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These issues are a much bigger deal than a $6-a-month increase in loan payments.
But analysts said they did not expect the bank to report a large increase in loan losses for the quarter.
A surprise increase in loan loss provisions by Toronto-Dominion Bank in June squarely focused attention on the issue.
And after acquiring Providian Financial's subprime credit card business in 2005, Washington Mutual now expects a sharp increase in loan charge-offs.
IndyMac would not comment on Ms. LaPointe's specific circumstances, but pointed to its sixfold increase in loan modifications in April over the same month last year.
The economic impact of a legal change on bank lending is considerable; an improvement of our legal indicator by one implies an increase in loan supply by 13.66%.
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Short sellers usually use stock loans to execute their trades, so publishing figures on loans would give a clearer picture about whether an increase in loans correlates with increased market volatility.
Despite the bank's progress, economic conditions had a "significant impact" on its results, Mr. Viola said, including an increase in loan-loss provisions.
The FPC could order an increase in loan-to-value ratios or force banks to hold more capital against mortgages if it becomes concerned that prices are out of control.
"We need an increase in loan-modification activity that is so dramatically above what's happening in the marketplace that it's hard for a purely voluntary agreement to get the job done," Eric Halperin, director of the Washington office of the Center for Responsible Lending, said.
An increase in loans inevitably requires an increase in capital in order to maintain prudent buffers.
More suggestions(18)
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increase in inequality
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