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Mr. Geithner has expressed support for the idea of modifying large numbers of loans held by subprime borrowers, a move Mr. Paulson has largely avoided.
After Spain's real estate bubble burst in 2008, many of its banks found themselves holding growing numbers of loans in or near default.
And the subpoenas suggest that officials at the Federal Housing Finance Agency believe that there are large numbers of loans that fall into the latter category.
●Growing numbers of loans have multiple indications of serious future risk of nonpayment — combinations of credit scores of 640 or less and DTI ratios that exceed 50percentt.
But until Mr. Johnson's testimony last week, it was largely unknown that the ratings agencies had been told that vast numbers of loans were being packaged as securities even though they failed to meet underwriting standards.
The companies have recently been ordered to oversee a vast new mortgage modification program, to buy greater numbers of loans, to refinance millions of at-risk homeowners and to loosen internal policies so they can work with more questionable borrowers.
Similar(50)
Large numbers of loan applications get denied.
The number of loans turning sour still remains extraordinarily high.
In contrast, the number of loans to buy-to-let landlords was up more than 25%.
One metric measured by impact investors is the number of loans disbursed.
The number of loans taken by movers was down by 9% month on month at 29,900.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com