve an inclusive society, we must foster economic inclusion. That is the spirit behind the CRA legislation, passed in 1977. Despite allegations from misinformed individuals, CRA had no […]

Post a Comment

Implications of Significant Reduction in Consumer Credit--What to Do?

In last Thursday's front page article in The Wall Street Journal, Tom Lauricella, Jason Zweig, and Conor Daugherty said that "A year after the U.S. economy was brought to its knees by the bursting of the housing bubble, credit fo consumers is still being ratcheted back." The Federal Reserve reported […]

Post a Comment

Questions on Lender's Minds

As lenders asssess lending opportunities and risks in today's troubled economy, they must consider many factors, and unavoidably all sorts of questions pop into their minds. For example: Item: Congress is poised to enact new laws and regulations in the wake of the financial crisis and the banking industry is […]

Post a Comment

Preventing Economic Crises – What Are We To Do?

In his recent article “How Did Economists Get It So Wrong?” New York Times journalist Paul Krugman takes the reader on a journey from the birth of economics with the publication of Adam Smith’s “The Wealth of Nations” in 1776 to the theories of John Maynard Keynes and finally to […]

Post a Comment

Financial crisis avoidance requires fundamental changes in our lending systems

~ Contributed by Mingyuan Zhang ~ The Federal Reserve recently proposed the most significant changes to the mortgage provisions of the Truth in Lending Act (TILA) since it was enacted. Mainly, this proposal would impose new limitations on payments to mortgage lenders to curb predatory lending practices including originators’ steering […]

Post a Comment

Observations of Financial Crisis Shared in the 3rd Quarter Edition of SAS.com

I encourage you to check out the latest edition of SAS.com magazine. In the Industry Outlook Section (pages 4-5) Sunny and I share our thoughts on the current financial crisis -- its cause, what can be done about it, and how we can prevent reoccurrences. Essentially, we propose that what […]

Post a Comment