Everbright is also struggling with loans that were issued in violation of prudent lending standards and have not been repaid.
One not-so-fond memory: JP Morgan's own 2007 analysis of its mortgage business revealed that 27% of the loans it sold fell short of prudent lending standards.
Wells Fargo officials attribute that divide to prudent lending standards — like requiring higher down payments — and being quicker to restructure problem loans from the start.
"The only way to achieve some of these estimates would be to abandon prudent underwriting standards, and that would only create more unsustainable risks," said Tony Fratto, the deputy press secretary.
"Although there were supposed to have been prudent underwriting standards, it turned out that all the borrower needed was a heartbeat to get a loan," said Michael B. Carlinsky, a partner at Quinn Emanuel Urquhart Oliver & Hedges, which is representing MBIA.
In the context of the worst housing market collapse since the 1930s and a severe recession, FHA's normally prudent lending standards proved inadequate setting it up for major losses.
One policy approach that has gained national attention is legislation enacted in Florida to establish a "reasonable and prudent parent standard" allowing foster parents and others to make sensible parental decisions about outside activities for the children placed in their care-without the unnecessary involvement of caseworkers or judges.
Eventually, even the prudent relax their standards too - that's how risky behaviour drives out good when risk is rewarded.
As more states look to implement laws related to cameras in nursing homes, it seems prudent to develop standards around how and when these devices should be employed.
Critical to the successful implementation of an integrated EHR-public health immunization system is the standardization of data content and exchange, unique identifiers, data flow, and privacy and security requirements [ 13]; it would be prudent for these standards to be considered now as the development of many EHRs across the country is still in its infancy and the architecture is malleable.
